Kuwait faces serious and exceptional challenge due to oil reliance

The Kuwaiti government has warned in its new agenda that the oil-rich country is facing a "serious and exceptional challenge" amid fluctuating oil prices and its dependence on it as the sole source of income for public finances.

The program obtained by Reuters explained that this challenge threatens its ability to continue providing a decent life for citizens and meeting their basic needs and jeopardizes its ability to meet domestic and international obligations.

The program stated that the expected deficit in the state's general budget over the next five years would range between 45 and 60 billion dinars ($146.13 to $194.84 billion) without advancing economic and financial reforms.

The program warned that deteriorating financial and economic conditions could result in individual, corporate, and bank defaults, a "serious" rise in unemployment rates, social services collapse, and social security.

During the current legislative session, the document revealed that the government intends to enact laws, including liquidity tools, corporate profit taxes, and selective taxes.

It also plans to begin feasibility studies for a railway project connecting to Saudi Arabia within one hundred days.

Reuters