Leadership Council Endorses Government Reforms as Foundation for State Institution Development

Government Implements Bold Economic Reforms in Yemen

A senior official from the Presidential Leadership Council has welcomed the recent economic, financial, and administrative decisions made by the Cabinet during its meeting in Aden. Chaired by Prime Minister Dr. Shaye’ Mohsen Al-Zandani, these measures signify a substantial step toward comprehensive reforms aimed at improving living conditions and enhancing the efficiency of state institutions.

Key Decisions to Support Citizens

The official commended the government’s decisions, which include a 20% cost-of-living allowance for all state employees, the disbursement of overdue annual bonuses, and the resolution of long-standing employment adjustments. Furthermore, these measures emphasize enhancing public spending efficiency, activating oversight bodies, and combating corruption. The establishment of a high committee for tenders reflects the government’s serious commitment to addressing accumulated imbalances and revitalizing state institutions on sustainable foundations.

Commitment to Economic Reform

These actions extend the economic, financial, and administrative reforms led by the Presidential Leadership Council and the government, following Council Decision No. (11) of 2025. This decision outlines priorities for comprehensive reforms, including structural adjustments aimed at channeling all state revenues into the government’s account at the Central Bank, closing smuggling routes, halting waste, and enhancing self-reliance. These steps ensure the government can meet its obligations to citizens.

Addressing Currency Exchange Rates

The government has also committed to implementing necessary reforms, including the liberalization of the customs dollar exchange rate. This economic measure, common in many countries, primarily aims to rectify existing distortions in revenue and customs policies. It seeks to bolster state resources, enabling continued salary payments, improved services, and reduced reliance on inflationary sources to finance the public budget deficit.

Protecting Citizens from Economic Burdens

The official emphasized that the government has taken clear steps to shield citizens from additional burdens by exempting essential goods from legal exemptions. Concurrently, the government has introduced measures to enhance living conditions, boost purchasing power, and tighten market oversight to prevent exploitation, monopolies, and unjustified price increases.

Aiming for Stability and Justice

The reforms primarily aim to stabilize living conditions and services for citizens, protect state institutions, and maintain their capacity to deliver services and salaries. They also strive to restore financial and administrative balance, building a more stable, equitable, and sustainable economy after years of war and suffering exacerbated by Houthi militia attacks on oil facilities.

Support from the Private Sector

The official commended the national stance of the private sector, business leaders, and economic entities in responsibly engaging with government reforms. These reforms aim to protect the national economy, improve the investment environment, and strengthen the partnership between the state and the business community, which is essential for job creation and development.

Acknowledgment of International Support

The official also expressed gratitude for the sincere support from Saudi Arabia and the ongoing assistance for economic and service reforms to alleviate the suffering of the Yemeni people. Additionally, the international community and regional partners continue to support recovery efforts and the establishment of state institutions.

Focus on Citizen-Centric Development

The official reiterated that citizens remain the focal point of development and the ultimate goal of all government policies and actions. The success of the reform process requires broad national support to protect state institutions, back government efforts, and foster trust in recovery initiatives.