The Ministry of Finance launches a financial program to resume economic reforms.

Yemen’s Ministry of Finance Launches Comprehensive Financial Reform Program

The Ministry of Finance in Yemen has announced the initiation of a comprehensive financial and structural reform program. This initiative aims to resume the implementation of economic reform priorities, reflecting the government’s commitment to rebuilding the country’s financial and economic trajectory on sustainable and disciplined foundations.

Addressing Economic Imbalances

In a statement received by the Yemeni News Agency (Saba), the Ministry emphasized that this initiative responds urgently to the severe structural imbalances in the national economy. These imbalances stem from the war imposed by the Houthi militia, which has caused significant financial shocks. Notably, the disruption of key foreign currency sources and the halt of crude oil exports—accounting for 65% of the state budget’s resources—have severely impacted the economy. Additionally, the interruption of central resource flows to the public treasury has limited the government’s financial capacity and increased the economy’s vulnerability to internal and external shocks.

Transitioning from Diagnosis to Implementation

The Ministry of Finance is actively working to recalibrate the financial and economic path. It has moved from diagnosing issues to implementing institutional measures. This shift follows the issuance of Decision No. (11) of 2025 by the Presidential Leadership Council, which outlines a comprehensive economic reform plan.

Importance of Integrated Management

The statement highlighted the significance of this decision in establishing integrated management. It connects the recovery of public resources with the governance of the revenue collection process. The plan also aims to eliminate all illegal fees and taxes, ensuring that various revenue streams and economic entities fall under state oversight. This approach seeks to enhance financial management efficiency and curb economic waste and distortions.

Strengthening International Cooperation

On the international front, the Ministry noted that the reform agenda gains momentum through the activation of Article IV consultations with the International Monetary Fund (IMF). These consultations serve as a crucial gateway for reintegrating the Yemeni economy into the global financial system. They provide independent technical assessments and support the design of data-driven fiscal and monetary policies.

Enhancing Transparency and Credibility

The Ministry anticipates that these reforms will improve transparency and bolster the government’s creditworthiness among donors and investors. This, in turn, will create an attractive environment for external support and investment flows.

Building Local Trust and Investment

Locally, the Ministry expects these measures to foster trust and enhance the quality of economic policies. They aim to create favorable conditions for attracting external support and investments.

The Role of Oversight Institutions

The Ministry stressed that the success of this initiative requires the effective activation of oversight tools. Key institutions include the Central Organization for Control and Auditing, the National Anti-Corruption Commission, and the judiciary, represented by the Public Funds Prosecution. Collaboration among these entities is essential for effective governance.

Reinforcing Government Procurement Oversight

Furthermore, the Ministry underscored the importance of reactivating the Supreme Committee for Government Tenders and Auctions. This step will enhance oversight of public funds and ensure compliance with legal frameworks, ultimately improving public spending efficiency and regulating salary disbursement.

A Call for Sustainable Practices

In conclusion, the Ministry of Finance emphasized that the upcoming phase necessitates translating these initiatives into sustainable institutional practices. This approach serves as a fundamental entry point for resolving the current economic crisis and achieving the desired financial and economic stability.

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