Lebanese ministries told to wait to grant approval for subsidized imports

A man counts U.S. dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon April 24, 2020. (REUTERS)

• Finance Ministry to reduce number of subsidized goods from 80 to 30, source tells Arab News
• Stores report declining sales as food prices surge

BEIRUT: The Banque du Liban has informed the Economy Ministry and other concerned ministries of the need to wait to grant approval for subsidized imports.
The move by Lebanon’s central bank comes as the caretaker government has been unable to secure a social safety net by agreeing to issue ration cards for the poorest families.
Meanwhile, there are no solutions to the problems obstructing the formation of a government to rescue the country from its economic crisis.
Prices of food such as beef and chicken have risen steeply, shocking supermarket customers. Employees at these stores say sales have declined due to people’s inability to pay these higher prices.
A source in the Finance Ministry told Arab News that the state supports “about 80 commodities,” including “wheat, fuel and medicines,” and that the ministry is planning to reduce this number to 30.
Subsidies have been removed from medical devices and supplies. The Medical Equipment and Devices Importers Syndicate said: “This means that the prices of goods (in this sector) will significantly rise.”
Subsidies on over-the-counter drugs are likely to be permanently lifted, but there are no plans to remove subsidies on medicines for incurable diseases.
Monthly subsidies do not exceed $500 million, but the scarcity of financial resources and the government’s inability to undertake reforms has made covering this cost difficult.