Panel presents proposals meant to stimulate economy

AMMAN – A panel of about 40 experts and private sector representatives Sunday made known their recommendations on ways to stimulate the Kingdom’s economy in the short and medium terms at a meeting with the prime minister.

Having examined the challenges facing Jordan’s economy, the economic dialogue committee, formed recently by Premier Marouf Bakhit, came up with solutions for the current economic woes and with proposals to fuel growth during 2012 and 2013.

Among the recommendations to help boost the economic performance in 2011 is encouraging tourism to the country this summer, in light of the political unrest in several Arab countries.

The panel recommended aggressive promotional campaigns to attract Arab tourists to the Kingdom and encourage domestic tourism by exempting travel agencies from the sales tax on revenues generated from local tourism.

In light of the increasing oil prices on international markets, the committee recommended allowing the private sector to import fuel derivatives and giving incentives to private firms willing to replace foreign workers with Jordanians.

In regard to the fiscal policy, the committee stressed the importance of not issuing budget supplements this year that would lead to an increase in the budget deficit, in addition to enhancing control measures on public finances. The panel also urged authorities to speed up drafting a law to facilitate the issuance of Islamic sukuk, or bonds.

In a bid to boost investments this year, the group of experts emphasised the need to establish investment projects within two months for applications already submitted and within three months for new schemes.

In terms of short-term proposals, the committee called for reviewing legislation related to the investment environment.

One of the most important recommendations was to establish a development fund that the panel named “Jordan development bank”, with a capital of JD400 million to JD500 million, a public-private sector partnership.

According to the committee experts, the proposed bank could finance mega-projects in the water, transportation and energy sectors, in cooperation with local banks and international finance organisations.

The panel also urged the government to increase development spending in governorates and to put in place a clear and transparent tax system that can enhance collection mechanisms.

There is also a need to establish projects targeting poor areas to combat poverty and unemployment, stressed the panel, which also highlighted the importance of supporting small and medium enterprises by facilitating credit to these institutions.

The committee proposed having the agricultural sector as a top priority among the government’s economic development plans by allocating funds in the state budget to implement agricultural projects that would help achieve food security and combat poverty and unemployment in the countryside.

During the meeting with the committee members, which was attended by several ministers, Bakhit said the country is witnessing a comprehensive review phase through dialogue between the government and civil society organisations. He stressed that 2011 will see bold reforms in all fields.

Commending the efforts of the committee to “diagnose” the challenges facing the economy, Bakhit indicated that the recommendations will be endorsed by the Cabinet and referred to His Majesty King Abdullah.

The prime minister formed the panel on April 30. The members held daily discussions over a one-week period to draft short- and medium-term plans to develop the economy.

jordantimes