“This Is Economic Ruin” Says Fayyaz

Former Minister of Economic Development Fayyaz Ismail has launched a sharp public critique of the government’s economic management following the resignation of Ahmed Inaz as Chairman of the Pension Administration Office.

In a post on X, Fayyaz accused the administration of undermining constitutional governance while steering the country toward economic distress. He described government claims of fiscal and state-owned enterprise reform as misleading, arguing that spending has continued to outpace revenue despite rising state income.

Fayyaz highlighted several concerns, including lower-than-budgeted grant receipts last year, a more than MVR 1 billion increase in salaries and wages in 2025, outstanding state payments owed to businesses, stalled infrastructure projects, and rising costs borne by households. He also criticised foreign exchange policy failures and warned that newly issued debt and changes to the pension board would alarm international investors.

Referring to the prospect of borrowing at interest rates exceeding 14 percent, Fayyaz characterised the situation as “distress borrowing” rather than genuine refinancing, attributing high yields to market concerns over policy failures and growing economic uncertainty.

He said the current debt refinancing challenges were avoidable and the result of mismanagement and unchecked expansion of the state.