Finance Minister Mohamed Zareer has stated that the Maldives is seeking assistance from international financial institutions to strengthen state reserves and implement economic reform measures, addressing economic challenges driven by rising oil prices and shifts in tourism revenue.

In an interview with Reuters, Zareer noted that as an import-dependent nation for all its fuel, the surge in oil prices stemming from Middle Eastern conflicts has caused energy subsidy expenditures to triple this year. Consequently, the state budget deficit risks rising from the previously projected 7.1 percent to 9 percent. The minister emphasized that the government's current primary focus is reducing state expenditures and executing fiscal consolidation efforts.

However, Zareer stated that support from the World Bank and other international partners is urgently needed to further stabilize the economy. Despite a temporary slowdown in economic momentum, the government projects economic growth to reach 3.8 percent next year and 6.8 percent by 2028. To support these targets, the World Bank is slated to provide USD 250 million over the next three years, while a USD 1.5 billion framework agreement was signed with the International Islamic Trade Finance Corporation (ITFC) last month.

Additionally, the minister noted that efforts are underway to boost tourism by securing additional aircraft for the national airline and expanding flights to new markets such as Australia. The government's broader objective is to diversify the economy and increase renewable energy utilization to 33 percent by 2028, Zareer added.