Construction and Infrastructure Minister Dr. Abdullah Muthalib has stated that the biggest problem the Maldives is facing is having to spend more foreign currency than it receives, adding that the Free Trade Agreement with China will help resolve the crisis.

Speaking on the economic policies of President Dr Mohammed Muizzu, the Minister said the country is facing many difficulties due to the lack of foreign currency.

Noting that most of the Maldives' foreign currency earnings are spent on oil imports and repayment of state debts, the minister said the Free Trade Agreement with China, which comes into force in September, will resolve the foreign currency crisis.

"The free trade agreement will develop more of the country's industries, fisheries, and other fisheries-related industries, and we will be able to export goods to China at zero tariffs and earn more foreign currency. That is one of the biggest benefits," The Minister said.

The minister said the free trade agreement would also end reliance on the dollar alone.

The minister added that the government is also working on a free trade agreement with India.

China's Free Trade Agreement (FTA) will be implemented before the end of September, he said. The announcement was made at the 59th Independence Day celebrations held at the Social Center on Friday night.