Fall of oil prices not likely to impact development plans

Financing of the projects of the next national development plan will not be affected by falls of oil prices, Minister of Social Affairs and Labor and Minister of State for Planning and Development Hind Al-Sabeeh said.
Half the financing of these projects will come from the local private sector, through partnership between it and the public sector, Al-Sabeeh told reporters on the sidelines of a development seminar that kicked off here on Monday.
Today's seminar was held under "Impact of oil prices falls on reality and future development in Kuwait." She said that enforcement of the privatization law is likely to boost participation of the private sector in economic activities, noting that its executive regulation is not being looked into by the relevant legal committee.
According to the Minister, the first annual plan of the mid-term 2015-2016/2019/2020 will be submitted to the National Assembly on Tuesday after being approved by the cabinet and the Supreme Council for Planning and Development last week.
It is also the first plan to be referred to the parliament before the 2015-2016 draft budget, and it includes major projects such as the underground, completion of the Kuwait University, Jaber Hospital and environmental fuel, she noted.
On today's dialogue, Al-Sabeeh said participants will exchange views on what steps the government has to take. Recommendations will be submitted to the relevant authorities.
Such seminars are to continue all through the year, the minister pointed out.
Addressing the gathering, Advisor at the Amiri Diwan, Youssef Al-Ibrahim, a former Minister of Planning and Financing, ruled out any political dimension or a conspiracy behind the decline of oil prices.
He added that the repercussions of the 2008 global financial mayhem still throw negative shadows on oil prices.
Al-Ibrahim said the low price rates will take toll on producer countries that could be forced to resort to their reserves accumulated over past years to finance public projects and bridge any potential budget deficit.
According to the Amiri Diwan Advisor, countries of the region have so far lost USD 1.3 billion owing to the falling oil prices.
He also noted that the state budget is the subject to huge pressure due to the decline in revenues.
Source: KUNA