Algerian government bets on imports’ reduction

Algerian government headed by Abdul Majeed Tabboun is betting on reducing the import bill to 10 billion dollars before the end of 2017, where the Ministry of Finance issued its instructions to Algerian banks to stop their settlements for importing a number of food products until their owners obtain importing licenses. This decision came after the import bill had exhausted the country's general budget in light of the continued erosion of the exchange reserves.
Tabboun’s first decision after heading the Algerian government was to stop “luxuries” importing and to prevent the import of a large quantity of materials destined for national consumption to avoid unnecessary storage. Businessmen in the field of export and import are also forced to deal with importing licenses.
He also stressed on the importance to organize the local market and the local materials. He passed “Import quotas program” when he was the Minister of Commerce to control the external trade and to reduce the import bill. This decision came within the austerity program imposed by the Algerian government after the collapse of oil prices.
Economic expert and professor Farhat Ait Ali said in a statement to “Arab Today” that this decision was accurate especially during the hard financial situation faced by Algeria after the collapse of oil prices and the continuation of exchange reserves erosion, adding that, the new economic plan imposed by the former government of Abdul Malik Sallal which included 6 recommendations to face this economic crisis in Algeria, discussed the reduction of imports bill.
Farhat also said that, this decision has its dangerous fallouts that will affect the social life in the future, such as using monopoly policy, bankruptcy of hundreds of dealers, and the raising prices in local markets due to lack of supply and high demand, while this decision brings the price speculators back to the forefront after the Algerian government fought a war against them.