Sydney - Middle East Times Int’l: Representative Waddah Al-Sadiq confirmed on the “X” platform, saying: “We met with the Executive Director of the World Bank in the Middle East, Abdulaziz Ibrahim Al-Mulla, and we discussed during a lengthy meeting all the details related to the World Bank’s support for Lebanon and several projects and all the requirements imposed on Lebanon.

It is noteworthy that last February, the Board of Executive Directors of the World Bank Group yesterday approved a project worth $34 million to help Lebanon restore the basic functions of public financial management to support the collection of domestic revenues and allocate and use public resources in an accountable manner. The financial management project will help provide public services to citizens and pave the way for a sustainable economic recovery.

More than four years after the severe economic and financial crisis, Lebanon's public finances have witnessed a significant deterioration, contributing to the collapse of public service delivery. This deterioration exacerbated challenges that existed long before the crisis: weak institutional capacities, lack of transparency, and structural issues that contributed to weak financial governance systems. Between 2018 and 2022, real GDP contracted by 34%, eliminating more than 15 years of economic growth. Since the beginning of the crisis in 2019, the Lebanese pound has lost more than 98% of its value. Triple-digit inflation (100% and above) and currency depreciation have eroded public sector salaries, which have been cut sharply and employees are unable to afford fuel to travel to work and meet their basic needs. A large number of employees have left their work in the public sector, heading either to the private sector where salaries have been partially adjusted or in search of job opportunities outside the country, resulting in a significant gap in skills and employee availability in the public sector. As for employees continuing in public service, their rates of absenteeism from work are considered high, as most of them work one day a week. This severely affects the government's ability to continue basic administrative work. The value of customs duties and tax revenues also declined sharply with the crisis, making domestic revenues insufficient to achieve economic stability, sustain public finances, and fund vital social services.