Minister Mohamed Saeed, the Minister of Economic Development and Trade, has strongly criticized the previous administration’s economic policies, blaming the Maldives’ current financial difficulties and rising consumer prices on “flawed policies” enacted during the Covid-19 pandemic. He stated that the former government’s economic mismanagement led to “unprecedented debt in 40 years.”
Saeed highlighted several decisions that he argued undermined the country’s financial stability. He noted that when the Maldivian Democratic Party (MDP) took office in 2018, the state’s reserve was USD 1 billion, with the Sovereign Development Fund holding over USD 250 million. Within a year, the national budget had increased to USD 3.24 billion, up from USD 1.82 billion. He also criticized the management of pandemic-related aid, stating that the actual expenditure was disproportionately low despite receiving billions of Rufiyaa for Covid-19 recovery.
The minister further criticized the former administration’s monetary policy, accusing officials of exacerbating inflation through central bank financing, or “printing money.” He cited statistics showing that USD 518.15 million was printed during President Solih’s term. Saeed also pointed out that public discourse at the time reflected growing unease over rising prices, with reports widely covered in Maldivian newspapers between 2021 and 2023.
In response to the economic fallout, Saeed said the current administration, led by President Dr. Mohamed Muizzu, is taking measures to stabilize the economy and curb inflation. These measures include establishing the Maldives Industrial Free Zone to facilitate bulk storage and improve distribution networks. Additionally, an Essential Commodity Index is being developed to track prices for 162 items to identify price trends and enable timely interventions.
