CAIRO — Libya's government is considering a plan to fire more than a third of its
civil service in an effort to promote private enterprise.
Officials said the government in Tripoli has drafted a program to
dismiss 400,000 government employees. They said the plan would ensure
salaries for the laid-off civil servants for at least three years.
On Jan. 22, Libya completed a Cabinet reshuffle, replacing its finance,
economy and justice ministers, Middle East Newsline reported. The new finance minister was identified as
Mohammed Ali Al Houeij.
"The objectives of this budget are to increase Libya's standard of
living by five percent this year and promote productive activities," Libyan
Prime Minister Al Baghdadi Ali Al Mahmoudi said.
In an address to parliament on Jan. 21, Al Mahmoudi said the dismissals,
planned as part of the 2007 budget, would reduce the state deficit. The
prime minister said the public sector has ballooned over the last few years
and cost four billion dinars, or $3.13 billion, in 2006.
Libya has drafted a 31 billion dinar budget, or $24 billion, for 2007.
The budget was meant to stimulate the private sector, particularly Libya's
crude oil and natural gas industry, and improve social services.
Unemployment has been reported at 13 percent.
"Each dismissed public employee will be given his full salary for three
years or granted up to 50,000 dinars [$39,000] in loans for anybody who
wants to start his own business," Al Mahmoudi said.
Officials did not detail the 2007 budget. Libya has sought to become the
aircraft maintenance hub of North Africa and has been mulling the purchase
of advanced Rafale fighter-jets.
