Kuwait To Present Economic Plan

The Kuwaiti government on Saturday said it would present to Parliament an economic reforms plan which could be difficult for low earners. A secret parliamentary session held the same day focused on the countrys weakening finances due to a drop in world oil prices, reviving efforts to introduce economic reforms and liberalise the stock market. The drop in world oil prices since early 1998 has forced the government to order a 25 per cent cut in expenditure for the rest of 1997-98 (July-June) and triggered the formation of government committees to study reforms amid growing calls by free-market advocates to liberalise the economy. The cabinet has proposed a 4.86 billion dinar ($5.76 billion) budget for 1998-99 with a 1.73 billion ($15.93 billion) dinar deficit. Economists and traders have said a failure to introduce reforms could have a negative effect on the governments credibility and the stock market.