DUBAI: Yemen’s president has ordered a raft of austerity steps, including a review of state-owned companies’ viability and curbs on foreign travel by government officials, to ease pressure on the impoverished state’s crumbling public finances.
Sanaa has struggled to pay public sector salaries and finance food and energy imports, which has led to power cuts and fuel shortages as a fight against Al-Qaeda militants and other rebel groups undermines the state budget.
In a statement late on Wednesday, the government described President Abed Rabbo Mansour Hadi’s belt-tightening package as urgent.
Among the measures, recruitment has been frozen for all state institutions and procurement of cars has been halted. International travel for senior officials will be restricted, along with the renting of new offices and expense claims.
“Government officials, including ministers, are to be limited to a maximum of four overseas trips a year. The maximum duration of stay during official travel should not exceed five days,” the statement said.
“State officials are no longer permitted to travel first or business class,” it added.
The government did not say how much money it expected to save with the austerity drive, or elaborate on how it would conduct its review of state firms’ economic viability and when the results might be seen.


