Muthalib says war‑driven cost pressures require timeline changes but projects will continue

Housing Minister Dr. Abdullah Muthalib says the ongoing war in the Middle East is hampering the government’s development projects, with rising costs and supply difficulties affecting multiple sectors.

Speaking at a press conference on Thursday, Muthalib said oil prices have doubled since the conflict began on February 28, creating financial pressure across the government’s project portfolio. He added that difficulties in securing construction materials have slowed some projects and affected the wider construction sector.  

The minister said dredging works and port construction projects are among those facing delays due to the disruptions.

Despite the challenges, Muthalib said the government’s priority is to continue all projects in a cost‑effective manner. “Our aim is to implement projects in a cost-effective manner,” he said.

He added that the government is preparing to adjust project timelines to manage the impact of rising costs and supply constraints.

Muthalib noted that STO is working to ensure continuous availability of construction materials, and said the government is giving top priority to maintaining uninterrupted delivery of basic services to the public.

Late last month, Finance Minister Moosa Zameer said the government was considering suspending some projects to reduce expenditure due to the economic impact of the war. He also said additional borrowing would be required if such measures were taken.  

The government has allocated MVR 9.2 billion in capital expenditure this year for roads, airports and ports. According to the Finance Ministry, MVR 1.08 billion has been spent so far this year.