Nasheed: Businesses facing difficulties importing goods leading to declined profits

MDP’s Chairperson, former president Mohamed Nasheed, on Wednesday night, that businesses are facing significant difficulties in importing goods and settling utility bills, resulting in a substantial decline in profit.

Speaking at an MDP gathering tonight, Nasheed strongly criticised the economic and financial policies of the current administration. He said the Maldivian economy is deteriorating by the day, with the exchange rate of the US dollar driving prices to unprecedented levels and placing considerable strain on both citizens and businesses.

Nasheed further noted that businesses are struggling to settle bills and complete import procedures, which he said has had a severe impact on their profitability.

"Business owners are in a tight spot. They cannot import goods, and they are unable to process TT (Telegraphic Transfer) payments. Their profits have plummeted significantly," Nasheed said. 

Reflecting on the country’s financial situation, he alleged that the government is repaying foreign debts without adequate planning by exhausting available dollar reserves at once. As a result, he claimed that the country is now facing a severe shortage of US dollars.

Nasheed also criticised the government’s efforts to secure foreign currency from the tourism sector. He noted that after initially proposing a mandatory exchange of USD 500 per tourist, the government revised the requirement to 20 percent and subsequently to 40 percent. When these measures failed to generate the desired funds, he said the government attempted to require foreign tour operators to pay GST, but that no significant revenue was generated.

Questioning the government’s transparency, Nasheed alleged that even the Parliament lacks clarity regarding the details of agreements for government-run projects and the progress of their implementation.

Nasheed said President Muizzu’s administration is losing public support as the country faces a deepening crisis. He asserted that such a government cannot deliver the prosperity and well-being citizens deserve, while pledging that the MDP would return to power to serve the Maldivian people once again.