KUWAIT CITY, Jan 3: Kuwait economic situation needs immediate adoption of comprehensive economic reforms that eliminates the use of monetary policies to solve the country’s economic difficulties, said top Kuwaiti economist Muhammad Al Duaij.

Al Duaij said Kuwait faces the challenge of creating 72,000 jobs for citizens over the next five years and 170,000 job opportunities over the next 15 years. He said this situation makes it imperative to start economic reforms immediately, otherwise Kuwait would have to liquidate some of its assets and impose taxes on services.

Al Duaij pointed out that delaying the privatization law would lead to the serious consequences to the country’s economy, and expressed fears that Kuwait may be forced to devalue the dinar.

He said privatization would protect the public funds and the rights of Kuwaiti manpower. Al Duaij said that 43 per cent of Kuwaitis are youths who can be productive, and called on the government to diversify the country’s sources of income so as to lesson its dependence on oil as the main source of revenue.

He said privatization is the only solution to eliminate budget deficits and will lift the heavy burden on the national budget.

Kuwait economy mostly stands on the oil revenue, which, most economists feared, would lead to the serious consequences in future. Economists are of the opinion that government should immediately adopt economic reforms to lesson the dependence on oil revenue.