At the King Hussein Convention Center on Dead Sea shores, Prime Minister Bisher Khasawneh on Friday officiated the “A Year on Modernization” forum. The forum is a grand ensemble of over 600 stakeholders, from policymakers to industry specialists, marking the one-year milestone since the inception of the economic modernization vision and the roadmap to revamp the public sector. In his keynote address, the Prime Minister emphasized that the holistic modernization blueprint is anchored in its trifold foundation: political, economic, and administrative. Central to this vision has been the commitment to robust partnerships with the private sector, a key player in orchestrating these sweeping changes. Khasawneh extended gratitude to both domestic private entities and the international Arab ambassadors, underscoring their vital roles in shaping this expansive vision and supporting King Abdullah II’s overarching reform agenda. “We convene today, a year enriched with experience, with a purpose-driven focus on reflection and forward momentum. Our unwavering dedication to inclusivity, transparency, and candor aids us in gauging our progress, laying down the path ahead, and devising strategies to surmount challenges,” expressed Khasawneh. Highlighting the meticulous planning underpinning the modernization drive, the Prime Minister elaborated on the crucial instruments devised to expedite its realization. Chief among these were the executive programs for economic rejuvenation and public sector refinement slated for 2023-2025. Assuring continuity, Khasawneh announced a budgetary allocation of 670 million dinars for economic evolution and a further 45 million dinars to upgrade the public sector, with provisioned allocations for subsequent years. Khasawneh lauded the integration of technology and analytics in this transformative journey. With an intricate electronic system to track progress, stakeholders can now monitor work progression and evaluate performance metrics for various initiatives and projects. Additionally, a specialized unit within the Prime Ministry, coupled with 20 corresponding units in various ministries, has been instituted to streamline and oversee execution. Delving into the specifics of this ambitious journey, Khasawneh recounted a tapestry of accomplishments. From overhauling customs tariffs to pioneering efforts in energy cost reductions for productive sectors and facilitating the influx of natural gas to industrial zones, the efforts have been monumental. Recognizing the backbone of the Jordanian economy, Khasawneh accentuated the amplification of support programs targeting Small and Medium Enterprises (SMEs) known for their employment-generation prowess. Amidst these sweeping changes, Jordan’s association with the International Monetary Fund (IMF) stands strong. Khasawneh expressed national pride over successfully completing six reviews under the extended financing program, backed by the IMF’s affirmation of Jordan’s robust macroeconomic landscape. Ending on an optimistic note, he provided a snapshot of Jordan’s thriving macroeconomic indicators. With a GDP growth rate of 2.0% in the final quarter of 2022, national exports scaling up by 2.3%, and a reduction in the trade balance deficit, the figures spoke of an economy on the ascent. Most notably, investments under the national law surged impressively by 48% in 2023’s first quarter compared to the preceding year. Delving deeper into the economic parameters, Khasawneh shared that foreign investment for Q1 2023 amounted to 200 million dinars, with an ambitious target of 785 million dinars, equivalent to one billion dollars, set for the entire year. Tourism revenue, a significant pillar of Jordan’s economy, witnessed a 50% spike in the first seven months of the year, accumulating $4.2 billion. On the fiscal front, a trim in the budget deficit is underway, with an objective to reduce it from the 3.7% of 2022 to 2.9% this year a commendable effort when juxtaposed with the 6.2% of 2019. Aiming for sustainable economic growth, the target for domestic revenues has been set at 9.6 billion dinars, an increase from the 8.9 billion of 2022 and the 7.8 billion in 2019. A potent testament to Jordan’s economic strength is the robust foreign currency reserve, standing at approximately $17.4 billion, ensuring coverage for imports for nearly eight months. Khasawneh emphatically reiterated the government’s unyielding respect for the Central Bank’s independence. Such commitment and the Central Bank’s astute monetary policies have not only fortified the Jordanian dinar but also buttressed Jordan’s credibility on the global financial stage. These strides are manifest in the positive rating adjustments by renowned agencies like MOODYs and FITCH, even as some countries experienced downgrades. Khasawneh delineated measures taken to mitigate inflationary pressures spurred by global energy and food price hikes. The inflation rate remains contained at 2.7% until July, with a year-end target of 3.8%. The transparent reflection of global oil derivative prices on local ones, he accentuated, forms a cornerstone of their structural reforms. Adjustments in sectors like transport have also been implemented, with complete tax exemptions introduced for those updating their trucks. On the public sector modernization front, the government has impressively automated and digitized 40% of its services, translating to 960 services. This digital push saw the (Sanad) app’s user rating soaring from 1.8 to 4.8, encouraging citizens to embrace their digital identities. Comprehensive government service centers are being rapidly operationalized across the country, marking a shift towards decentralized access to services. Institutional reforms are also in full swing. New ministries, like the Ministry of Government Communication, have been established, while others, like the Ministry of Investment, are undergoing transformative restructuring. A unique governance model is being introduced to enhance regulatory bodies, and the Civil Service Bureau will soon metamorphose into the Public Service and Administration Authority. Khasawneh emphasized the government’s dedication to fostering a conducive legislative environment for the private sector. Several economic laws, including those related to investment, work, social security, and partnerships, have been approved. Drafts of pivotal laws like the personal data law are nearing completion, underlining Jordan’s commitment to both individual rights and technological investments. The Prime Minister fervently discussed the modifications to the real estate property law, championing it as a catalyst for economic growth and investment attraction. These amendments, he asserted, ensure partnerships anchored in good governance and devoid of risks. Continuing the legislative momentum, the government is set to review laws related to the Amman financial market, insolvency, and commercial contract enforcement. Addressing concerns about the Amman financial market’s vitality, Khasawneh advocated for innovative ideas to rejuvenate it, emphasizing its crucial role in bolstering the national economy. In a candid moment, Khasawneh acknowledged criticisms faced for stating the evident resource constraints of Jordan compared to other nations. However, he remained optimistic, expressing hopes for prosperous outcomes from exploratory mining agreements, including the search for precious metals, liquefied gas, and petroleum. With remarkable performance in phosphate and potash mining last year, he ended on a hopeful note, envisioning Jordan’s ascent to the league of resource-rich countries.
Source: Jordan News Agency