Sudan Loses 40% of Revenues due to COVID-19 Pandemic

People stand in line in front of a bakery in Khartoum. (AFP)
People stand in line in front of a bakery in Khartoum. (AFP)
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Sudan Loses 40% of Revenues due to COVID-19 Pandemic

People stand in line in front of a bakery in Khartoum. (AFP)
People stand in line in front of a bakery in Khartoum. (AFP)

Sudan’s revenues dropped 40 percent after the outbreak of the COVID-19 pandemic, as the government continues to subsidize wheat and medicine, estimated at millions of dollars annually.

The Sovereign Council and the government approved in a joint meeting the revised budget of 2020 with a decrease in public revenues and increase in spending.

Government spokesman, Information Minister Feisal Mohamed Saleh said that the changes in the budget were necessary to mitigate the negative impact of the spread of COVID-19 on the economy.

The constitutional document governing the transitional period in the country granted the Sovereign Council and the cabinet the right to pass laws until the Transitional Legislative Council is formed.

The government approved a gradual adjustment of the exchange rates of the dollar and the customs rate of the dollar over a period of two years “until the real price has been reached”.

Observers said the move comes within the government’s attempt to float the national currency.

On Monday, the Sudanese pound traded at SDG143 to the dollar in the black market, compared to the official exchange rate of SDG55 set by the Central Bank.

The transitional authority expects these measures to lead to an 8-point growth by the end of this year, which would also help in controlling the inflation that reached 136.36 percent in June.

The government allowed the private sector to import oil and gasoline to help resolve the fuel crisis, which has been growing for months.

Economic expert Khaled al-Tijani explained that many countries were forced to set austerity measures and reduce expenditures to counter the effects of the pandemic, but the Sudanese government increased expenditures, most of which were allocated to state employee wages.

Speaking to Asharq Al-Awsat, Tijani estimated that the deficit announced by the government would reach SDG254 billion, adding that it would have to print more money to finance the deficit, which would lead to high inflation rates and a devaluation of the currency.

The International Monetary Fund (IMF) predicted Sudan’s economy to shrink by 8 points due to the pandemic, in addition to the economic and social repercussions which it described as horrific.

The government is determined to resolve the economic crisis that grew under the ousted regime, however, its policies were so far unsuccessful in alleviating the deteriorating living conditions.

In July, Prime Minister Abdalla Hamdok announced a cabinet reshuffle including the Finance Minister, Ibrahim al-Badawi, whose extensive relations with international institutions helped organize an international conference of Sudan's friends to provide the necessary economic support.

The Sovereign Council and the government approved in 2019 the budget, with revenues amounting to SDG568.3 billion, while current expenditures amounted to SDG584.4 billion with a deficit of about SDG16.1 billion.



US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
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US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo

The United States is close to clinching several trade deals ahead of a July 9 deadline when higher tariffs kick in, US Treasury Secretary Scott Bessent said on Sunday, predicting several big announcements in coming days.

Bessent told CNN's "State of the Union" the Trump administration would also send out letters to 100 smaller countries with whom the US doesn't have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.

"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said.

Bessent denied that August 1 was a new deadline for negotiations. "We are saying this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he told CNN, Reuters reported.

The US Treasury chief said the Trump administration was focused on 18 important trading partners that account for 95% of the US trade deficit. But he said there had been "a lot of foot-dragging" among countries in getting closure on a trade deal.

He declined to name countries that were close to a trade agreement, adding, "because I don't want to let them off the hook."

Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.

Since taking office, the US president has set off a global trade war that has upended financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.

Trump on April 2 announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. The news roiled financial markets, prompting Trump to suspend all but the 10% base rate for 90 days to allow more time for negotiations to secure deals, but the process has proven more challenging than expected.

That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1.

Bessent, asked about the 70% rate, referred back to the April 2 list, but that did not include such high rates.