Lebanese Dread End to Subsidies

Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
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Lebanese Dread End to Subsidies

Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP

To feed her family, Lebanese mother Sandra al-Tawil sold her fridge and washing machine. Now she fears the cash-strapped state will scrap food subsidies, plunging them deeper into poverty.

Lebanon is locked in its worst economic crisis since the 1975-1990 civil war, with no end in sight.

The value of the Lebanese pound has plunged, driving up the price of crucial imports like food and fuel and triggering small but angry protests.

More than half of Lebanon's population is poverty stricken and relies on subsidies, but a central bank demand for "an immediate plan to ration subsidies" is looming.

"We're already tightening our belts. What will we eat if we can no longer buy rice or lentils?" 40-year-old Tawil said.

Tawil and her husband lived a comfortable life in Dubai before returning to their homeland to open a high-end hair salon in 2019.

But that dream turned to nightmare after the financial crisis and the Covid-19 pandemic hit.

"I had to sell my washing machine and fridge... just to get the minimum of daily bread and pay rent," said the mother of two young children.

Her husband found a job at the start of the year, and the Beit El Baraka charity is helping them out with food and school fees.

But Tawil is still worried, and furious with the political class she blames for the malaise.

"If I see people heading out to protest, I'll be the first to join them," AFP quoted her as saying.

In a country that imports 80 percent of its food, much of the six million population depends on subsidies to get by.

Even without them being lifted, many are already struggling, said Beit El Baraka founder Maya Ibrahimchah.

"There have been many more demands for help over the past four months," she said.

"Those we are helping today are all from the middle class."

The state has poured up to $437 million into subsidies a month, the World Bank estimates, to keep prices in check for bread, medicine, fuel and electricity, as well as around 300 other items since mid-2020.

To counter the pound's drastic devaluation, importers get access to dollars at a preferential rate to ensure they can afford to continue bringing in supplies.

For flour, fuel and medicine, for example, they offer dollars at the official exchange rate of 1,507 pounds to cover most of their cost.

But traders must resort to the black market to cover the difference, where Tuesday the rate hit a record low of 10,000 pounds to the dollar.

As a result, in less than a year the price of a large bag of subsidized bread has risen from 1,500 to 2,500 pounds.

Authorities have remained vague about how the subsidies will be reduced, though meetings are ongoing.

In early December, central bank governor Riad Salameh said it could only fund subsidies for another two months. Later that month, he said two billion dollars were available for them.

At the end of February, the central bank's website showed it had $17.9 billion in foreign currency reserves, yet $17.5 billion of that is the bank's required reserves.

The bank did not respond to AFP's repeated requests for comment.

The UN food agency has warned any subsidy reduction would have "major inflationary repercussions" and "put an unbearable strain on households".

The price of bread could increase by up to three times and fuel by 4.5 times, the World Food Program said, adding it was critical to immediately scale up assistance to the poorest.

Under the government's latest plan, subsidies could be gradually lifted, with financial aid to soften the blow over several years.

The state would first lift subsidies for bread, fuel and around 300 other items, under the plan seen by AFP, before later on reviewing spending in the electricity sector.

To compensate, up to 80 percent of the population would receive handouts -- 50 dollars a month for adults aged over 23 and half for anybody younger.

Those amounts, and the numbers of beneficiaries, would then progressively diminish.

Until then, the authorities have secured $246 million from the World Bank to help 786,000 Lebanese.

But Nasser Jomaa, 52, said he doubted the government would really provide any financial support.

"It's just empty words. We have zero faith in the state," said the driver, who lives with his unemployed 25-year-old son.

As the Lebanese pound has plunged on the black market, he has seen his monthly income drop in value from $1,000 to just $160.

He added that any lifting of subsidies would be "catastrophic".

Already, he said, "we no longer eat meat."



Hamas Expects 'Real Progress' in Cairo Talks to End Gaza War

 Palestinians make their way with belongings as they flee areas in the eastern part of Gaza City, after the Israeli army issued evacuation orders, in Gaza City, April 11, 2025. (Reuters)
Palestinians make their way with belongings as they flee areas in the eastern part of Gaza City, after the Israeli army issued evacuation orders, in Gaza City, April 11, 2025. (Reuters)
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Hamas Expects 'Real Progress' in Cairo Talks to End Gaza War

 Palestinians make their way with belongings as they flee areas in the eastern part of Gaza City, after the Israeli army issued evacuation orders, in Gaza City, April 11, 2025. (Reuters)
Palestinians make their way with belongings as they flee areas in the eastern part of Gaza City, after the Israeli army issued evacuation orders, in Gaza City, April 11, 2025. (Reuters)

Hamas expects "real progress" towards a ceasefire deal to end the war in Gaza, an official said, as senior leaders from the Palestinian movement hold talks with Egyptian mediators in Cairo on Saturday.

The meeting between Hamas and Egyptian mediators come amid ongoing violence in Gaza, as the Israeli military intercepted three projectiles fired from the territory and launched air strikes and artillery shelling on several areas. No injuries were reported, the military said in a statement.

The scheduled talks in Cairo also come days after US President Donald Trump suggested an agreement to secure the release of hostages held in Gaza was close to being finalized.

A Hamas official told AFP that the Palestinian group anticipated the meeting with Egyptian mediators would yield significant progress.

"We hope the meeting will achieve real progress towards reaching an agreement to end the war, halt the aggression and ensure the full withdrawal of occupation forces from Gaza," the official familiar with the ceasefire negotiations told AFP on condition of anonymity, as he was not authorized to speak publicly on the matter.

The delegation will be led by the group's chief negotiator Khalil al-Hayya, he said.

According to the official, Hamas has not yet received any new ceasefire proposals, despite Israeli media reports suggesting that Israel and Egypt had exchanged draft documents outlining a potential ceasefire and hostage release agreement.

"However, contacts and discussions with mediators are ongoing," he added, accusing Israel of "continuing its aggression" in Gaza.

The Times of Israel reported that Egypt's proposal would involve the release of eight living hostages and eight bodies, in exchange for a truce lasting between 40 and 70 days and a substantial release of Palestinian prisoners.

President Trump said during a cabinet meeting this week that "we're getting close to getting them (hostages in Gaza) back".

Trump's Middle East envoy Steve Witkoff was also quoted in an Israeli media report as saying "a very serious deal is taking shape, it's a matter of days".

Israel resumed its Gaza strikes on March 18, ending a two-month ceasefire with Hamas.

Since then, more than 1,500 people have been killed, according to the health ministry in the Hamas-run territory to which Israel cut off aid more than a month ago.

Dozens of these strikes have killed "only women and children," according to a report by UN human rights office.

The report also warned that expanding Israeli evacuation orders were resulting in the "forcible transfer" of people into ever-shrinking areas, raising "real concern as to the future viability of Palestinians as a group in Gaza".

On Saturday, Israel continued with its offensive.

Gaza's civil defense agency reported an Israeli air strike on a house in Gaza City on Saturday morning.

AFP footage of the aftermath of the strike showed the bodies of four men, wrapped in white shrouds, at a local hospital, while several individuals gathered to offer prayers before the funeral.

The Israeli military, meanwhile, said its air force intercepted three projectiles that were identified as crossing into Israeli territory from southern Gaza on Saturday.

The ceasefire that ended on March 17 had led to the release of 33 hostages from Gaza -- eight of them deceased -- and the release of around 1,800 Palestinian prisoners held in Israeli jails.

The war in Gaza broke out after Hamas's October 7, 2023, attack on Israel. It resulted in the deaths of 1,218 people, mostly civilians, according to an AFP tally based on Israeli official figures.

Militants also took 251 hostages, 58 of whom are still held in Gaza, including 34 the Israeli military says are dead.

Gaza's health ministry said on Friday that at least 1,563 Palestinians had been killed since March 18 when the ceasefire collapsed, taking the overall death toll since the war began to 50,933.