Tunisian Govt, Unions Agree to Talks on IMF Economic Reforms

Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo
Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo
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Tunisian Govt, Unions Agree to Talks on IMF Economic Reforms

Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo
Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo

Tunisia's government and both its main labor and commerce unions agreed on Friday to start talks on Monday over economic reforms required by the International Monetary Fund (IMF) for a rescue program.

State news agency TAP reported that Prime Minister Najla Bouden, UGTT labor union chief Noureddine Taboubi and UTICA commerce union chief Samir Majoul had agreed a "social contract" to tackle national challenges, citing a government statement.

The labor union, which represents a vast syndicate of workers, has been a staunch critic of IMF economic reforms proposed by the government, including subsidy cuts, a public sector wage freeze and the restructuring of state-owned companies. It previously said, such reforms would increase the suffering of Tunisians and lead to an imminent social implosion.

Tunisia is seeking $4 billion in IMF support amid the economic fallout from the coronavirus pandemic and the war in Ukraine, though diplomat sources told Reuters any IMF program approved would be unlikely to reach that level.

The IMF wants the UGTT, a powerful union that has a million members and has previously paralyzed parts of the economy in protest, to formally agree to government reforms.

Efforts to secure the IMF bailout have been complicated by Tunisia's political upheavals since President Kais Saied seized most powers a year ago, shutting down parliament and moving to rule by decree.

Last month, he pushed through a new constitution formalizing many of the expanded powers he has assumed in a referendum. Official figures showed that 31% of Tunisians took part, but opposition groups have rejected the figure, calling it inflated.



Bahrain Inaugurates Bapco Refinery’s Modernization Project

Bahrain’s King Hamad bin Isa Al Khalifa during the inauguration of the Bapco Modernization Project (BMP). Photo: BNA
Bahrain’s King Hamad bin Isa Al Khalifa during the inauguration of the Bapco Modernization Project (BMP). Photo: BNA
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Bahrain Inaugurates Bapco Refinery’s Modernization Project

Bahrain’s King Hamad bin Isa Al Khalifa during the inauguration of the Bapco Modernization Project (BMP). Photo: BNA
Bahrain’s King Hamad bin Isa Al Khalifa during the inauguration of the Bapco Modernization Project (BMP). Photo: BNA

Bahrain’s King Hamad bin Isa Al Khalifa has inaugurated the Bapco Modernization Project (BMP), which stands as the largest strategic undertaking in the Kingdom’s history and a pivotal development in the energy sector. It is expected that production capacity will reach 400,000 barrels per day.

The inauguration took place on Thursday in the presence of Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, and on Bahrain’s 53rd National Day celebrations and the Silver Jubilee of the King’s accession.

The King underscored the significance of BMP in fostering national development and sustainability, aligning with Bahrain’s ambition to maximize the value of its natural resources for economic and societal advancement.
"This landmark project reflects our enduring commitment to sustainable growth, utilizing the Kingdom of Bahrain’s natural energy resources to power economic progress and development," he stated.

King Hamad highlighted the BMP’s role in driving the Kingdom’s energy transition strategy, emphasizing the government’s steadfast dedication under the leadership of the Crown Prince and Prime Minister to advancing economic recovery through strategic investments in high-potential sectors.

Group Chief Executive Officer of Bapco Energies Mark Thomas and Dr. Abdulrahman Jawahery, Chief Executive Officer of Bapco Refining, highlighted during a joint press conference held on the sidelines of the inauguration of BMP, that the initiative marks a significant step towards enhancing Bahrain’s production capacity in oil refining.

They noted that the project is expected to substantially support the national economy and increase revenues, representing a strategic step to strengthen Bahrain’s economy by creating new jobs and improving the quality of petroleum products, with a focus on employing Bahrainis in the project.

They also expressed their optimism about the strategic project, which will serve as a foundation for launching new initiatives to enhance Bahrain's position as a leading investment destination. It is expected that production capacity will reach 400,000 barrels per day, representing a 42% increase.

Jawahery highlighted the historical cooperation between Bahrain and Saudi Arabia, commending the partnership between Bapco and Saudi Aramco. "We currently import 220,000 barrels per day of Saudi crude oil, and with the project’s completion, imported quantities will exceed 320,000 barrels per day. This sustainable cooperation spanning more than 70 years serves as a model for Gulf integration," he said.