Sudan to Raise Import Duties on 130 Items

Sudanese Customs Headquarters (Sudanese Customs Authority)
Sudanese Customs Headquarters (Sudanese Customs Authority)
TT

Sudan to Raise Import Duties on 130 Items

Sudanese Customs Headquarters (Sudanese Customs Authority)
Sudanese Customs Headquarters (Sudanese Customs Authority)

The Sudanese authorities have raised customs duties on 130 commodities, including gasoline and wheat, to cover the expected deficit in this year's budget.

The tariff hike, which immediately entered into force, would increase the prices of many imported and local goods amid the country's stagflation.

The Customs Authority stated that the amendment of customs categories came following the government's decision.

The increase in customs duties for transport vehicles of various weights ranged between 25 and 40 percent, while electric cars were exempted from any customs duties, and no new amendments were made to the customs of four-wheel drive vehicles.

Customs increases affected meat, fish, fruits, spices, and luxury goods, between 20 and 40 percent.

In February, Sudan's Sovereignty Council and the government approved the 2023 budget after a delay of over a month.

Budget revenues amounted to 7.363 trillion Sudanese pounds, and public spending amounted to 8.196 trillion pounds, with a deficit of 1.4 percent of GDP.

The state seeks to increase revenues and bridge the budget deficit by expanding the tax umbrella instead of raising taxes and rationalizing government spending.

The inflation rate in January dropped to 83 percent, compared to December last year, which recorded 87.32 percent.

The US froze aid worth $700 million and European Union countries announced the suspension of any financial assistance after Sudan’s military coup in October 2021.

The World Bank also suspended all aid to Sudan and halted decisions on any new operations after the military seized power.

The funds allocated to help civil transition are estimated at two billion dollars, in addition to supporting the budget and large economic projects that contribute to achieving estimated growth in the coming years.

The World Bank and the International Monetary Fund (IMF) had granted Sudan financial support to reduce its external debt by half under the Heavily Indebted Poor Countries (HIPC) initiative. The debt was reduced to $28 billion.



IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
TT

IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.