Lebanon's people will have to make sacrifices, Prime Minister Najib Mikati said on Monday, as the country's new government met for the first time.
Mr Mikati recently formed an administration, ending 13 months of caretaker government during which political leaders fought over ministerial posts as the economy collapsed.
“The country requires exceptional measures,” Mr Mikati said from the presidential palace in Baabda, a Beirut suburb.
“We all have to sacrifice.”
The Cabinet must now decide on a plan to save the country from a severe economic crisis and enact reforms crucial to unlock billions of dollars in loans and debt relief.
A view of Lebanon's capital, Beirut, with the lights on only in some buildings. Lebanese rely on highly polluting diesel generators run by private neighbourhood operators to make up for shortfalls in electricity supply from the state utility. EPA
A fisherman uses a headlamp at the seaside corniche in Beirut, Lebanon. EPA
A vendor sells LED balloons in full darkness at the corniche in Beirut. EPA
The near collapse of the national grid has increased the duration of power cuts across Lebanon. EPA
Residents of Beirut are experiencing power cuts of up to 20 hours a day. EPA
Mr Mikati, a telecoms billionaire, said his government would “deal with the issue of fuel and medicine to stop the humiliation of people".
Lebanon has been suffering from severe shortages of imported goods such as petrol and medicine, which are subsidised by the government. The central bank's foreign-currency reserves have dwindled since an economic crisis hit in late 2019, severely restricting the imports of subsidised products.
People have had to queue for hours at petrol stations to fill their tanks, with many calling them “lines of humiliation".
The shortage of fuel has also affected the supply of electricity, both from state-owned power plants that run on fuel oil and diesel-powered private generators that make up the shortfall in the state supply. Extended power cuts have affected the functioning of hospitals, as well as businesses such as food suppliers.
Political parties that have been widely blamed for the present crisis chose most of the 24 new ministers.
Mr Mikati said the government would restart negotiations with the International Monetary Fund this week. Securing international funding is critical to addressing an economic crisis that, according to the UN, has pushed nearly 80 per cent of the population below the poverty line.
The Cabinet is also expected to lift subsidies, which Mr Mikati has said the country can no longer afford. Ministers must also prepare for parliamentary elections in eight months' time.
President Michel Aoun, an ally of the Iran-backed Hezbollah movement that holds sway over Lebanese politics, led the Cabinet meeting.
Mr Aoun said he hoped the new government would restart negotiations with the IMF. Talks on an assistance package broke down last year after disagreements between the government, Parliament and the central bank.
At the end of the Cabinet meeting, the ministers formed a committee that will draft an outline of the government's policies.
They must submit the plan to Parliament, which needs to approve it for the government to be sworn in.
The government has one month to submit its plan, a presidential spokesman said.
“The first meeting took place today but they will need to meet many more times to get the plan done,” he said.
This step is seen as a formality because Lebanon's major political players, including Parliament Speaker Nabih Berri, picked the new ministers.
Health Minister Firass Abiad, a gastrointestinal surgeon, is the chairman of the board of directors of Lebanon’s largest hospital, the Rafik Hariri Hospital. Photo: NNA
Minister of Administrative Development Najla Riachi is the only woman in the Cabinet and has served in a number of diplomatic positions, including as Lebanon’s permanent representative to the UN from 2007 to 2017. Photo: NNA
Foreign Affairs Minister Abdallah Bou Habib served as Lebanon’s ambassador to the US between 1983 and 1990 and has worked for the Wold Bank. Photo: NNA
Interior Minister Bassam Al Mawla was a judge of the Chamber of First Instance in Beirut before heading the North Lebanon criminal court. Photo: NNA
Social Affairs Minister Hector Hajjar has worked for NGOs including Caritas and 'Risala Assalam' which supports people with special needs. Photo: NNA
Economy Minister Amin Salam is a corporate lawyer and economist with a degree in leadership and management from the Harvard Kennedy School. Photo: NNA
Agriculture Minister Abbas Al Hajj Hassan is a former journalist who worked at France 24 in Paris. He studied law and political science in France. Photo: NNA
Defence Minister Maurice Salem served as the army's head of military medicine until his retirement at the rank of brigadier in 2012. Photo: NNA
Minister of the Displaced Issam Sharafeddine is a pharmacist by training who branched out into the business world in the 1990s when he started producing soaps, cosmetics and cleaning products. Photo: NNA
Information Minister George Kordahi worked as a journalist for MBC FM Radio in London and Lebanese television channel LBC. He is also a goodwill ambassador for the UN Environment Programme. Photo: NNA
Public Works and Transport Minister Ali Hamieh holds a PhD in electronics and optical communications from the University of Western Brittany in France. He is a lecturer at a number of local universities. Photo: NNA
Energy Minister Walid Fayyad is managing director of the Mena division at international consulting firm Partners in Performance. Photo: NNA
Tourism Minister Walid Nassar has worked as a consultant for Lebanon’s participation in Expo 2020 Dubai. Photo: NNA
Environment Minister Nasser Yassin is the current director of the Crisis Observatory at the American University of Beirut. Photo: NNA
Labour Minister Moustafa Bayram is one of Hezbollah’s ministers in the Cabinet. He was appointed head legal observer in the audit department of the Council of Ministers in 1998. Photo: NNA
Sports and Youth Minister George Kallas has held a number of administrative positions in Lebanese newspapers and universities and as a lecturer at the faculty of documentation and information at the Lebanese University. Photo: NNA
Education Minister Abbas Halabi is a former judge and vice chairman of the board of directors and legal counsel at Lebanese bank BBAC and holds a degree in French and Lebanese law from Saint Joseph University in Beirut. He is vice president of the Lebanese National Commission for Unesco. Photo: Unesco
Justice Minister Henry Khoury is the former head of the State Shura Council. Photo: NNA
Industry Minister George Boujikian is a businessman who has founded several Lebanese companies including pharmaceutical companies Technoline and BioDiamond Middle East. He holds both Lebanese and Canadian citizenship. Photo: NNA
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The Written World: How Literature Shaped History
Martin Puchner
Granta
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.