Khartoum state announces measures to reduce impact of economic measures

October 17, 2013 (KHARTOUM) – The government of Khartoum state announced that the finance ministry will allocate 20 million Sudanese pounds monthly to subsidize the public transportation tariff.

The mayor of Khartoum locality Omer Nimir also revealed that they will inaugurate eight new markets that will sell basic commodities at reduced prices.

Nimir told Sudan official news agency (SUNA) that the move is an attempt to cushion the effects of the recent economic measures by which the government scaled back fuel subsidies which raised the prices of gasoline and diesel by almost 100%.

Khartoum mayor noted that they previously opened six similar markets adding that commodities there are sold at a 35% discount.

Sudanese officials including Khartoum governor acknowledged that lifting subsidies will make life harder for ordinary citizens but defended the measures saying that the country can no longer afford to pay for these subsidies after losing 75% of the oil reserves that are now in South Sudan territory.

The Sudanese pound has lost more than half its value, pushing inflation rates to record levels given that the East African nation imports most of its food.

(ST)