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Yemeni govt facing financial hurdles due to Houthi attacks on oil facilities

IANS | May 25, 2023 10:43 AM

ADEN: The Yemeni government has said that it is facing financing difficulties following a drop in public revenues caused by Houthi attacks on oil export ports.

Prime Minister Maeen Abdulmalik said on Wednesday at a cabinet meeting in the southern port city of Aden that Houthi-launched attacks have caused losses estimated at $1 billion, according to a statement reported by state-run Saba news agency.

He emphasised the financial difficulties the government is currently grappling with in fulfilling its responsibilities, including improving public services and paying salaries across the war-ravaged country, Xinhua news agency reported.

To address the challenges, the Prime Minister established a committee comprising six ministries and the Central Bank, which will oversee the implementation of an extensive economic, financial, and monetary reform program.

Meanwhile, Abdullah Al-Saadi, Yemen's permanent representative to the United Nations, stressed on Wednesday the need to pressure the Houthis to stop targeting vital facilities and infrastructure in the country.

Al-Saadi said that "the violations of the Houthis threaten the peace process and cause economic harm to all Yemenis".

He called for support in enabling the Yemeni government to resume oil exports to meet urgent financial obligations and address citizens' needs.

Over the past few months, the Houthi militia in Yemen conducted drone strikes on government-controlled oil ports in Hadramout and Shabwa provinces.

These repeated assaults resulted in the suspension of oil exports, which serve as a vital source of income for the impoverished Arab nation's government.

The Houthis have consistently stated that their objective in targeting these ports is to thwart the exploitation of Yemen's "sovereign wealth".

Yemen has been mired in a civil war since late 2014 when the Iran-backed Houthi militia stormed several northern cities and forced the Saudi-backed Yemeni government out of the capital Sanaa.

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