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    This May. 3, 2009 file photo shows an oil facility in Jubeil, about 600 km from Riyadh, Saudi Arabia

    Saudi Arabia Should Continue to Seek New Revenue Sources - IMF

    © AP Photo / Hassan Ammar, File
    Middle East
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    Saudi Arabia’s government needs to stay focused on fiscal adjustment and find ways to increase revenue, International Monetary Fund (IMF) Managing Director Christine Lagarde said in a statement Wednesday.

    WASHINGTON (Sputnik) — The IMF chief praised Saudi Arabia’s economic-policy shift in response to falling oil prices as "very welcome."

    "These efforts should continue over the medium-term including through further increases in energy prices which are still low by international standards, further revenue-raising measures including from the planned introduction of excises and the VAT [value-added tax] at the GCC [Gulf Cooperation Council] level, and further spending restraint," Lagarde stated.

    Global oil prices plunged to a 13-year low of under $30 a barrel in January of this year from $115 in June 2014 due to a production-and-supply glut that has posed major challenges for energy companies and oil-producing countries.

    So far in 2016, the Saudi government has introduced a series of reforms intended to diversify the oil-reliant country's economy.


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