Economic Impact of the War in the Middle East: Expected Decisions
The focus is on the Cabinet meeting taking place this Friday, which is expected to decide on the recommendations from the crisis committee tasked with identifying solutions to the economic and energy repercussions of the war in the Middle East.
According to our information, the price of homemade bread could rise from Rs 2.60 to Rs 3.90 per unit. The subsidy of 24 cents per loaf provided by the Ministry of Finance may also be removed, along with a significant portion of the financial support given to the State Trading Corporation (STC). A 15% increase in electricity tariffs is also being considered, with exemptions planned for SMEs and beneficiaries of the Social Register.
Currently, thanks to the state subsidy, bakers purchase a sack of flour for Rs 108 from the STC, compared to Rs 278 without support. Adjustments are under consideration, with the possibility that bakers will be required to pay the full price.
Furthermore, private companies may be encouraged to implement measures such as telecommuting, flexible hours, or working during off-peak times where possible. However, these provisions would not be mandatory. Simultaneously, regulations are being prepared to govern remote work, particularly regarding electricity consumption, internet connectivity, equipment, and health and safety aspects. Measures aimed at combating electricity waste, including potential penalties, are also under review.
Regarding home-schooling, no immediate implementation is planned due to significant constraints: unequal access to the internet and equipment, supervision of children, and the need for the Ministry of Education to establish an appropriate framework.
On the public service front, the introduction of telecommuting in the short term remains complex. Many services cannot be delivered remotely, and technical constraints persist, particularly concerning secure access to government servers.
Ultimately, short, medium, and long-term measures are being considered. Authorities believe the situation remains under control. A shipment of petrol, diesel, and heavy oil is expected on April 16, which will ensure reserves for more than 40 days.