The Privatisation and Corporatisation Board (PCB) has issued a directive to state-owned enterprises (SOEs) to halt the issuance of salaries and allowances in dollars. This measure is part of a broader strategy led by President Dr. Mohamed Muizzu to reduce SOE expenditures and address current financial and economic challenges.
The PCB’s circular emphasizes the government’s commitment to economic recovery and outlines several cost-cutting measures. In addition to ceasing dollar-denominated salary payments, the PCB has instructed SOEs to limit new hiring to essential positions only, maintain current salary and allowance levels, and restrict overtime to critical situations.
Other directives include suspending intra-atoll and international flights, with a preference for virtual meetings with international clients and suppliers. Officials traveling for important official purposes are advised to avoid First Class if the flight exceeds six hours and to minimize expenses on trips initiated by foreign parties. The PCB also encourages the use of cost-effective travel options for both domestic and international travel.
Furthermore, SOEs are instructed to refrain from participating in seminars or fairs unless there are clear, direct benefits. The PCB has urged SOEs to adopt renewable energy sources, adhere to annual procurement plans and budgets, limit purchases to essential items, and reduce spending on corporate social responsibility (CSR) and sponsorships. Additionally, it advises against unnecessary expenditures outside of the approved budget.