With Kuwait’s oil revenue down by 51% this year (see p9) the IMF says that Kuwait needs to seize the opportunity to comprehensively reform domestic energy prices.

Prices should be raised to international levels with a mechanism introduced to “depoliticize” price setting. Such price reform will create “budget space” to protect social spending and public investment during the fiscal adjustment process, and at the same time create incentives to reduce energy consumption, the IMF says in a 2 December study. (CONTINUED - 762 WORDS)