Let’s share to overcome deficit

Manama

In a bid to overcome the huge deficit in the country’s budget, a lawmaker suggested to borrow Saudi Arabia’s share in a joint oilfield with Bahrain for a period of one year.

While speaking to DT News yesterday, Parliament Financial and Economic Affairs Committee member MP Abdulrahman Buali said he had discussed his proposal with Finance and Energy Ministers, as well as with his fellow committee members.

“It received general acceptance, but taking such a big step will require higher authorities to make the decision. We have done this in the early nineties and it helped us get over some difficult financial situations,” Buali said.

He explained, “Abu Saafah oil field is a joint facility between Saudi Arabia and Bahrain. It produces 300, 000 barrels on a daily basis. The production is divided in half between both kingdoms. If the whole daily production of 300, 000 barrels is lent to Bahrain for one year, we will surely overcome the deficit, without the need to borrow money, sink deeper in debt and pay additional interests that will take us to square one.”

 Buali added, “Oil barrel price is estimated to hit USD75 in 2016, which means Bahrain’s oil incomes will exceed USD8 billion then. This amount will contribute in closing the huge gap of the country’s debts.” 

The MP stated that Saudi Arabia has always been supportive to Bahrain. According to the latest statistics of International Monetary Fund, Bahrain received around USD2.8 million of direct financial assistance from Saudi Arabia in the period between January 2011 and April 2014. 

He added that implementing this proposal will benefit the kingdom in various ways, by stimulating oil industry, diversifying its sources of income, developing public income, enhancing debt control, implementing vital projects and refreshing national economy.