AIRLINK 72.50 Decreased By ▼ -1.60 (-2.16%)
BOP 5.05 Increased By ▲ 0.05 (1%)
CNERGY 4.41 Increased By ▲ 0.07 (1.61%)
DFML 29.85 Increased By ▲ 0.31 (1.05%)
DGKC 83.90 Increased By ▲ 0.35 (0.42%)
FCCL 22.63 Increased By ▲ 0.20 (0.89%)
FFBL 34.60 Decreased By ▼ -0.30 (-0.86%)
FFL 10.21 Increased By ▲ 0.34 (3.44%)
GGL 10.31 Increased By ▲ 0.31 (3.1%)
HBL 112.75 Increased By ▲ 0.75 (0.67%)
HUBC 140.55 Increased By ▲ 2.86 (2.08%)
HUMNL 8.03 Increased By ▲ 1.05 (15.04%)
KEL 4.45 Increased By ▲ 0.05 (1.14%)
KOSM 4.53 Decreased By ▼ -0.06 (-1.31%)
MLCF 38.70 Increased By ▲ 0.15 (0.39%)
OGDC 135.55 Decreased By ▼ -1.05 (-0.77%)
PAEL 26.85 Increased By ▲ 1.71 (6.8%)
PIAA 26.17 Decreased By ▼ -0.34 (-1.28%)
PIBTL 6.58 Decreased By ▼ -0.07 (-1.05%)
PPL 122.87 Decreased By ▼ -2.53 (-2.02%)
PRL 28.40 Increased By ▲ 0.19 (0.67%)
PTC 13.99 Decreased By ▼ -0.31 (-2.17%)
SEARL 55.80 Increased By ▲ 1.20 (2.2%)
SNGP 70.98 Decreased By ▼ -0.22 (-0.31%)
SSGC 10.46 Decreased By ▼ -0.04 (-0.38%)
TELE 8.63 Increased By ▲ 0.11 (1.29%)
TPLP 11.05 Increased By ▲ 0.11 (1.01%)
TRG 61.70 Increased By ▲ 1.00 (1.65%)
UNITY 25.26 Decreased By ▼ -0.07 (-0.28%)
WTL 1.29 Increased By ▲ 0.03 (2.38%)
BR100 7,675 Increased By 9.9 (0.13%)
BR30 25,155 Increased By 129.5 (0.52%)
KSE100 73,183 Increased By 418.6 (0.58%)
KSE30 23,760 Decreased By -15.1 (-0.06%)

DUBAI: South Sudan will run a balanced budget this year and its economy will rebound as oil production rises and a peace deal progresses, the country's finance minister said on Wednesday

The oil-dependent economy, ruined since civil war broke out six years ago, shrank 1.5 percent in 2018. The country relied on international donors to fill its budget deficit and spending was largely unrestrained.

This year, gross domestic product is expected to grow by 3 to 3.5 percent, Salvatore Garang Mabiordit told Reuters in an interview in Dubai.

An increase in oil production will allow for a balanced budget, Mabiordit said, and a peace agreement between the government and the main rebel group should encourage investment.

The country's budget is based on an oil price of $55 a barrel, lower than the $72 a barrel where it trades.

"We can maintain GDP growth as long as there is peace," Mabiordit said.

A unity government is due to be set up next month under a 2018 peace agreement. But former rebel leader Riek Machar told Reuters in Rome the government would not be set up by the deadline and at least six more months were needed.

Key milestones, such as disarmament, have not been met. The government, which has been criticised for widespread corruption by investigative groups like Global Witness and Sentry, said it did not have money to fund the integration of the two sides.

More than 400,000 people died in the civil war, which uprooted around a third of the country's 12 million people population and plunged parts of the country into famine. The fighting was marked by ethnic violence, the forced recruitment of child soldiers and systemic and brutal gang rapes.

The stability of South Sudan has been further shaken by this month's ouster of Sudan's decades-long president, Omar al-Bashir, who is a guarantor of the peace deal.

All of South Sudan's oil is exported by pipelines running through Sudan, but exports should not be disrupted, said Chol Abel, the managing director of the state-run oil company, Nilepet.

Oil production is expected to reach around 195,000 barrels per day by the end of the year, up from 160,000 today, said Awow Daniel Chuang, director general for petroleum authority at the ministry of petroleum.

That is less than a previous government forecast of 270,000 barrels per day for the end of the year. Output should reach 220,000 bpd by early 2020, Chuang said.

The government has said production would reach pre-war levels of 350,000 to 400,000 bpd by mid-2020.

Negotiations with South Africa's Strategic Fuel Fund to build a 60,000 bpd-capacity refinery near its Ethiopian border are expected to conclude by the end of the year, Chuang said.

Copyright Reuters, 2019

Comments

Comments are closed.