[19/05/2026 11:27]

ADEN-SABA
The Cabinet on Tuesday adopted a broad package of economic and administrative measures aimed at improving the welfare of public sector employees, strengthening institutional performance, and advancing reforms across state institutions.

The decisions were taken during a meeting in the interim capital, Aden, chaired by Prime Minister and Minister of Foreign Affairs and Expatriates Shaya Zindani.

With the participation of Central Bank Governor Ahmed Ghaleb, the Cabinet reviewed the country’s economic and living conditions amid ongoing exceptional challenges. The government reaffirmed that easing citizens’ hardships, improving essential services, and meeting obligations toward public employees remain at the forefront of its priorities.

Among the key decisions, the Cabinet approved a 20 percent cost-of-living allowance for all state employees as part of measures designed to mitigate the impact of rising living costs and enhance purchasing power.

The government also moved to address long-delayed employment adjustments that have remained unresolved for more than 13 years, including completing pending procedures related to career settlements and implementing the financial entitlements linked to academic promotions for university lecturers and faculty staff.

In a related step, the Cabinet approved the disbursement of annual salary increments due for the years 2021 through 2024 for employees across public service institutions, underscoring its commitment to resolving accumulated wage-related issues.

The government said the measures form part of a comprehensive reform agenda focused on revitalizing state institutions, improving the efficiency of public expenditure, and reinforcing administrative discipline, while supporting broader efforts to stabilize the economy and restore services.
The Cabinet also approved the adjustment of the customs dollar exchange rate under the framework of economic reforms and in implementation of a Presidential Leadership Council decision issued in 2025. Officials said the move is intended to streamline public revenue mechanisms, correct market distortions, and improve resource collection.
The government stressed that the decision would not affect basic commodities already exempt from customs duties, noting that it primarily targets luxury and non-essential goods. Relevant ministries and local authorities were directed to intensify oversight to prevent unjustified price increases and ensure consistent implementation at all ports and entry points.

The Ministry of Industry and Trade was instructed to coordinate with the Chamber of Commerce and relevant agencies to conduct market inspections, curb price manipulation and monopoly practices, and regularly publish indicative pricing lists for essential goods. Security authorities were also tasked with tightening anti-smuggling measures at ports, roads, and markets.

The Cabinet further instructed the Tax Authority to strengthen tax collection procedures and combat tax evasion, while the Ministries of Civil Service and Finance were tasked with preparing a plan to eliminate duplicate employment records and continue the transition to bank-based salary payments for all government personnel.

In addition, the Cabinet approved the formation of the Supreme Tender Committee as part of efforts to enhance transparency and oversight in public procurement, strengthen governance, and ensure fair competition in government contracting.

The meeting emphasized that the committee would play a central role in safeguarding public funds, preventing procedural violations, and supporting the state’s anti-corruption agenda through more effective management of public tenders and procurement processes.

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