BEIRUT - (Xinhua) - Lebanese caretaker Prime Minister Najib Mikati warned today (Thursday) that his country "stands at the crossroads of its conclusion, either the expected rise or the grim deterioration."

This came in a speech delivered by Mikati during his sponsorship of the opening session of the "28th Arab Economic Forum" under the title "Lebanon: The Road to Oil", in the presence of more than 400 participants from Lebanon and about 30 countries.

The Forum is organized by the Al-Iktissad and Business Group in partnership with the Lebanese Economic Authorities, the Union of Arab Chambers, and the Public Institution for the Promotion of Investments in Lebanon (IDAL), in cooperation with the League of Arab States.

Mikati stressed that "Lebanon is at a crossroads, the bottom line of which is either the expected recovery or a gloomy decline," explaining that "in the event that the positive political-economic scenario is realized, the economic and social pressures begin to recede, and the country begins to rise from its dark slump."

He pointed out that "the opposite scenario will lead to more economic stagnation in all sectors, which will lead to great pressure on the exchange rate of the Lebanese pound, and this will be reflected in social conditions and Lebanese families in general."

Mikati believed that achieving economic prosperity requires the election of a new president and the formation of a new government that pledges to adopt a serious reform approach with practical and comprehensive political support.

He also stressed "creating a safe investment environment under a fair and independent judicial system, and completing the steps required to reach a final agreement with the International Monetary Fund, which establishes access to foreign aid and investments towards Lebanon that requires the Fund's involvement as an international observer of reforms at home."

The disagreements of the political forces prevented the election of a new president for the country to succeed former President Michel Aoun, despite the parliament holding 10 sessions for this purpose, between the end of last September and the 15th of this December.
The differences also prevented the formation of a new government headed by Mikati, after the parliament assigned him to do so last June, following the resignation of his government after the parliamentary elections.

Since 2019, Lebanon has been suffering from constant tensions amid political, economic, financial, health and living crises, which are the worst in its history.

Mikati urged politicians to "rise above their narrow interests" (..) and establish a foundation to get out of "the dark setback, contain the underlying risks, and move towards an era of economic advancement."

Mikati addressed the positive indicators that the Lebanese economy is going through despite the severity of the crisis, including the economic growth of about 2%, in addition to the increase in remittances of Lebanese working abroad by about 7%, to reach $6.8 billion.

He believed that the Lebanese private sector is looking forward to stabilizing the general political situation, in order to restore the factor of confidence and consensus on the reform agenda and to conclude a final agreement with the International Monetary Fund in order to return the country to the path of growth.

He said that the public sector is suffering from a massive crisis, as the total budget does not exceed one billion dollars, compared to about $17 billion in the 2019 budget, which limits infrastructure resources and operational and investment expenditures.

And Lebanon had pledged, according to an initial agreement at the staff level with the International Monetary Fund on April 7, to adopt appropriate legislation on “capital control” (capital control), reform the banking sector, and unify currency exchange rates.

Lebanon has not yet made sufficient progress in implementing the commitments made under the initial agreement with the Fund, despite repeated international calls for the authorities to expedite the completion of all the steps that have not yet been resolved.