Amman, Dec. 18 (Petra) – A Senate financial and economic committee has called on the government to sharpen policy responsiveness to global economic shifts, warning that heightened external volatility requires faster fiscal and regulatory adjustment to protect growth and sustain targeted sectoral support.

In its report on the draft general budget law, the committee outlined a broad reform agenda aimed at deepening capital markets, strengthening public finances and accelerating structural transformation across key sectors of the economy.

The panel urged the introduction of a dedicated legal framework for non-bank financial institutions, alongside tax incentives to encourage consolidation in the fragmented insurance sector. It also recommended attracting foreign investment funds into domestic markets through targeted tax exemptions, mirroring practices in comparable economies, and studying the listing of treasury bills on a secondary market to enhance liquidity and broaden the investor base. The report further called for stimulating mutual investment funds as part of a wider effort to deepen financial intermediation.

On local governance and public service delivery, the committee pressed for swift passage of a new local administration law, drafted in consultation with technical experts and political and civil stakeholders, followed by early elections. It proposed expanding private-sector participation in municipal services – including solid waste management, markets and slaughterhouses – while accelerating the separation of executive and elected functions within municipalities. Continued financial backing for the Cities and Villages Development Bank was also recommended, alongside a rebranding to better reflect its mandate.

In healthcare, the committee advocated activating the Higher Health Council, advancing studies toward universal health coverage and consolidating insurance funds to improve efficiency and risk pooling. It also called for leveraging corporate social responsibility financing and public-private partnerships to expand health infrastructure, while safeguarding health insurance funds for their intended use.

The report highlighted labor-market rigidities, recommending amendments to civil service regulations to raise the retirement age for specialists to between 65 and 70, and urged faster classification and digitization of civil society organizations to reduce duplication and improve service targeting.

Agriculture and water security featured prominently, with calls to bolster agricultural lending, scale up exports, fast-track electronic crop tracking and livestock identification, and invest more aggressively in water-harvesting projects and modern irrigation technologies. The committee stressed the need to curb groundwater over-extraction, reduce network losses and strengthen enforcement against encroachments.

On infrastructure and logistics, the panel pushed for rapid conclusion of an agreement with the UAE on the Shidiya–Aqaba railway project, alternatives to heavy truck transport for phosphate and potash, completion of the Ma’an dry port, and the development of a comprehensive national transport database. It also urged capacity-building within the Ministry of Transport.

The report called for recalibrating investment policy by strengthening the Ministry of Investment with skilled staff and broader authority, reassessing the investment environment law and incentives – particularly outside Amman – and revisiting the public-private partnership framework to ensure value for money. Priority national projects and programs tackling poverty and unemployment should continue to receive support, alongside expanded cooperation with international financial institutions.

In energy policy, the committee stressed alignment between the 2026–2030 energy strategy and Jordan’s economic modernization roadmap, advocating greater integration of renewables, investment in storage technologies, reduction of electricity losses and wider use of time-of-use tariffs. It also recommended accelerating the shift from fixed fuel pricing to monthly price caps and increasing value added in the phosphate and potash industries.

The report extended to innovation and tourism, urging legislation to regulate venture capital funds, measures to stem the migration of tech start-ups, stronger cybersecurity awareness, diversification of tourist source markets and rigorous economic feasibility studies for tourism projects.

Education and social policy recommendations included expanding public-private partnerships to address a shortfall of more than 595 schools, resolving university debt through a phased program, and aligning academic programs with digital transformation and labor-market needs.

Overall, the committee framed its recommendations as a coordinated reform package aimed at reinforcing fiscal sustainability, boosting private-sector participation and enhancing Jordan’s resilience amid an increasingly uncertain global economic environment.

//Petra// AA

18/12/2025 11:18:24