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Yemeni Cabinet Approves Emergency Plan to Address Currency Collapse, Electricity Crisis, and Drug Threats

Yemen Monitor | Newsroom:

The Yemeni Cabinet held its regular session today, Wednesday, in the interim capital Aden, chaired by Prime Minister Salem Saleh bin Brik. The meeting addressed a number of critical issues, primarily the country’s economic and service-related conditions, government responsiveness to citizens’ needs, and national preparedness for the battle to restore state institutions and end the Houthi coup.

The Cabinet reviewed the deteriorating economic situation—particularly the collapse of the national currency and its impact on citizens’ livelihoods—and stressed the need for coordination between fiscal and monetary policies, along with effective measures to stabilize the economy.

In this context, the Cabinet approved the convening of an emergency session to address urgent aspects of the economic crisis, ensure the regular payment of public sector salaries, and maintain the provision of essential services.

The Cabinet also scheduled a special session to address the ongoing electricity crisis, including evaluating the performance of generation, transmission, and distribution sectors, examining fuel supply needs, and exploring available alternatives to alleviate citizens’ suffering during the summer heat.

At the outset of the meeting, the Prime Minister delivered a comprehensive briefing on political, military, and economic developments. He emphasized the need for integrated efforts between the government, state institutions, and local authorities to face current challenges, while making the most of support from the Presidential Leadership Council, Parliament, and political components.

The Prime Minister also referenced his recent meeting with the UN envoy, reaffirming the government’s commitment to a peace process based on the three agreed-upon references and rejecting the actions of the Houthi militia, which continues to threaten regional and international security with backing from the Iranian regime.

In this regard, the Cabinet condemned the brutal crime committed by the Houthi militia against Sheikh Saleh Hantous and his grandson Hamzah in the Al-Salafiyah district of Raymah Governorate. It affirmed that such crimes reflect the militia’s bloody nature and will not go unpunished.

The Cabinet session also included a report from the General Directorate for Drug Control, which outlined the scale of security challenges posed by drug trafficking and abuse, recent seizures, and ongoing efforts to curb the spread of narcotics.

The Cabinet praised these efforts and stressed the need for coordination among security, judicial, and media entities to confront this cross-border threat, which the Houthi militia helps fuel to fund its terrorist activities.

As part of this response, the Cabinet approved several measures, including:

  • Increasing the operational budget of the Drug Control Directorate
  • Establishing a National Committee to Combat Illicit Drug Trafficking
  • Supporting anti-drug branches in the provinces
  • Creating specialized rehabilitation centers for addiction treatment
  • Enhancing the capabilities of the Coast Guard
  • Establishing an information center to link anti-drug branches and promote regional and international cooperation

The Cabinet also reviewed a report from the Minister of Local Administration regarding the collection of local revenues in liberated provinces during 2024. The report emphasized the need to correct imbalances in revenue generation and growth, strengthen transparency and oversight, and direct resources toward improving services and local development.

In closing, the Cabinet stressed the vital role of local authorities in improving financial and administrative performance and reiterated the government’s commitment—under the directives of the Presidential Leadership Council—to providing the necessary support to enhance development efforts, fight corruption, and achieve economic stability.

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