THURSDAY January 12, 2017 13 Rabi Al Thani 1438 AH
6 085010 120010
FROM THE WORDS OF HIS MAJESTY THE SULTAN
On the occasion of the Opening of the Council of Oman, 1997
‘His Majesty’s Wisdom’ The establishment of the Council of State to work side-byside with the Majlis Al Shura towards achieving the nation’s goals is another step forward along the path of co-operation between the government and the citizens, which aims to ensure greater prosperity, progress and development.
MANTHERI HEADS TO PAKISTAN>A6
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EXPENDITURE CUT
CABLE
IMF hails Omani budget 2017, targeted subsidies OMAN BUDGET 2016 VS 2017: NON-OIL AND GAS REVENUE (Omani rials, millions)
2016 2017
SYED HAITHAM HASAN
Tax and fees revenue
Other than tax revenue
Corporate Non-Omani Customs Others Income Miscellaneous Others tax labour duties from revenue licence government fees investments -23%
+22%
+18%
+42%
-60%
+728%
+14% 669
Tax and fees revenue
1,329 1,423
520
585
500
Other than tax revenue
1,121 1,167
370 343
400 310
298 313
5.7% 254
242 200
2,450
Total
2,590
36
Source: KPMG
Graphics
haitham@timesofoman.com MUSCAT: Oman’s austerity driven State Budget has been welcomed by the International Monetary Fund (IMF), describing it as a major stride towards strengthening the country’s financial position. In an exclusive interview to the Times of Oman, Allison Holland, IMF mission chief to Oman, appreciated the government’s efforts to slash expenditure and increase alternate sources of income. “The large reduction in deficit targeted in the 2017 budget is very welcome. While higher oil revenues are expected to contribute substantially to reduce the deficit, it is encouraging to see the government’s commitment to take additional measures to reduce government expenditure and increase non-oil revenue,” she added.
TOP THREE INSIDE STORIES
OMAN
ISM starts safe bus transport system
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A safe transport system for pupils is now up and running at the Indian School Muscat. The largest Indian school in Oman, the Indian School Muscat (ISM), has a strength of nearly 10,000 students, most of whom commute from home to school and back by bus. >A3
SHOCKING TALES OF CHILD ABUSE EXPOSED BY HOTLINE Even during its testing phase, the hotline (1100) got 100 cases of abuse
WORLD
from children
Trump blames US intelligence for leak
HASSAN SHABAN AL LAWATI
hassan@timesofoman.com
2
US President-elect Donald Trump said on Wednesday that Russia had never tried to sway his actions and furiously blamed US intelligence agencies for news reports that Moscow had compiled compromising information on him. >A12
MARKET
VAT introduction in Gulf to be delayed
3
A delay is expected in implementing the muchawaited value-added tax (VAT) by the six-member Gulf Cooperation Council (GCC) states as Saudi government recently indicated that it will be implemented in the first quarter of 2018. >B1
MUSCAT: A father forcing his teen daughter into prostitution, a 17-yearold girl violently beaten by her mother and many more disturbing stories marked 2016 in Oman, social workers lamented even as the Ministry of Social Development continues to work to raise awareness to protect children. According to the ministry, in 2016, of the estimated 300 cases of child abuse, at least 100 were reported through a hotline (1100) which was tested last year for a period of six months. “The ministry received at least 100 calls from
children in 2016 and the number is expected to rise this year following our social media campaign,” Shamsa Al Hajri from the family protection department of the ministry, told the Times of Oman. Most reports of such abuse involved sexual harassment perpetrated by a relative, according to Al Hajri. Giving a breakup of the figures, she said 55 per cent of the cases involved parental negligence. A ministry official revealed that 24 per cent of the reports were related to sexual abuse, followed by physical abuse in 18 per cent cases and emotional abuse in 3 per cent cases. However, both the genders suffered a similar share of abuse as under-18 boys accounted for 53 per cent of the victims, compared to 47 per cent girls. However, expat and Omani children can now heave a sigh of relief as the ministry is encouraging them to report any case of abuse to the government’s social workers following the official inauguration of the Child Protection Hotline (1100). >A6
Oman’s 2017 budget, revealed on January 1, replicates previous year’s budget but includes more prudent fiscal reforms, such as taxes and subsidy cuts, to increase revenue and cap the soaring deficit. Studies by the IMF have shown that energy subsidies, like the one that was introduced in Oman in January 2016, can be poorly targeted and often benefit wealthier households. However, proposals in budget 2017 target niche audiences, like big time users of electricity, sparing smaller users from inflated costs. Holland believes that the targeted nature of subsidy reforms is an excellent method to adopt. “We welcome the reforms to reduce fuel and power subsidies targeting larger users, which have already generated important savings for the budget, thus allowing other forms of expenditure that can be diverted to health and education.” >A4
HM sends condolences to Germany MUSCAT: His Majesty Sultan Qaboos bin Said has sent a cable of condolences to President Joachim Gauck of the Federal Republic of Germany on the death of Roman Herzog, former German president. In his cable, His Majesty the Sultan has expressed his sincere condolences and sympathy to President Gauck, the friendly German people and the deceased family. -ONA MINISTRY
Death of UAE diplomats in Afghan attack condemned Times News Service MUSCAT: Oman strongly condemned the terrorist attacks in southern Afghan city of Kandahar, which resulted in the injury of United Arab Emirates (UAE) ambassador and five Emirati diplomats who were on a humanitarian mission in Afghanistan. “The Sultanate stands with the sisterly countries of UAE and Afghanistan against this gruesome crime,” the Ministry of Foreign Affairs said in a statement on Wednesday. The ministry expressed its deep condolences and sympathy to the families of the UAE martyrs and to the two countries.
MORNING MINUTE
METEOROLOGY
Rough seas forecast for next 3 days Staff Reporter MUSCAT: A fresh northwesterly wind will result in rough seas from Thursday evening, the Oman meteorology department has said in its alert. “From Thursday evening for three days the sea waves will be rising up to two to three metres along the coast of Musandam and Sea of Oman,” the meteorology department tweeted on its official twitter handle.
EXPENDITURE CUT
Remittances set to rise as Omani rial strengthens SYED HAITHAM HASAN
177.5
haitham@timesofoman.com MUSCAT: Remittances from the Sultanate are tipped to spike as the Omani rial sits strong in the currency market. The rial enjoys a convenient peg with the rallying US dollar that hit a 13-year high in November 2016, causing it to peak against currencies worldwide. Expats in Oman are expected to receive more of their home currency for every rial they exchange in 2017. One Omani rial is currently
is the rate of Indian rupee for one Omani rial at exchange houses
trading at 177.51 Indian rupees, up from 171.71 in April 2016; and £2.14, up from 1.74 six months ago. One Omani rial can be exchanged for €2.45, up from €2.2 in April 2016.
“The Omani rial is at its highest in months against the Indian rupee and remittance in the short term is expected to be high from expats, especially from Asian countries. Dollar is not showing any signs of
weakness and with Trump coming in as the president, it will probably strengthen more. We are expecting high volumes of trade in the next few days,” said Philip Koshy, General Manager at Modern Exchange. With US president-elect Donald Trump set to take office later this month and British Prime Minister signalling to trigger Article 50 that will see the UK pulling out of the eurozone, dollar, along with pegged currencies, is expected to strengthen and the pound is poised to fall. >A6
Omani artisans’ brilliance to the fore
A4