Cabinet's meeting dedicated to discussing public sector reform and pensions

Cabinet's Tuesday afternoon meeting was dedicated entirely to examining a study focused on the reorganization of the public sector, the only item on the agenda, Information Minister Paul Morcos told L'Orient Today.

The minister stated that no bill or decree is currently being prepared as the topic remained under discussion.

At a press conference held after the meeting, the minister added that discussions focused on "reviewing the country's financial situation and ways to improve the management of public resources."

Accordingly, the government studied reform options aimed at "increasing revenues and investment without raising taxes," while emphasizing "improved tax collection, strengthened customs controls, and better use of state assets," according to the conference report published by the state-run National News Agency (NNA).

New allowance for civil retirees

The main development from the meeting was the granting to civil servant retirees of a monthly allowance of LL12 million (about $134) for the period from Aug. 1, 2025, to Dec. 31, 2025, subject to the adoption of the law opening the necessary credits.

Other decisions mentioned included investments in "public real estate," particularly for "solar energy production," as well as "tougher measures against violations of the power grid." The Council also stressed the need to strengthen "electronic interconnection between administrations to combat tax evasion and to speed up procedures."

Asked about other political or diplomatic matters, Morcos explained that today’s session was deliberately limited to financial issues, adding that further meetings will be devoted in the coming weeks to other issues, including reconstruction, which "has not been set aside," he assured.

Public sector reform, which involves a bloated workforce — around 300,000 people including the armed forces — is one of the major projects the country will have to undertake in the future to rebalance its budget, as part of a financial assistance program from the International Monetary Fund.

Many public sector employees are dissatisfied with the level of their pay, which has still not been fully adjusted to the current exchange rate of the Lebanese pound against the dollar, more than six years after the onset of the crisis that triggered the collapse of the country’s financial system and, at the same time, its currency.