Structured Dialogue’s Economic Track members warn of rising public debt

Members of the Economic Track of Libya’s Structured Dialogue have warned that the continued rise in public debt and worsening structural imbalances in the Libyan economy will place increasing pressure on public finances, foreign exchange reserves, and the value of the Libyan dinar unless meaningful reforms are implemented.

The warning came during an online discussion with Libyans from across the country, featuring three members of the Economic Track: Abdul Rahim Al-Shaibani, Dr. Hamida Aburounia, and Dr. Najia Al-Bouazi. Over the course of a 90-minute session, the panel presented the Structured Dialogue’s main economic recommendations and answered participants’ questions on addressing Libya’s long-standing economic challenges, according to a statement issued Wednesday by the UN Support Mission in Libya (UNSMIL).

The speakers said the Economic Track reviewed Libya’s economic performance between 2012 and 2025 and identified the main structural weaknesses undermining economic stability. These include heavy dependence on oil revenues, rising public debt, growing recurrent government spending, weak investment in development projects, as well as a lack of transparency and reliable economic data.

The panel explained that the dialogue’s recommendations focus on six key pillars: public financial governance; governance of the oil and energy sectors; economic restructuring and diversification; balanced regional development and social justice; economic policy reform; and strengthening transparency and accountability. They stressed that these pillars form an integrated reform framework, with each reinforcing the others.

The participants emphasized that building a more resilient Libyan economy requires stronger institutions, improved public financial management, a greater role for the private sector, and reduced dependence on oil as the country’s primary source of income in order to achieve sustainable economic growth.

The discussion also covered proposals to promote development across Libya’s regions, including support for decentralization, improvements in public services and infrastructure, expanded opportunities for young people, encouragement of entrepreneurship, better alignment between education outcomes and labor market needs, and greater use of digital transformation and artificial intelligence to strengthen the national economy and capitalize on future opportunities.

During the question-and-answer session, participants discussed the implementation of the recommendations, regional development, management of foreign exchange reserves, digital transformation, the use of artificial intelligence for development, and support for local economic initiatives.

Economic Track members stressed that the dialogue’s recommendations are not legally binding but provide an evidence-based framework that governments and institutions can draw upon when shaping future economic policies. They added that successful implementation depends on achieving political consensus, strengthening and unifying institutions, and improving the availability of reliable economic data.

Around 120 Libyan men and women from across the country participated in the Structured Dialogue, representing a broad range of backgrounds. Since December 2025, participants have held 18 in-person and virtual sessions across four tracks: national reconciliation and human rights, security, economy, and governance. 

Members of these tracks previously presented their findings on June 7 to around 200 attendees, including representatives of the diplomatic community and the United Nations Support Mission in Libya.