Riyadh - Mubasher: Christine Lagarde, the managing director of the International Monetary Fund (IMF) said on Wednesday that she discussed the economic outlook and current policy developments in Saudi Arabia with King Salman Bin Abdulaziz in Riyadh.

The IMF director also said that she held discussions with the Saudi minister of financeIbrahim Al-Assaf and governor of the Saudi Monetary Authority (SAMA) Ahmed Alkholifey, according to an official statement released on Wednesday.

 “Saudi Arabia has begun a major policy shift to respond to low oil prices. Vision 2030 and the National Transformation Program (NTP) contain ambitious policy reforms to reduce the economy’s reliance on oil, strengthen non-oil growth, and increase employment opportunities,” she added.

“Fiscal adjustment has started, with the government containing expenditures and raising additional revenues. These efforts should continue over the medium-term including through further increases in energy prices which are still low by international standards, further revenue-raising measures including from the planned introduction of excises and the VAT at the GCC level, and further spending restraint.”

“The reforms that the GCC countries have been implementing over the past year in response to the decline in oil prices are impressive. Continued fiscal adjustment will be needed over the medium term.”

“Where possible, countries should phase in deficit-reduction measures gradually, while strengthening their medium-term fiscal frameworks and fiscal transparency to support the adjustment. Policies to support growth and employment will also need to continue.”

Lagarde also participated in the Gulf Cooperation Council (GCC) finance ministers and central bank governors meeting, where views were exchanged on the region’s outlook, challenges, and policy priorities, according to the statement.

“The meeting is an important forum for policymakers to discuss issues facing the region and possible avenues for policy cooperation,” she said in the statement.