Middle East & Central Asia News
LAST UPDATE: July 18, 2025
New head of the IMF mission to Armenia and Deputy Prime Minister discussed Armenia’s macroeconomic policy
On June 17, 2025, Armenia’s Deputy PM and the newly appointed head of the IMF mission to Armenia met to discuss macroeconomic policy, including priorities in education, housing for displaced persons, socio-economic inclusion, and technical cooperation .
Insight
This meeting reflects Armenia’s engagement with the IMF to align mission priorities with domestic socio-economic needs. It demonstrates a targeted approach to shaping IMF assistance in areas like social housing and inclusion.
Egypt widens VAT base in IMF-backed tax revenue drive
Egypt has expanded VAT to cover cigarettes, alcoholic beverages, and now crude oil, with higher rates on alcohol phased over three years—an IMF‑endorsed fiscal reform strategy to boost state revenue .
Insight
Covering vice goods and energy with VAT is classic IMF advice for revenue diversification. The phased alcohol tax increases suggest balancing fiscal needs with inflation and public acceptance.
Kazakh tenge hits record low amid dollar demand for state programs
The Kazakh tenge weakened to a record low of around 530.8 per USD on December 2, 2024, driven by strong demand for dollars related to state-financed programs. Kazakhstan’s central bank intervened with over US $1 billion in FX sales during November to stabilize the currency (bloomberg.com, wsj.com, timesca.com).
Insight
The plunge shows deep external pressure on Kazakhstan’s currency—linked to dollar-driven budget needs and external shocks like falling oil prices and ruble weakness. Large-scale interventions signal ongoing vulnerability and highlight the need for reserve buildup or fiscal adjustment.
Georgia halts $3 million uranium sale that could have fueled bomb
Georgia’s State Security Service arrested two individuals attempting to sell $3 million worth of uranium—potentially bomb-grade—to a Turkish citizen, averting a cross-border nuclear crime .
Insight
The interdiction spotlights persistent proliferation risks involving small-scale smuggling. Georgia’s security response and intelligence coordination signal regional vigilance but raise questions on border control.
Iraq shopping mall fire kills more than 60
A fire broke out on July 16, 2025, in a newly opened five-story mall in Kut, eastern Iraq. The blaze, sparked by an exploding AC unit, killed at least 60 people (possibly 61), mostly due to smoke inhalation; about 14 bodies remain unidentified .
Insight
This tragedy underscores Iraq’s chronic lapse in building safety and emergency infrastructure enforcement. The governor’s promise of accountability is crucial, but lasting change will require systemic regulatory and resource reforms.
