By Maha El Dahan — reuters — BEIRUT, (Reuters) – Lebanon’s new Prime Minister Najib Mikati, who took office last week promising to revive IMF talks to unlock aid, said on Monday there was no time to lose and no easy path to tackle one of history’s worst economic meltdowns. The new government, formed after more than a year of political stalemate, met for the first time on Monday, replacing a caretaker administration that had quit in the aftermath of last year’s Beirut port explosion that killed hundreds, injured thousands and left large swathes of the capital destroyed. read more “It is true that we don’t have a magic wand. The situation is very difficult,” Mikati, a billionaire-turned-politician told the cabinet, according to a statement published after the government’s first meeting. Lebanese hope the new administration will plot a path out of a crisis that has sunk the currency by some 90% since late 2019 and forced three quarters of the population into poverty.
Mikati pledged to help resolve shortages of fuel and medicine, supplies of which have dried up as the import-dependent nation’s hard currency reserves have run out. State electricity is available for a few hours a day, if at all, and most Lebanese homes and establishments increasingly rely on private generators. A generator at a dentist’s clinic in Tyre exploded on Monday leaving seven people injured, a reflection of the safety hazards of relying heavily on the alternative source of power.