Editing Economy of Lebanon (section)

== Reforms ==
{{Economy of Lebanon}}
Lebanon's current program of reforms focuses on three main pillars:
[[File:American-University-Beirut-NW.jpg|thumb|Lebanon has always been under constant political and social challenges because of its location between the east and the west.|190x190px]]
* Economic revival and [[sustainable growth]], with the private sector as the engine of growth;
* Fiscal consolidation and structural improvement in public sector finances; and
* Monetary, financial, and price stability.

The government also has maintained a firm commitment to the Lebanese pound, which has been pegged to the dollar since September 1999. In late 2000, the government substantially reduced customs duties, adopted export promotion schemes for agriculture, decreased social security fees and restrictions on investment in real estate by foreigners, and adopted an open-skies policy, with positive effects on trade in 1991. Nonetheless, the relative appreciation of the Lebanese currency has undermined competitiveness, with merchandise exports falling from 23% of GDP in 1989 to 4% in 2000.

In 2001, the government turned its focus to fiscal measures, Increasing gasoline taxes, reducing expenditures, and approving a value-added-tax that became effective in February 2002. Slow money growth and [[dollarization]] of deposits have hampered the ability of commercial banks to finance the government, leaving more of the burden to the [[Banque du Liban|central bank]]. This monetization of the fiscal deficit has put enormous pressure on central bank reserves, mitigated only slightly with the issuance of new [[Eurobond (international)|Eurobonds]] over the past 2 years. The central bank has maintained a stable currency by intervening directly in the market, as well as low inflation, and succeeded in maintaining investors' confidence in debt. It has done so at a cost, however, as international reserves declined by $2.4 billion in 2000 and by $1.6 billion in the first half of 2001.

For 2002, the government has put primary emphasis on privatization, initially in the telecom sector and electricity, with continued planning for sales of the state airline, Beirut port, and water utilities. The government has pledged to apply the proceeds of sales to reducing the public debt and the budget deficit. In addition, it projects that privatization will bring new savings as government payrolls are pared, interest rates decline, and private sector growth and foreign investment are stimulated. The government also is tackling the daunting task of administrative reform, aiming to bring in qualified technocrats to address ambitious economic programs, and reviewing further savings that can be realized through reforms of the income tax system. The Lebanese Government faces major challenges in order to meet the requirements of a [[fiscal adjustment]] program focusing on tax reforms and modernization, expenditure rationalization, privatization, and improved debt management.
[[File:Montagnes Faraya.jpg|thumb|200x200px|[[Faraya]] in Mount Lebanon Governorate. The [[Lebanese economy]] depends on its tourism sector throughout all seasons of the year. Tourists from Europe, GCC, and Arab countries visit Lebanon for various reasons.]]

The U.S. enjoys a strong exporter position with Lebanon, generally ranking as Lebanon's fourth-largest source of imported goods. More than 160 offices representing U.S. businesses currently operate in Lebanon. Since the lifting of the passport restriction in 1997 (see below), a number of large U.S. companies have opened branches or regional offices, including [[Microsoft]], [[American Airlines]], [[Coca-Cola]], [[FedEx]], [[United Parcel Service|UPS]], [[General Electric]], [[Parsons Brinckerhoff]], [[Cisco Systems]], [[Eli Lilly and Company|Eli Lilly]], [[Computer Associates]] and [[PepsiCo|Pepsi Cola]]. Mexico has also many enterprises run by ethnic Lebanese, such as [[Carlos Slim]]'s [[Telmex]].

Solidere shares are the most actively traded in the Beirut Stock Exchange. Its share price in the [[Beirut Stock Exchange]] has risen sharply in the last year from around US$5.00 in early 2004 to close at US$17.50 on Friday, 23 December 2005.

In 2025, Lebanon amended its banking secrecy laws under pressure from the IMF. The reforms would allow independent auditors access to banking records from the past 10 years in an effort to stop corruption and facilitate a larger restructuring of the Lebanese banking industry.<ref>{{Cite web |date=24 April 2025 |title=Lebanon passes banking secrecy law in third attempt to meet IMF demands |url=https://www.reuters.com/world/middle-east/lebanon-passes-banking-secrecy-law-third-attempt-meet-imf-demands-2025-04-24/ |website=Reuters}}</ref>