MUSCAT: Oman is not facing a credit crunch but the Sultanate has to speed up implementation of fiscal reforms like the introduction of a value-added tax (VAT), an IMF official said.

 “Oman needs to keep on the adjustment agenda that was articulated a few years back when we saw a dip in oil price… I think it’s very important to keep and accelerate some of the highlighted reforms like the introduction of the VAT,” said Jihad Azour, IMF Middle East and Central Asia director.

“If they do the right steps, they are not heading to a credit crunch,” Azour had told Reuters this week.

Azour said Oman’s plans to gradually remove its subsidy system and diversify revenues outside of oil were among the reforms the country would need to work on.

“They have already in their plans what is needed. What is important now is to accelerate the implementation of these reforms,” he said.

With inputs from agencies