How much could phasing out energy subsidies save the Middle East?

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Phasing Out Energy Subsidies Could Save the Middle East US$336 Billion

Phasing out explicit energy subsidies in the Middle East could result in savings of US$336 billion (RM1.6 trillion). This substantial financial benefit is equivalent to the combined economies of Iraq and Libya.
Significant Financial Savings Identified

The International Monetary Fund (IMF) has projected that eliminating explicit energy subsidies across the Middle East could yield considerable financial gains. The estimated saving of US$336 billion is a significant figure, highlighting the economic impact of these subsidies.
Equivalent to Combined Economies of Iraq and Libya

To contextualise the scale of these potential savings, they are noted to be equivalent to the total economic output of both Iraq and Libya combined. This comparison underscores the magnitude of the financial resources that could be freed up.
Additional Benefits Beyond Financial Savings

Beyond the direct financial savings, the IMF also points to other advantages of phasing out these subsidies. Eliminating regressive energy subsidies is understood to discourage pollution and can help improve the allocation of resources towards social spending.

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How much could phasing out energy subsidies save the Middle East?

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