Finance Minister says Morocco shielded purchasing power despite global crises

Economy and Finance Minister Nadia Fettah Alaoui said Monday that the Moroccan government has taken extensive measures to protect citizens’ purchasing power, rejecting claims that it had “hidden behind crises.”

Speaking during a House of Representatives question session, Fettah Alaoui said the government “intervened to protect citizens’ purchasing power by supporting a wide range of goods and services,” including subsidies for electricity and transportation costs, as well as tax reductions on several consumer products. She added that these efforts were paired with income improvements resulting from social dialogue agreements.

Fettah Alaoui acknowledged that Morocco had faced multiple consecutive global crises driving price increases but emphasized that the government “did not retreat” from its responsibilities. She noted that the government’s interventions between 2022 and 2025 cost 110 billion dirhams.

According to the Minister, prices of most essential goods have continued to decline year after year, returning to pre-crisis levels, though she admitted that fruit and vegetable prices remained higher through September.

“Inflation in Morocco dropped to 1.1% as of August, after peaking at 13%, while the global average remains above 4%,” she said. “That’s the reality.”

Pension Reform and Low Benefits

Responding to questions about retirement pensions, Fettah acknowledged the “low social coverage” of retirees, particularly those under the National Social Security Fund (CNSS). She said about 19% of private-sector retirees receive pensions below the minimum wage, describing the situation as “unsatisfactory.”

The minister announced that CNSS pensions were raised by 5% retroactively, and the eligibility threshold—previously set at 3,200 days of contributions—was lowered, allowing more than 35,000 new retirees to benefit this year.

Fettah Alaoui reaffirmed the government’s commitment to comprehensive pension reform, coordinated through a national technical committee, adding that any delays are due to the “complexity and social sensitivity of the issue,” not a lack of political will.

Direct Social Support System

Addressing concerns about the direct social support program, Fettah said the initiative is a royal strategic projectgrounded in “transparent and equitable institutional and legal frameworks,” using the Unified Social Registry to identify eligible beneficiaries.

She reported that the number of beneficiary households rose from 2.6 million in January 2024 to 4.9 million currently, covering about 62% of families receiving social assistance, particularly those related to child welfare.

Only 1.3% of applications are rejected monthly, Fettah said, mainly due to changes in household data or declared income discrepancies. The national population registry now includes 5.3 million households, representing around 20 million citizens.

“The government has taken all necessary precautions to ensure fairness and transparency,” Fettah said, emphasizing that “isolated cases of exclusion do not undermine the integrity of the system.”