PAM pledges economic formalization, 1 million jobs and MAD 150 billion for purchasing power

Authenticity and Modernity Party (PAM) political bureau member Fouzi Lekjaa said Thursday that efforts to formalize Morocco’s economy should focus on integrating informal businesses rather than simply expanding the tax base.

“We do not want to achieve tax gains from the informal sector, or simply subject it to taxation,” Lekjaa told representatives of the General Confederation of Moroccan Enterprises, or CGEM, during a meeting in Casablanca to present PAM’s election platform ahead of the Sept. 23 parliamentary elections.

Instead, Lekjaa said informal-sector operators should be given a clear and transparent framework in which they can benefit from incentives and support mechanisms, allowing them to develop their businesses and gradually enter the formal economy.

He said 2027 would mark a transition toward concrete measures to formalize economic activity, with the process also involving greater access to banking services, expanded electronic payment systems and clear rules for assessing and declaring income.

Private sector at center of economic strategy

Lekjaa described the private sector as a “driver of development, wealth creation and job creation,” saying businesses should be key partners in achieving the economic and social objectives of PAM’s election platform.

He called for greater room for private initiative, with the state focusing on regulation, support and creating favorable conditions for investment.

Investment should also be freed from administrative obstacles through institutional reforms aimed at improving coordination between public bodies, increasing their efficiency and simplifying procedures, particularly those involving industrial zones and permits, Lekjaa said.

CGEM President Mehdi Tazi, who delivered opening remarks at the meeting, outlined several priorities for the private sector, including financing for very small, small and medium-sized enterprises.

Tazi proposed directing between 3 billion and 4 billion dirhams toward financing such businesses rather than transferring those resources to the state budget.

He said the money could be used through a guarantee mechanism capable of generating a multiplier effect of seven to eight times its initial value when channeled through the banking sector, thereby expanding financing available to businesses.

Tazi said financing was not the only challenge, pointing also to the need to improve companies’ governance and ability to qualify for funding. He called for indicators measuring the volume of bank financing provided to small and medium-sized enterprises.

He also criticized delays in granting investment permits, citing cases in which projects remained stalled for about 18 months despite their potential to create jobs.

Industrial sovereignty and corporate taxation

Tazi also raised what he described as the issue of “industrial sovereignty,” warning that large numbers of jobs can depend on decisions made outside Morocco.

He called for industrial sovereignty to be treated as part of national sovereignty, alongside water and energy security.

On taxation, Tazi called for renewed discussion of the corporate tax rate applicable to large companies, which can reach 35%, arguing that a reduction could strengthen companies’ capacity to invest.

He also proposed consolidating public institutions and agencies responsible for supporting businesses under a unified framework, potentially through a public investment bank combining functions related to small-business support, guarantees, financing and investment funds.

PAM targets 1 million net jobs

PAM’s election platform, described as a growth and sustainability pact, includes measures aimed at expanding private initiative among very small, small and medium-sized enterprises, facilitating their access to public contracts and reducing payment delays.

The party also pledges to support domestic production and develop emerging supply chains.

Among its main targets is the creation of at least 1 million net jobs, alongside support for about 60,000 businesses through incubation, financing, guarantees and market access.

The platform also proposes giving 500,000 young people their first professional experience over five years and reaching 300,000 young people annually through the “Masar Idmaj” platform.

MAD 150 billion purchasing-power package

Lekjaa acknowledged that rising prices have absorbed part of the impact of wage increases and various forms of government support, saying the focus should now be on practical solutions rather than assigning responsibility.

PAM’s platform allocates about 150 billion dirhams to measures under its purchasing-power pact.

The proposals include reforming production and marketing chains, establishing regional agricultural distribution companies to reduce what the party describes as rent-seeking intermediaries, and making electricity bills free for amounts up to 100 dirhams.

The party also proposes raising minimum pensions to 3,000 dirhams and setting a minimum direct social assistance payment of 1,000 dirhams.

Other commitments include achieving 100% health coverage, supporting 500,000 families in securing adequate housing, providing about 100,000 housing solutions for young people between 2027 and 2031, and establishing 1,500 digital civic spaces.

The cumulative additional cost of PAM’s election platform is estimated at about 350 billion dirhams over five years, or roughly 70 billion dirhams annually. About 150 billion dirhams would go toward the purchasing-power pact and 100 billion dirhams toward a citizenship pact.

Lekjaa said implementing the commitments would depend on a strong partnership between the state and the private sector, reiterating that businesses should remain at the center of investment, wealth creation and job creation while informal economic activity is gradually integrated into a clearer and more transparent framework.