Fayyaz Ismail, the former chairperson of the main opposition Maldivian Democratic Party (MDP) accused President Dr. Mohamed Muizzu’s administration of pursuing economic ruin on Sunday, as he welcomed the decision by Dr. Ahmed Inaz to resign as chairperson of the board of Maldives Pension Administration Office (MPAO) over the proposed MVR 2.4 billion pension fund investment in government bonds.
In October, the board of the MPAO approved a decision to sell a government bond in the secondary market in collaboration with the central bank – a move that critics warn will have the same economic implications as money printing.
Inaz, who previously defended the decision, resigned from the MPAO on Sunday.
Reacting to his resignation, Fayyaz, who served as economic minister in the previous administration, took to X to accuse President Muizzu of “bludgeoning” the constitution, “railroading” democracy and pursuing “nothing short of economic ruin.”
“The rhetoric of fiscal and SOE reform is pure gaslighting, a bigly beautiful lie and disastrous in execution,” he wrote.
He expressed concern that the grants secured and delivered in 2025 amounted to barely 15 percent of what was budgeted, while salaries and wages increased by over MVR 1 billion.
“Revenue rose, but spending rose faster. Businesses are still owed billions by the state. Infrastructure stalled while FX policy failed. Households are bearing the cost through rising prices,” he wrote. “Now a fresh injection of “printed” debt, followed by a shakeup of the pension board, after resignations and removals.”
Fayyaz said that what comes next is borrowing at 14 percent interest, or worse.
“This is not something an independent sovereign state does. And it's a sign things are going to get a lot worse. And quite simply it's distress borrowing and not proper refinancing of any sort. The yield simply reflects the astronomical risk premium markets are pricing in after failed policy and rising economic uncertainty,” he wrote.
Fayyaz blamed this on “a direct result of mismanagement and the ludicrous excesses of the government and expansion of the state instead of fiscal reform.”
“Chaotic policies led to today’s debt refinancing mess. And this was entirely avoidable. Markets are watching. So are all Maldivians,” he wrote.
Fayyaz thanked Inaz for his “integrity and courage”.
“Thank you @ahmedinaz1 for standing your ground. We need more good men to stand up to dictatorship,” he wrote.
Announcing his resignation in a post on X earlier on Sunday, Inaz said that extensive discussions regarding the government’s MVR 2.4 billion bond proposal at a time when the state’s finances had deteriorated to an alarming level have failed to produce any sustainable solutions.
Inaz said that he believes that securing money for the transaction through the MMA will be significantly damaging to the economy, and was therefore resigning from the MPAO.