Plan to revive the economy
adopted by the private sector

An alternative focusing on growth rather than liquidation

LeadersClub, an initiative by Lebanon Opportunities, has published ‘Relaunch 2025’. It is a transformative economic recovery plan. The forward-thinking framework has been endorsed by the Economic Associations representing all private sector organizations, and over 250 companies and economists. The road map aims to shift the focus from crisis management to sustainable growth and long-term stability.

A New Approach to Economic Recovery
Unlike previous government strategies that narrowly concentrated on the financial sector while neglecting broader fiscal, administrative, and social reforms, ‘Relaunch 2025’ presents a comprehensive roadmap designed to rebuild trust, stimulate economic growth, and involve key stakeholders in the decision-making process. Past recovery efforts inadvertently worsened Lebanon’s financial turmoil, leading to liquidity shortages, depletion of foreign reserves, capital flight, and an uncontrolled black market. Recognizing these shortcomings, the new plan proposes an inclusive and participatory approach, engaging trade organizations, labor unions, and professional associations to ensure balanced and effective policy-making.

A Shift from Liquidation to Growth
In a departure from past methods, ‘Relaunch 2025’ prioritizes economic expansion over financial loss estimation. By focusing on job creation, wage growth, and balancing state revenues and expenditures, the plan seeks to gradually address divisive economic issues while fostering public confidence. The strategy advocates for an immediate economic stimulus alongside sustainable long-term policies, ensuring steady progress toward recovery.

Core Pillars of the Plan

1. Socio-Economic Pact and Financial Stability
Central to the plan is the creation of a new socio-economic pact that redefines public sector wages, minimum salaries in the private sector, social security, and taxation policies. A key element is the proposed rescue and recapitalization of the National Social Security Fund (NSSF), reinforcing social safety nets to protect vulnerable populations.

The plan calls for revitalizing banking activities with “new money,” ensuring financial stability by insulating fresh funds from pre-2019 liabilities. This strategy aims to rebuild confidence in the banking sector, attracting investments and facilitating economic revitalization.

2. Exchange Rate Liberalization and Debt Restructuring
A major pillar of ‘Relaunch 2025’ is the liberalization of the Lebanese pound’s exchange rate, eliminating the need for the Central Bank to maintain extensive foreign exchange reserves. By allowing market forces to determine the currency’s value, the plan anticipates a natural stabilization of the current account.
Public debt restructuring also features prominently, incorporating debt forgiveness mechanisms and foreign currency debt restructuring to reduce Lebanon’s debt burden. These measures are expected to ease fiscal pressures and promote economic resilience.

3. Privatization and Public Sector Efficiency
To enhance efficiency and generate public revenue, the plan advocates for the privatization of key utilities, including electricity and telecommunications. These sectors would be managed by a Sovereign Holding Company (SHC), ensuring improved service delivery while redirecting revenues toward poverty alleviation programs. The proposed Poverty Alleviation Fund, backed by SHC revenues and international donors, would replace inefficient subsidies with targeted financial assistance to those in need.

4. Phased Fiscal Reforms and Private Sector Growth
The proposed fiscal reforms include a phased approach to taxation, initially eliminating direct taxes for most sectors—excluding financial institutions, insurance firms, and large holding companies—while increasing indirect taxation to sustainable levels. This strategy aims to stabilize the economy before implementing a comprehensive tax overhaul.
To stimulate private sector expansion, the plan outlines over 250 initiatives to remove bureaucratic barriers and incentivize investment across various industries. Additionally, the acceleration of oil and gas exploration in undisputed maritime areas is identified as a key priority to boost Lebanon’s economic prospects and risk profile.

Short- and Medium-Term Goals
In the short term, ‘Relaunch 2025’ is expected to drive GDP growth, create jobs, raise wages, and improve fiscal health, thereby restoring confidence in Lebanon’s financial system. Over the medium term, the plan focuses on modernizing the public sector, streamlining government operations, and integrating digital governance to enhance efficiency and transparency.

Addressing Past Financial Liabilities
While focused on future growth, the plan does not ignore past financial obligations. It proposes a temporary moratorium on debt repayments, allowing time for economic stabilization before determining fair repayment terms. Additionally, it underscores the existence of significant national reserves—estimated at $35 billion, including $25 billion in gold and over $10 billion in foreign currency—advocating for their strategic use to fuel economic growth rather than covering past losses.

A Forward-Looking Vision
With an emphasis on sustainable development, institutional trust, and economic inclusivity, ‘Relaunch 2025’ offers a structured path forward for Lebanon. By prioritizing stakeholder participation, pragmatic fiscal policies, and structural reforms, the plan aspires to create a resilient and prosperous economic future for the nation.