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Stability Under Fire
Policy Brief 7: Relief Under Constraint

How Lebanon’s Ministry of Finance Can Stabilize Businesses and Restart the Economy on Day One After Ceasefire
1.0 Minutes
How can Lebanon support businesses after war without major spending? This brief proposes low-cost fiscal and administrative measures to stabilize firms and preserve economic activity.

In the aftermath of conflict, economic recovery depends not only on reconstruction spending but also on the ability of institutions to reduce uncertainty and support businesses facing severe liquidity constraints. In this policy brief, Jamal Ibrahim Haidar explores how Lebanon's Ministry of Finance can play a central stabilizing role even under extreme fiscal limitations.

The paper presents a package of administrative and regulatory measures that can be implemented at little or no direct fiscal cost, including tax deferrals, accelerated VAT refunds, customs facilitation, fee waivers, loan restructuring support, and temporary regulatory flexibility. Together, these measures are designed to preserve formal economic activity, reduce business failures, and prevent a deeper slide into informality.

The brief argues that post-conflict recovery requires the Ministry of Finance to move beyond its traditional role as a revenue collector and become an active facilitator of economic stabilization. By changing rules rather than spending resources, government can provide immediate relief while laying the groundwork for longer-term growth and recovery.

Download the full publication here.