# Maldives economic and diplomatic initiatives

> Developing situation record from CLSTR: https://clstr.news/situations/maldives-economic-and-diplomatic-initiatives
> Updated: 2026-10-28T06:42:17.000Z. Sources: 22. Developments: 3.

Maldivian President Mohamed Muizzu has engaged in efforts to strengthen international relations and domestic economic structures. In late October 2026, President Muizzu conducted a three-day state visit to Pakistan, the first by a Maldivian president in 11 years, coinciding with the 60th anniversary of diplomatic relations between the two nations. This visit resulted in the signing of 20 memorandums of understanding across sectors such as defense, maritime security, cybersecurity, trade, education, healthcare, technology, and climate cooperation. While the administration aims to increase bilateral trade with Islamabad, the strengthening of ties has drawn criticism from political opposition, with warnings that closer security cooperation could “potentially damage relations with India.”

Parallel to these diplomatic efforts, President Muizzu is actively seeking Chinese investment to drive economic diversification. At the China-Maldives Investment Cooperation Forum, he called for partnerships that prioritize job creation, skill development, and industrial growth. He emphasized that the China-Maldives Free Trade Agreement, which entered into force on January 1, 2025, is essential for his “Vision 2040” goal. Between January 2025 and August 2026, the Maldives imported approximately USD 440 million in goods from China, with USD 124 million processed under the agreement’s preferential arrangements. The forum included representatives from over 40 Chinese companies and targeted sectors such as fisheries, renewable energy, food security, and digital technology.

Domestically, the administration is implementing structural reforms and fiscal adjustments. Finance Minister Hassan Zareer has proposed a 59.7 billion rufiyaa state budget for 2027, a decrease of approximately 4 billion rufiyaa from the current year, intended to reflect fiscal reforms and reduced state expenditure. Additionally, the government is restructuring healthcare via the ‘Maldives Tertiary Hospitals Group’ and addressing housing needs through the Rasmalé project and Hulhumalé developments.

## Claims

- President Mohamed Muizzu announced financial and regulatory measures to support Maldivian SMEs. (reported by 2 sources)
- SMEs will be allowed to accept international payments in US dollars via the Bank of Maldives Gateway starting November 1. (reported by 1 source)
- A five-year exemption from import duties on raw materials for MSMEs will begin on January 1, 2027. (reported by 1 source)
- The mandatory GST registration threshold will rise from 1 million to 1.5 million Maldivian Rufiyaa (MVR). (reported by 1 source)
- A three-year pilot initiative in Addu City will offer income tax waivers and rent exemptions on state-leased land. (reported by 1 source)
- Expatriate worker quotas in Addu City's pilot program will increase from 20 to 30. (reported by 1 source)
- The government will launch the second phase of a dedicated youth loan scheme in November. (reported by 1 source)

## Timeline

### 2026-10-28: President Muizzu promotes China-Maldives economic partnerships

President Mohamed Muizzu is seeking to deepen China-Maldives economic ties through partnerships focused on jobs, skills, and industrial growth, leveraging a recent Free Trade Agreement.

5 sources. https://clstr.news/cluster/president-muizzu-seeks-chinese-investment-for-maldives

### 2026-10-27: Maldives President Muizzu visits Pakistan to sign 20 agreements

Maldives President Mohamed Muizzu signed 20 MoUs with Pakistan during his first visit in 11 years, focusing on defense and maritime security amid domestic concerns regarding ties with India.

4 sources. https://clstr.news/cluster/maldives-president-muizzu-visits-pakistan-to-sign-20-agreements

### 2026-10-20: Maldives President Muizzu visits Pakistan to strengthen ties

Maldivian President Mohamed Muizzu is on a three-day state visit to Pakistan, signing 20 MoUs and setting a target to boost bilateral trade to $200 million within two years.

17 sources. https://clstr.news/cluster/maldives-president-mohamed-muizzu-begins-state-visit-to-pakistan

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Cite as: Maldives economic and diplomatic initiatives. CLSTR, https://clstr.news/situations/maldives-economic-and-diplomatic-initiatives