Among the Gulf nations, Kuwait is showing the most serious intent to introduce far-reaching economic reforms in the aftermath of the sustained oil price drops.

There is a logic to the move, as Kuwait happens to be uniquely dependent on the oil sector for the well-being of its economy. The petroleum sector at large contributes around 90 per cent of the treasury income, 85 per cent of the state’s exports and 40 per cent of gross domestic product. Hence, the very talk of economic reforms should not come as a surprise.

Among other measures, the authorities are exploring the idea of privatising the co-op society stores, a move not popular in some circles within the country. Such a development would be extraordinary as the more than 50 co-op department stores control about 70 per cent of total retail activities in Kuwait, certainly a substantial share.

It is suggested that the cooperative movement in Kuwait, which dates back to 1962, laid the foundation for a similar development in other countries in the region. In fact, the Kuwaiti Union for Cooperative Societies is deemed as a model for championing the case of a co-op businesses.

On a positive note, the inflation rate in Kuwait is not a source of headache, thanks in part to the co-op stores as they try to maintain relatively low prices and therefore in an enviable position when it comes to enticing and retaining clients. The occurrence of low prices undermines possible competition from much smaller retail stores, which anyway try to compete on the basis of staying open for longer hours and where possible round-the-clock.

However, the programme is a burden on the government, as it is expected to provide assistance and protection for cooperative stores. By and large, their prices tend to be cheaper than in the open market, with the government footing the bill.

Aside from curbing expenditures, officials have moved to enhance treasury income through practices common elsewhere. As of January, the government has opted for imposing fees on aircraft passing through its airspace. Even then, certain flights are excluded from paying the new fees if the journey starts and ends in Kuwait.

Moreover, the government is considering re-engineering its expensive subsidy programme. It is argued that the total cost of these schemes amount to an exorbitant $18 billion. This is a sizeable when compared to the total revenues for fiscal year 2014-15, which ends in March.

Kuwait has a population of just above four million, with locals making up less than a third of the total. Like other GCC states, Kuwait deserves commendation for providing jobs to immigrant workers. Yet, a revisiting of the subsidy programme is a correct move if the objective is to grant support to the needy.

In this context, no differentiation should be made between locals and foreign nationals provided that they are qualified to receive state subsidised goods and services. Clearly, the sharp drop in oil prices is providing officials with a historic opportunity to look for ways to address sustained economic shortcomings like high staffing levels in government departments.

It is acknowledged that about 90 per cent of locals work in state enterprises, something unique by all means.

Kuwait has the fourth largest economy within the GCC after Saudi Arabia, the UAE and Qatar. It is moving slowly but steadily to carrying out concrete economic reforms.

While such an intention is vital, the will to implement matters most.

The writer is a Member of Parliament in Bahrain.