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in Politics
December 31, 2025

Fattah Al-Alawi lays out a roadmap for pension reform and reveals a “billion-dollar” total for social support.

Fattah Al-Alawi lays out a roadmap for pension reform and reveals a “billion-dollar” total for social support.
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Minister of Economy and Finance, Nadia Fettah Alaoui, acknowledged the complexity of pension system reforms, describing it as a “thorny and intricate” issue that requires political courage free from opportunism and political bickering. During a session of oral questions in the House of Councillors, the minister emphasized that the government prioritizes this reform to build a sustainable system that ensures the rights of future generations, stressing that a participatory approach is the only pathway to realistic solutions.

The minister announced the resumption of work by the National Technical Committee for Pension Reform, noting that the work would rely on data-driven analysis and update the data of the four pension funds in a fully transparent manner with social partners. She explained that the first step had already begun with an agreement on a “joint diagnosis” of the funds’ situation, enabling all parties to develop proposals and visions based on precise data rather than just general estimates.

In the domain of social protection, Fettah Alaoui revealed a “heavy” outcome for the direct social support program, stating that the allocated financial resources reached 49 billion dirhams between December 2023 and November 2025. This funding is divided into 31 billion dirhams for the childhood sector (representing two-thirds of the support) and 17 billion dirhams for lump-sum grants. The minister also shared good news with beneficiary families, announcing the launch of a new phase to enhance support starting November 2025, which will include a notable increase in allowances for schoolchildren, orphans, and children with disabilities.

To ensure the effectiveness of this royal initiative, the minister highlighted the crucial role of the unified social registry in refining targeting, announcing the imminent activation of the “National Agency for Social Support” through the establishment of regional and territorial representations to ensure direct communication with citizens and continuously improve the services provided to them.

Regarding support for purchasing power, the government official outlined the “expansion of the middle class” strategy, emphasizing that the government is working across four main axes, which include tax reform through a review of the income tax in the 2025 budget, facilitating access to primary housing through direct support, in addition to improving public education and the health system to reduce financial burdens on families. The minister concluded her remarks by asserting that engagement in these vital issues is a “shared responsibility” that requires prioritizing the public good to ensure the stability and growth of Moroccan society.

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Tags: economic policyfinancial transparencygovernment strategymiddle class expansionNadia-Fattahparticipatory approachpoverty alleviationretirement reformsocial supportsocial welfare

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