Lebanon's public sector is grappling with significant financial challenges, illustrated by two critical figures: the $5.6 billion spent on public sector wages in 2019 and the anticipated expenditure of $1 billion by 2024, covering both active and retired personnel in military and security roles.

This $4.6 billion reduction over five years presents both opportunities and challenges.

On one hand, the reduction means that about $5 billion, previously paid in Lebanese pounds and often exchanged for dollars, was circulating in the economy, aiding in the import of goods and stimulating external trade.

On the other hand, the stark decrease highlights the dire situation of public sector wages, which have plummeted well below the threshold of decency in Lebanon.

The quandary lies in adjusting these wages. Increasing them in Lebanese pounds could potentially lead to a repeat of the financial missteps that contributed to Lebanon's economic downfall. Conversely, without any adjustments, many public sector workers could face severe financial distress.

This conundrum has led to a blame game among the Lebanese government, the Central Bank of Lebanon (BDL), and the financial institutions, as they shuffle the responsibility for this predicament among themselves.