Government Celebrates Two Years in Office with Ongoing Structural Reforms and Commitment to Sustainable Development

On July 1^st, 2025, Timor-Leste marked the second anniversary of the start of the IX Constitutional Government, led by Prime Minister Kay Rala Xanana Gusmão, on a path marked by structural reforms and a commitment to sustainable, inclusive and people-centered development. 

Over the last two years, the Government has launched structural reforms in the justice sector, with measures designed to improve access, efficiency and citizens' trust in judicial institutions. At the same time, it began to implement the reform of public finances, with the aim of ensuring greater transparency, budgetary sustainability and efficiency in the management of State resources.

Preparations are also underway for the reform of the Public Administration, with a focus on modernizing services, enhancing human resources and improving the quality of public services provision throughout the country. In this context, the Government has already implemented the One-Stop Shop in several municipalities and plans to expand it to all the country's municipalities, to facilitate citizens' access to essential administrative services in an integrated, efficient way that is close to the communities. 

In the oil and mineral resources sector, the Government has promoted the revision of the governance structure, and the adoption of policies aimed at ensuring more efficient and strategic management of natural resources, with a view to diversifying the economy and boosting national revenues.   Public investment has been geared towards structural areas, with the implementation of a road rehabilitation and construction plan, the normalization of streams, the improvement of water supply and sanitation and the expansion of the electricity grid, especially in rural areas.     In the agricultural sector, new irrigation systems have been rehabilitated and built, modern agricultural equipment has been distributed, and various initiatives have been promoted to boost national production and improve the living conditions of communities.

In the field of education, the Government has prioritized building a comprehensive higher education system, regulated by strict quality standards, in line with the National Qualifications System. The approval of the new Higher Education Framework Law (Law no. 6/2024, of July 17^th) marks a significant step forward in this process, to strengthen the quality of education, diversify the training offer in strategic areas and ensure a more effective link between academic training and the labor market.

In primary and secondary education, reforms were made to the process of integrating teachers into careers and to staff management policies, with the aim of ensuring a more equitable and efficient distribution of teachers to help improve the quality of teaching. The National School Meals Program was also strengthened, with the aim of promoting not only food security and school performance, but also the sustainable development of communities through the enhancement of local agriculture.

 In the area of child nutrition and health, the government has approved the National Multisectoral Nutrition Plan to Combat Dwarfism 2024-2030, with a focus on preventing chronic malnutrition among children through integrated actions in the health, education, agriculture, social protection and water and sanitation sectors. This plan is a strategic response to the high rates of dwarfism in the country, with a direct impact on human development and future productivity.

In the strategic infrastructure sector, we would highlight the progress of the fiber optic cable connection project and the launch of the rehabilitation project for the Presidente Nicolau Lobato International Airport, which are essential for improving the country's connectivity, attracting investment and promoting economic growth.

In the economic and environmental sphere, the national blue economy policy, currently under public consultation, is being finalized, with the aim of promoting sustainable management of marine resources and stimulating job and income creation in sectors linked to the sea.

In macroeconomic terms, GDP is expected to grow by 2.7% in 2026, in the context of budgetary consolidation, after an estimated growth of 4.3% in 2025. The inflation rate continues a downward path, with a projection of 1.8% for 2025, and should stabilize at around 2% over the next five years.

Internationally, the government strengthened Timor-Leste's diplomatic presence, consolidated relations with traditional and strategic partners and relaunched foreign policy with a focus on national interests, sovereignty and Timorese identity. Of note is the accession to the World Trade Organization and the progress made in preparing for full membership of ASEAN, scheduled for October 2025.

The Minister for the Presidency of the Council of Ministers and Government Spokesperson, Agio Pereira, stresses that "these two years represent a joint effort by the Government to lay the foundations for a more solid, fairer and more prosperous future for all Timorese. The reforms are underway, and the results are beginning to be visible. We will remain firm in our commitment to transform the country and serve the people with responsibility, competence and vision."

The government reaffirms its determination to continue with the reforms it has begun, consolidate the progress made and deepen the dialogue with citizens, putting the public interest and collective well-being at the heart of its action.