The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Jordan's initiatives to reduce its energy dependency could have substantial macroeconomic
implications, but will crucially depend on the level of international oil prices in the next
decade. Significant uncertainties remain regarding the feasibility of the initiatives and their
potential fiscal costs, including from contingent liabilities, could be very large. Given the
lead time required for such major investments, work should start now on: (i) conducting
comprehensive cost-benefits analysis of these projects; (ii) addressing the challenges arising
from the taxation of natural resources; and (iii) designing a fiscal framework to anchor fiscal
policies if revenue from these energy projects materializes.