They reported that nearly half a billion dollars are lost to khat across Somalia, highlighting that Puntland in particular suffers severe economic damage due to its consumption, as stated in their official declaration.

“Khat causes serious problems for our society. Migration and illegal movement will continue unless we address the economic issues, of which khat is a part. As parliamentarians, we have a responsibility. In developed countries, it is banned,” said MP Kuluc.

The lawmaker cited several countries, including the United States and the United Kingdom, where khat is prohibited in order to control economic and social challenges.

“The United States banned it 25 years ago. In the UK, other European countries, and many Arab nations, khat is not consumed. The only Arab country where it is still used is Yemen, which is itself struggling. A significant portion of people’s money is wasted on khat, and it negatively impacts our economy, health, and morals,” MP Kuluc added.

Discussions about plans to ban khat have begun in areas of Puntland, with differing opinions emerging among the stakeholders on both sides of the debate.

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The session, chaired by Speaker Abdirisak Ahmed Said and Second Deputy Speaker Mohamed Mohamud Esse, marked the 21st sitting of the 56th parliamentary term.

Lawmakers voted by majority to fast-track the presentation of the budget execution report for this fiscal year.

According to the Ministry of Finance, Puntland’s total budget for 2024 stands at $387.5 million, reflecting a 3% increase compared to the previous year.

The largest portions of government expenditure have gone toward security services, public sector salaries, decentralization, and essential social services.

However, the Finance Ministry also reported a decline in donor funding—particularly development grants previously channeled through the Federal Government of Somalia.

Officials attribute the drop to ongoing political tensions between Garowe and Mogadishu.

In his address to Parliament, Minister Farah stated that the 2024 budget, excluding World Bank grants, allocated $121.2 million from domestic revenue and direct budget support.

The government had aimed to collect $98.8 million in domestic revenue, and as of now, $98.8 million has been collected, with a minimal shortfall of $17,627.

“This means that 99% of Puntland’s domestic revenue collection plan has been achieved,” the minister told the parliament in Garowe.

The execution report has been referred to the Parliamentary Committee on Finance, Economy, and Accounts, which will conduct a second reading.

The committee is expected to return the report to the full House on July 29, 2025, for further debate and final approval.

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In his remarks, President Deni warned that Somalia’s system of governance is at risk of imminent collapse, citing the deterioration of state institutions.

He noted that growing insecurity has forced many citizens to flee the country in search of safety.

President Deni also accused Somali President Hassan Sheikh Mohamud of undermining the fragile federal system, alleging that his administration has contributed to the ongoing political disintegration.

The Puntland Parliament resumed its sessions today and is expected to discuss a range of key issues on its agenda.

Puntland, a semi-autonomous state in northeastern Somalia, cut ties with Mogadishu two years ago following President Hassan Sheikh Mohamud’s unilateral amendment of the federal constitution.

“We are at a point where all Somali people must awaken,” said President Deni. “I am calling on all Somali politicians, wherever they may be, to prioritize the salvation of the country above all else and work together to restore stability without pursuing personal or political interests.”

He warned that if the country fails to navigate this critical stage, it risks fragmentation and disintegration—recovery from which could take a long time.

President Deni stated that Puntland is ready to support the establishment of a functional federal government in Somalia, where every citizen can play their role.

He also expressed his support for the recently launched National Salvation Forum by opposition figures in Mogadishu, describing it as a unifying platform for those opposing President Hassan Sheikh Mohamud’s administration.

President Deni’s speech in Garowe comes as the Federal Government in Mogadishu postponed a scheduled meeting of the National Consultative Council (NCC), a forum comprising federal and regional state leaders.

Both Puntland and Jubaland have withdrawn from the NCC, accusing it of being used to advance President Mohamud’s political agenda.

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