Question to the Foreign, Commonwealth & Development Office:

To ask Her Majesty's Government what assessment they have made of the economic situation in Sudan since the loss of revenue following the establishment of South Sudan.

The process that led to the establishment of South Sudan in July 2011 included an agreement on the division of resources and assets with Sudan. This included an agreed 75% reduction of the Government of Sudan's pre-2011 oil revenues, which at that time accounted for the majority of Sudan's foreign exchange earnings. The current economic situation in Sudan is fragile with frequent reports of fuel and food shortages, currency deflation and price inflation creating significant pressures on the people of Sudan. This has been exacerbated by a shortage of foreign exchange. We continue to encourage Sudan to undertake macroeconomic reforms which are essential to making progress towards debt relief and to economic stability for the benefit of the Sudanese people.