Sudanese President Omar al-Bashir dissolved the country's government on Sunday amidst an increasingly dire economic crisis. With the approval of the ruling National Congress Party (NCP), Bashir fired all 31 cabinet ministers including Prime Minister Bakri Hassan Saleh.

"The economic situation needs to be resolved and for this President Bashir decided to cut the government at all levels," Bashir's aide told reporters.

"President Bashir has decided to have a smaller 21-member government," he added.

The former irrigation minister Moutaz Mousa Abdallah is Bashir's new pick for prime minister, and will be tasked with forming the new, smaller cabinet.

Economic meltdown

Sudan has been suffering from an acute economic meltdown, with inflation rising to a staggering 65 percent and stagnant growth that has been difficult to overcome.

Although the conflict-ridden country recorded growth of about 6 percent between 1998 and 2008, it lost much of its oil reserves when South Sudan became independent in 2011.

Hopes that Washington would lift some sanctions against the Sudanese government would boost the economy have also proven futile.

In 2013, the government attempted to save funds by cutting fuel subsidies, leading to fatal clashes between protesters and police in Khartoum.

The World Bank has urged authorities in Sudan to undertake sweeping structural reforms if they want to revive the flagging economy.

es/kl (AFP, Reuters)