Jordan's Government Shake-Up

Jordan's Prime Minister Bisher Khasawneh resigned following a parliamentary election that saw gains for the Islamist opposition. Jaafar Hassan is expected to replace him, facing the challenge of Gaza war impacts on the economy. Reforms aimed at reversing sluggish growth are at stake with a new vocal opposition in parliament.

Jordan's Prime Minister Bisher Khasawneh submitted his resignation on Sunday, officials familiar with the matter said, less than a week after a parliamentary election that saw some gains for the Islamist opposition in the U.S.-allied kingdom.

U.S.-educated Jaafar Hassan, who is currently head of King Abdullah's office and a former planning minister, is expected to replace Khasawneh, a veteran diplomat and former palace advisor who was appointed nearly four years ago, the officials told Reuters on condition of anonymity. Hassan will face challenges such as mitigating the impact of the Gaza war on the kingdom's economy, which has been hard hit by curbs to investment and a sharp drop in tourism.

The outgoing prime minister had sought to push reforms advocated by King Abdullah to help reverse a decade of sluggish growth that has hovered around 2%, worsened by the pandemic and conflict in neighboring Iraq and Syria. The Muslim Brotherhood opposition and ideological allies of the Palestinian militant group Hamas made significant gains in Tuesday's election, boosted by anger over Israel's war in Gaza.

The new composition of the 138 member parliament retains a pro-government majority; however, a more vocal Islamist-led opposition could challenge IMF-led free-market reforms and foreign policy.

(With inputs from agencies.)