Yemen government curbs travel, recruitment in austerity drive

Yemen's President Abd-Rabbu Mansour Hadi enters the hall during the closing ceremony of the Yemeni national dialogue conference in Sanaa January 25, 2014. REUTERS/Mohamed al-Sayaghi

DUBAI (Reuters) - Yemen's president has ordered a raft of austerity steps, including a review of state-owned companies' viability and curbs on foreign travel by government officials, to ease pressure on the impoverished state's crumbling public finances.

Sanaa has struggled to pay public sector salaries and finance food and energy imports, which has led to power cuts and fuel shortages as a fight against al Qaeda militants and other rebel groups undermines the state budget.