Libya on Sunday named a new prime minister, Baghdadi Mahmudi, as part of a major Cabinet reshuffle, Libyan state television reported. Mahmudi replaces former premier Shukri Ghanem, who had held the post since 2003. Ghanem is no longer part of the Cabinet but will head the state-owned Libya National Oil Company, television said. The announcement came as Libya's Cabinet underwent a significant reorganisation with the creation of seven new ministries. A General People's Congress, or parliament, source had earlier told AFP that four new posts were to be named, but did not elaborate on why the reshuffle in the oil-and-gas rich north African country was taking place. The new ministries include agriculture, transportation, higher education, health, housing, social affairs, and industry and electricity which replaces the former energy ministry.
Among the key changes, Finance Minister Mohammed Hwij had been named to the post of deputy prime minister, previously held by Mahmudi. Economy and Trade Minister Abdel Kader Kheir is to be replaced by Taeb Al Safi, and a woman, Huda Aamr, was named as social affairs minister.
The last such cabinet reshuffle was in 2004. Ghanem had held the premier's job since June 2003. Ghanem, who studied in the United States, had tried to move the socialist economy towards a free market model, but his policies were roundly criticised by Libya's local People's Committees, which implement government policy. The committees had previously attacked Ghanem's plans for privatising state companies, freezing salaries and getting rid of subsidies on essential products. Ghanem's successor Mahmudi is a 60-year-old former doctor, who has previously served as health minister. He comes from the western Libyan town of Sorman.