Since established, the cabinet of Nawaf Salam is leading a path for comprehensive reforms in order to restore citizens' trust in the Lebanese state. These reforms aim to remove Lebanon from
FATF's grey list, a move that will enable it to receive the financial aid it needs to reconstruct the country's economy.
Economic & financial reform Banking secrecy reform In April 2025 the
Lebanese parliament approved a new law changing the rules on banking secrecy. It now allows certain groups, like independent auditors and financial regulators, to see banking records from the past 10 years. This is important for fighting corruption and meeting the requirements of the
IMF.
Central bank leadership change After nearly two years without a permanent central bank chief,
Karim A. Souaid was appointed as governor of
Banque du Liban. He stated he will help fight money laundering, restore order to the banking system and keep depositors' money safe.
Ban on Hezbollah linked finances On July 14, 2025,
Banque du Liban, had issued a circular prohibiting all licensed financial institutions from engaging in any direct or indirect dealings with
Al-Qard Al-Hasan Association,
Hezbollah’s Iran-backed financial arm, that is subject to U.S. sanctions.
IMF and World Bank engagement In April 2025, a Lebanese delegation participated in the
IMF–World Bank Spring Meetings in
Washington, D.C., where it presented a unified reform vision aimed at addressing Lebanon's protracted financial and economic crisis. Following the meetings, Lebanon secured a $250 million loan from the
World Bank to alleviate its chronic electricity shortages. In January 2026 it was reported that the World Bank approved $350 million in new financing for Lebanon aimed at helping the country's poor and vulnerable populations, strengthening social protection systems, and supporting digital transformation of public services as part of efforts to bolster Lebanon's economic recovery. The package is split into two projects, $200 million for social safety net enhancement and $150 million for digital acceleration.
State authority over arms “Homeland Shield” On 5 September 2025, the cabinet lead by Nawaf Salam, met to review the Lebanese army
Homeland Shield Plan for weapon control presented by General
Rodolphe Haykal, that focuses on the
disarmament of Hezbollah. This decision has a strong international support of the
U.S.,
Saudi Arabia and
France. On 8 January 2025, the Lebanese Forces stated that they have consolidated control in southern Lebanon and are ready to proceed to Phase 2.
Army deployment and operational progress Since the establishment of the new cabinet, The
Lebanese Army has a significant presence in Southern Lebanon, and has according to reports, dismantled more than 500 Hezbollah sites.
2026 budget On 22 September 2025 the Lebanese cabinet approved the 2026 budget. It is considered a major step in the economic reforms Lebanon going through. The budget key points are to achieve zero deficit, boost tax compliance, and improve revenues. The new budget does not impose new taxes, but will increase enforcement on the existing ones.
2026 Election On 2 October 2025, it was reported that for the upcoming 2026 elections, the Lebanon's Foreign Ministry had launched a new online platform, for Lebanese diaspora to use for registration and then voting.
War on drugs Since established the Lebanese government increased its efforts to dismantle drug networks, one of Hezbollah's finance networks, achieving success with several raids. Authorities have exposed a smuggling network planning to export 6.5 million Captagon pills and around 720 kg of hashish to
Saudi Arabia, they arrested the leader and his associates. In one of the country's biggest bust, they conducted a raid in
Baalbek, where the army seized 64 million Captagon pills, precursor chemicals, and drug‐manufacturing machinery. Lebanese forces collaborated with regional forces to find and destroy a Captagon drug factory in the
Bekaa Valley, based on intel from
Iraq and used joint intelligence centers with
Syria,
Jordan, and Iraq. According to the
governments law, the state is the only one legally allowed to make decisions regarding war and peace, requiring Hezbollah to turn over it weapons to the government. In an interview to
Asharq Al-Awsat he said “We could have avoided being impacted by the conflict were it not for the strategic error committed by Hezbollah by being dragged us into it,”
Ban of IRGC On 5 March 2026, it was announced that all activity of the Iranian
IRGC in Lebanon is banned. In addition, it was decided that Iranians now require a visa to enter Lebanon. === Possible legal action against
Naim Qassem === On 7 March 2026 it was reported that
Adel Nassar, the Minister of Justice is considering to take legal action against Hezbollah Secretary General Sheikh
Naim Qassem. According to reports this comes in response to controversial remarks by Qassem that accused the Lebanese government of carrying out Israeli orders.
Declaration of Iranian ambassador as Persona Non Grata On March 24, 2026, the Lebanese government declared the Iranian ambassador
Mohammad Reza Raouf Sheibani, as
Persona Non Grata, withdrawing its approval of his
accreditation. This decision came following what the Lebanese government called "Tehran's violation of diplomatic norms and established practices between the two countries", and its accusations against Hezbollah dragging Lebanon in to war. == Syrian refugees ==