Former President Mohamed Nasheed has said the Maldives should repay its debt without undermining the standard of living of its people, arguing that economic growth rather than austerity is the key to meeting the country's financial obligations.

Speaking at a campaign event in Hulhumale' last night, Nasheed said the country must expand economic opportunities and increase national prosperity while ensuring that ordinary citizens are not adversely affected.

His remarks come after the government repaid USD 524.68 million (MVR 8 billion) in sovereign sukuk issued during the administration of former president Ibrahim Mohamed Solih.

Nasheed, who is contesting for the post of chairperson of the opposition Maldivian Democratic Party (MDP), said broadening the country's tax base and increasing the number of contributors to the economy would be essential to sustaining debt repayments.

He also said the Maldives must acknowledge the realities highlighted by international financial institutions, including the International Monetary Fund (IMF), when addressing economic challenges.

Drawing comparisons with countries facing severe debt crises, Nasheed assured that he would not allow Maldives to fall into a debt trap.

"Maldives can pay its debt by becoming richer, not poorer," he said.

"MDP is the party that can do this. I believe this work can be achieved through this party."

Nasheed said his decision to contest the MDP chairperson election was driven by a desire to secure a better future for Maldivians and strengthen the country's position in an increasingly competitive global environment.

MDP chairperson election is scheduled to be held next Friday. Nasheed's opponent is Galolhu South MP Meekail Ahmed Naseem.