Egypt committed to continue with structural reforms: Min.

CAIRO - 16 October 2023: Minister of Finance, Mohamed Maait, affirmed that the Egyptian government continues its path of structural reforms by adopting balanced policies that consider the social dimension. These policies are based on financial discipline and a positive approach to dealing with the negative effects imposed by complex global crises. This approach aligns with efforts to achieve sustainable growth rates that enable us to enhance our ability to avoid the sharp risks of external shocks.

 

The Minister, during his meeting with Antoinette Monsio Sayeh, Deputy Managing Director of the International Monetary Fund (IMF), and  Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, on the sidelines of their participation in the annual meetings of the IMF and World Bank in the Moroccan capital, Marrakech, emphasized Egypt’s keenness for continuous coordination with the International Monetary Fund to maximize avenues of mutual cooperation that help achieve development, financial, and economic objectives. 

 

He also highlighted the Egyptian government's commitment to deepening private sector participation in economic activity through a package of incentives and integrated measures, including establishing a strong and flexible infrastructure and abolishing preferential treatment for state-owned entities and companies, in order to achieve the principle of equal opportunities and maximize competitiveness between the public and private sectors. 

 

Moreover, the government launched the "State Property Policy Document," which aims to increase private sector contributions to the gross domestic product. The "Government Offerings Program" was also introduced, through which the government put up 35 state-owned companies in 19 economic sectors for more opportunities available for private investments.

 

The eligible companies to be offered from October 2023 to June 2024 have been identified, with an estimated value of up to $4 billion. Additionally, the "Golden License" helps to expedite the establishment of investment projects in the shortest possible time, contributing to creating a more stimulating environment for industry, production, and export.

 

The Minister pointed out that the state has achieved positive economic indicators over the past nine years, compared to about 43 years ago, despite the extremely difficult successive economic challenges experienced in the international arena. 

 

The budget deficit rate to GDP has decreased from 13.8 percent in the fiscal year 1981/1982 to 6 percent in June 2023, and the government expects it to decrease to 5 percent in June 2027. The state achieved an initial surplus in the fiscal year 2017/2018 and maintained it for six years, reaching 1.6 percent of GDP in the fiscal year 2022/2023, with the aim of achieving a larger initial surplus in the current fiscal year 2023/2024, reaching about 2.5 percent.

 

The Minister stated that the government is committed to moving forward in implementing the public debt management strategy to put the debt-to-GDP ratios on a downward path by extending the average maturity of the debt and reducing its service cost. 

 

He pointed out the decrease in the debt-to-GDP ratio from 159 percent in the fiscal year 1980/1981 to 95.7 percent in June 2023, and the government aims to reduce it to 75 percent in 2027. Additionally, the state aims to diversify funding sources by entering new and diverse markets and introducing easy and low-cost financing instruments.