Cairo – May 28, 2024: Prime Minister Mostafa Madbouly instructed the Ministers of Finance and Petroleum to commence the repayment of 20-25 percent of outstanding debts owed by the petroleum ministry to foreign partners starting next week.
This directive was issued at the conclusion of his inspection tour of projects in Beheira and Alexandria.
The repayment schedule will follow a prearranged agreement between the government and its international partners.
Madbouly highlighted during a press conference following the tour on Monday that Egypt's annual oil and natural gas consumption amounts to approximately $55 billion, serving the essential needs of its citizens.
He highlighted that Egypt was able to secure around $33 billion of the costs, using the local currency, through local production of petroleum products.
The remaining $22 billion are from the dues of the foreign partners who holds the concession and exploration rights in the Zohr field and other projects, and imported products.
The prime minister implied a possible fuel hike as the state aims to “restore balance” between production costs and end prices by the end of 2025.
Subsidizing fueling is against the state’s interest and goals, stressed Minister of Finance, Mohamed Maait.
Maait noted that reducing these subsidies will enable the state to distributed the funds towards improving health, education and social protection.
Egypt has created a strategy with clear targets to increase the country’s foreign reserves, boost its exports and reduce imports to fortify the economy against any impact from external economic shocks, the PM stressed during his speech.
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