Sisi Calls for Review of IMF Program Amid Difficult Circumstances

Sisi Calls for Review of IMF Program Amid Difficult Circumstances
It appears that the Egyptian government is seeking to find a delicate balance between adhering to IMF conditions and easing the burden on citizens, which may lead to adjustments in the course of econo
October 20, 2024, 10:07 pm

السيسي \ تعبيرية \ متداولة

Egyptian President Abdel Fattah el-Sisi made interesting statements about the current program with the International Monetary Fund (IMF), emphasizing the need to consider the difficult circumstances negatively affecting economies worldwide. Sisi stressed the importance of reviewing the agreement with the Fund if it would put citizens in an unbearable situation.

These statements come in the wake of the Egyptian Petroleum Ministry's decision to raise prices for a wide range of fuel products for the third time this year, by percentages ranging between 7 and 17%, which has sparked widespread controversy about its impact on Egyptians' daily lives.

In a related context, Sisi revealed that Egypt has lost about 7 billion dollars in Suez Canal revenues over 10 months, warning of the possibility of the crisis extending for an additional year. He also confirmed the country's need to provide one million jobs annually to face the influx of new graduates into the job market.

For his part, Prime Minister Mostafa Madbouly stated that the government takes into account low-income individuals in all procedures, confirming the continuation of support for this category. He indicated that future fuel increases would be less than previously planned, with any new increases postponed for 6 months.

In an analysis of the economic situation, Ali Metwally, an economic consultant, explained that reducing subsidies in Egypt is one of the IMF's conditions, and he expected the inflation rate to reach 25% by the end of 2024, with the possibility of it decreasing to 13% by the end of 2025.

It's worth noting that Egypt signed an agreement with the IMF in March 2024 to obtain a loan of 8 billion dollars, accompanied by economic measures including liberalizing the exchange rate of the Egyptian pound.

Amid these developments, Madbouly confirmed that his use of the term "war economy" does not mean Egypt entering a war, but rather refers to directing state resources to secure basic needs for citizens and defend the homeland in case of a direct threat.

These statements and measures reflect complex challenges facing the Egyptian government in balancing the requirements of economic reform with increasing social pressures, in light of volatile regional and global circumstances.

Levant-Agencies

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