The report will be submitted to the parliament session scheduled for Thursday for discussion and approval.
Egypt’s new government, sworn in by President Abdel-Fattah El-Sisi on 3 July, is expected to gain a vote of confidence from MPs when the House of Representatives reconvenes on Thursday.
The cabinet made an inclusive overhaul, bringing 20 new faces and merging some ministerial portfolios.
Creating a competitive, investment-attractive economy
The committee urged the government to reconsider its budget deficit target set at 6.6 percent in FY2026/2027 and place it in a safe zone between three and five percent to attain a fiscal balance, economic stability, and unsustainable government debt accumulation.
It also called on the government to adopt more strict financial policies to keep the overall debt on a sustainable downward path.
The committee praised the Tax Policies Strategy that outlines Egypt’s tax policies for the coming six months. The Ministry of Finance has designed this policy, which is now being discussed by the National Dialogue and is expected to be offered for a community and expert dialogue soon.
In addition, the committee recommended for this policy to include a reconsideration of the tax system in a way that mitigates the tax burdens on both citizens and businesspersons and contributes to maximizing its revenues to represent 15 percent of the country’s GDP, up from an average of 12 percent over the coming five years.
It also called for legislation stability to attract foreign investments, achieve economic stability, and raise confidence in the Egyptian economy.
Furthermore, the committee urged the government to maximize the non-tax revenues generated from the excesses of the state-owned economic bodies through implementing inclusive and deep structural reforms.
It also called for exploring sustainable solutions to bridge the gap related to foreign exchange liquidity, especially with the international financial obligations elevating on Egypt over the short term.
Meanwhile, the committee urged the Ministry of Planning, Economic Development, and International Cooperation to design a clear vision for managing the loans and finances Egypt secures from the lending institutions and governments, the purpose behind getting these loans, and the mechanisms of spending and repaying them.
It also called for announcing the mechanisms used for negotiating loans.
Economic, investment affairs
The committee called on the government to accelerate the implementation of decisions taken by the Supreme Council of Investment, urging the full-scale activation of all investment-related incentives provisioned in the investment law besides adopting out-of-the-box ideas to promote investment in Egypt.
It also asserted the necessity of establishing an online platform for the General Authority for Investment and Free Zones (GAFI) to be powered by cashless payment solutions and to extend all services the investors need.
The committee recommended increasing the financial and technical support extended to the commercial trade sector, the country’s window to external markets, as a key player in achieving Egypt's economic and commercial development.
It also urged the Ministry of Public Business Sector to classify its assets into three categories: revenues-generating companies, losing companies expected to shift into revenues-generating ones in the future, and losing companies not expected to generate revenues, saying such classification is key for the restructuring plan the ministry adopts for its assets.
Additionally, it called the ministry to create a database that facilitates tapping the untapped assets.
The committee also urged the Industrial Development Authority, under the Ministry of Transport and Industry, to provide full-serviced land plots for industrial purposes for investors without imposing fees that could hurdle the industrial investment flow.
Moreover, it also called for limiting the imports of non-strategic and luxury goods that could be locally manufactured to protect the national industry and expanding in the small- and medium-sized enterprises (SMEs) to raise productivity and employment rates.
How the committee sees portfolios' restructuring
According to the report, the committee noted that this action will contribute to achieving the government’s programme objectives, improving the efficiency of its performance, providing the required financing resources, and enhancing transparency and accountability.
It also called for a supportive legislative environment that helps the government achieve its programme objectives.
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