File Photo: Egypt s Prime Minister Mostafa Madbouly.
During a Wednesday press conference following the weekly cabinet meeting, Prime Minister Madbouly unveiled new tax relief packages and investment incentives.
He emphasized that Egypt is currently navigating an exceptionally challenging period, unlike anything experienced in recent decades, even at times of war.
Madbouly highlighted the fluidity of the situation, noting that conditions change daily, creating significant uncertainty about the future. This volatility, he explained, compels the government to adapt its strategies and scenarios.
He pointed to the recent 10 percent surge in oil prices, which exceeded $80 per barrel in just one week, further straining the state’s resources.
Madbouly warned that regional tensions could push prices to $100 per barrel if oil projects were targeted. He also addressed the impact of the ongoing war on energy supplies, shipment consistency, and transportation costs, though no extraordinary measures have been implemented so far.
However, Madbouly cautioned that if a wider regional conflict occurs Egypt may need to transition to a "war economy." Despite the difficulties, the prime minister assured the public that the government remains committed to ensuring the availability of essential goods. He confirmed that directives have been issued to reduce state expenditures in anticipation of possible crises and that ministers have been tasked with mitigating the effects on supply chains.
Madbouly stressed the government's priority to secure vital resources, such as wheat, fuel, and electricity, for extended periods. He reassured citizens that Egypt holds enough wheat reserves to last five and a half months, with new shipments expected soon.
Regardless of regional developments, Egypt will continue to meet its needs, he added.
Madbouly announced that the signing of fifth-generation (5G) licenses will bring in $675 million in investments in the coming days.
Regarding rumours of the IMF postponing its fourth review, the prime minister clarified that there has been no delay.
A decision was made in coordination with the IMF that the review will be carried out after the institution’s annual meetings, set to begin on 22 October in Washington.
Short link: