President El-Sisi during a meeting with Prime Minister Mostafa Madbouly, Governor of the Central Bank of Egypt (CBE) Hassan Abdallah, and Finance Minister Ahmed Kouchouk on Tuesday. Photo courtesy of the Egyptian Presidency
During the meeting, President El-Sisi underscored the importance of maintaining and enhancing the alignment between monetary and fiscal policies, ensuring both are consistent with Egypt’s long-term economic vision.
He also stressed the need to secure the financial resources necessary to support development initiatives and achieve a sustainable reduction in budget and external debt.
Moreover, he was briefed on the country’s latest macroeconomic indicators and the structural and economic reform measures currently implemented by the government.
The statement added that these reforms are part of the sectoral programmes aimed at improving financial and economic indicators while continuing to expand targeted social protection for the most vulnerable groups.
The meeting also reviewed the status of Egypt’s broader economic reform programme, including efforts to expand productive sectors, diversify the economy, and enhance its performance to yield more substantial returns for the state.
The government aims to address inflationary pressures, stimulate private sector participation, and attract domestic and foreign investment.
Foreign reserves, IMF debt
El-Sisi's directives come amid this week's planned fifth review, set to be counducted by an International Monetary Fund (IMF) team in Cairo, of Egypt's $8 billion EFF loan deal.
In March, the IMF completed the fourth review of the country’s economic reform programme under the EFF, granting Egypt access to around $1.3 billion.
These financial packages are critical in helping Egypt address its immediate economic challenges and long-term sustainability goals.
According to the CBE figures, the country's net international reserves (NIRs) increased to $47.7 billion in March 2025, up from $47.1 billion by the close of December 2024.
The IMF’s approval of the $1.3 billion loan is part of a $2.5 billion financing package approved for Egypt. This increases the country’s total purchases under the EFF to about $3.2 billion out of a total of $8 billion.
In December 2024, the IMF first laid out the staff-level agreement with Egypt, clearing the path for this $1.3 billion disbursement under the EFF’s fourth review.
This was part of an expansive 46-month loan deal signed in March 2024, which reshaped the country’s economic trajectory.
Egypt’s external debt rose by 1.5 percent during the first quarter (Q1) of the current fiscal year (FY) 2024/2025 (July-September 2024), compared to Q4 of FY2023/2024.
According to the CBE, this marks the first rise since Q2 of the previous fiscal year.
By the end of Q1 of FY2024/2025, the external debt increased by $2.32 billion to approximately $155.2 billion, compared to about $152.88 billion in Q4 of FY2023/2024.
Moreover, Egypt’s annual headline inflation rate accelerated in March to 13.1 percent, up from 12.5 percent in February 2025, the Central Agency for Public Mobilization and Statistics (CAPMAS) said in April.
This marked the first annual headline inflation rate rise in six months.
CAPMAS also indicated an acceleration in the monthly inflation rate in March by 1.5 percent compared to February, with the consumer price index reaching 250.6 points.
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