Sisi directs gov’t to enhance Egyptians’ quality of life in FY2024/2025

Ahram Online , Tuesday 9 Jan 2024

President Abdel-Fattah El-Sisi has instructed the government to increase spending on improving Egyptians’ quality of life in the upcoming fiscal year 2024/2025, which starts on 1 July, Minister of Finance Mohamed Maait stated on Tuesday.

File Photo: General view shows a crowd and shops of one of the streets of Cairo, Egypt. AFP


Maait added that the government's focus is on mitigating inflationary pressures, achieving economic goals, and prioritizing the healthcare and education sectors, according to an official statement.

He highlighted their commitment to implementing the Decent Life initiative, the country's largest project to date, which aims to improve the lives of the 60 percent of Egyptians who live in the countryside.

Furthermore, Egypt seeks to enhance the business environment by streamlining procedures and creating a more favourable tax system for medium, small, and micro-enterprises, he indicated.

“These measures are intended to stimulate investment, bolster production and exports, and increase the participation of local businesses,” Maait added.

Emphasizing economic growth, Maait stated that the country aims to involve the private sector more extensively in the economy during FY2024/2025.

The government's objectives include maintaining economic stability, achieving an annual primary surplus of at least 2.5 percent of GDP, and reducing the deficit and debt rates.

Additionally, Egypt plans to expedite its Initial Public Offering (IPO) programme over the next two fiscal years to meet financing needs and attract greater investment.

The Egyptian government is intensifying efforts to complete offering stakes in 35 state-owned companies to strategic investors by the end of June 2024, as outlined in the State Ownership Policy Document.

In February 2023, a list of 32 companies was released, which was later expanded to include three additional companies this year including; Eastern Company, Al Ezz Dekhila, and Telecom Egypt.

By June 2024, the government is poised to attract $5 billion from its IPO programme.

External debt

With regards to external debt, the government aims to lower the debt-to-GDP ratio to below 85 percent by the end of June 2028, Maait highlighted.

In the medium term, Egypt intends to extend the duration of budget authorities' debt from 3 to 4 years, reducing the need for immediate financing, he concluded.

Last week, Prime Minister Mostafa Madbouly said that the Egyptian economy is set to fully recover from its current crisis in 2025, with plans to reduce inflation to below 10 percent.

Notably, the country is actively seeking additional funding to close a $17 billion financing gap by 2026, projected to be between $6 and $8 billion for FY2023/2024.

Furthermore, Egypt must procure more hard currency to fulfill its commitment to the International Monetary Fund (IMF), under its four-year $3 billion loan programme.

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