President Abdel-Fattah El-Sisi and International Monetary Fund (IMF) Managing Director Kristalina Georgieva
Talks are expected to focus on Egypt’s macroeconomic stabilization efforts, progress on structural reforms, and steps taken since the last disbursement.
Under the first four EFF reviews, Egypt received approximately $3.2 billion of the total $8 billion. Completion of the two EFF reviews and the RSF review is expected to unlock nearly $2.5 billion more for the country.
The two EFF reviews are being conducted together, as the IMF stated that more time is needed to finalize key policy measures, especially those related to empowering the private sector and increasing its role in the economy.
The IMF visit comes as Egypt continues to implement its commitments under the EFF, including a tight monetary policy, exchange-rate flexibility, and stronger fiscal measures to address accumulated imbalances
The IMF noted that Egypt has advanced its monetary tightening. Since the programme’s approval in December 2022, the Central Bank of Egypt (CBE) has raised its policy rate and maintained a restrictive stance to reduce inflation and restore credibility.
Monetary and exchange-rate reforms under review
The discussions are expected to focus on Egypt’s adherence to a flexible exchange-rate regime, a central pillar of the EFF.
Over the past three years, Egypt has allowed the pound to adjust more freely to correct external imbalances and rebuild reserves. Since late 2022, the Egyptian pound has lost over 60 percent of its value against major currencies, mainly the US dollar.
The IMF team will also assess whether monetary policy remains tight enough to anchor inflation expectations and support disinflation. The CBE has committed to avoiding monetary financing, improving liquidity management, and strengthening policy transmission.
The CBE has begun easing monetary tightening cautiously, cutting the policy rate four times in 2025 to 6.25 percent, down from 19 percent (1,900 basis points) since 2022.
Fiscal performance and debt dynamics
Fiscal consolidation is another key area under review, including Egypt’s commitment to achieving a primary surplus and reducing public debt vulnerabilities. Measures include improving revenue collection, rationalizing expenditures, and prioritizing social protection.
Debt sustainability remains a central benchmark for the EFF reviews. The IMF is expected to evaluate progress in managing public debt, enhancing transparency, and addressing elevated financing needs.
Meanwhile, Egypt’s finance ministry reported in its Financial Monthly Report on Sunday that the budget faces pressures in FY2025/2026, which started on 1 July 2025, and in FY2024/2025, particularly regarding the budget deficit, interest payments, and debt levels.
State-owned enterprise reform and private sector
Structural reforms, including those linked to the State Ownership Policy, will also be reviewed. Egypt is committed under the EFF to accelerate governance reforms in state-owned enterprises (SOEs), enhance transparency, and expand private-sector participation.
Progress in the government's asset sale programme and steps toward a competitive framework will be discussed.
The review will address the slowdown in executing the divestment plan, including the initial public offering (IPO) programme covering more than 40 SOEs to be offered wholly or partially to private investors. Half of the proceeds are intended to reduce public debt under the EFF.
Egypt has issued three follow-up reports on the State Ownership Policy since late 2022, with the latest published in August 2025.
In September, the government introduced a State Ownership Policy Index to track progress in empowering the private sector and redefining the state’s economic role.
Two additional EFF reviews remain after the fifth and sixth reviews. The seventh review is scheduled for March 2026, and the eighth for November 2026 (delayed from September), following a government request to extend the programme. These two tranches are valued at over $2.5 billion.
Climate-linked commitments under RSF
For the first RSF review, the IMF will examine progress on climate-related commitments, including measures to enhance resilience, strengthen climate governance, and support the green transition.
The review emphasizes aligning public investment with climate objectives and integrating climate risks into fiscal planning.
A tranche of $2 million is expected to be disbursed upon completion of the RSF review to implement two programme measures.
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