Responding to questions from Ahram Online regarding the ongoing reviews and the latest macroeconomic developments, Kozack outlined the current timeline and progress following the Fund's recent technical mission to Cairo. This took place during a hybrid press briefing the IMF held on Thursday.
The seventh review under the programme was primarily scheduled for 15 June, but no related updates have been announced yet.
"What I can say is that discussions on the seventh review of the EFF and the second review under the RSF are progressing following the IMF mission that took place in May of 2026," Kozack stated. She noted that the institution maintains its timeline for the next critical phase, adding, "It is still our objective to hold board meetings this summer, and this would enable a disbursement of about $1.6 billion to Egypt”.
Domestic revenue mobilization and tax reforms
Addressing specific inquiries regarding Egypt's fiscal policies and tax restructuring, Kozack emphasized the significance of the government's widening of revenue streams to protect critical public investment sectors.
"We very much welcome the authorities' continued efforts to strengthen domestic revenue mobilization," Kozack told Ahram Online. "This is important to create fiscal space for priority social and development spending, so it's important to raise revenue, so Egypt can meet its development, social, and development needs with the appropriate government spending”.
She further highlighted that the structural design of the country's upcoming fiscal framework relies heavily on institutional equity. "Broadening the tax base, improving the efficiency, fairness, and transparency of the tax system are important elements of Egypt's fiscal reform agenda”.
Divestment strategy and private sector footprint
Ahram Online also asked Kozack about the state's asset-monetization pipeline and changes in public sector involvement. The Communications Chief reiterated that state exit strategies remain a key pillar under the current IMF program to unlock market efficiency.
"Similarly, on the divestment strategy, we're continuing to engage closely with the authorities on advancing the implementation of the state ownership policy, including through the asset divestment program," Kozack explained.
She concluded by underscoring the overarching objective of these structural benchmarks: "This remains, as we've discussed here before, very important for reducing the state's footprint in the economy and supporting private sector-led growth in Egypt. So, both of those areas that you mentioned are very important for Egypt”.
IMF warns Middle East escalation risks hitting global economy
On a global level, the tensions in the Middle East cast a shadow on the global economy, Kozack warned. She added that deepening conflict in the Middle East risks pushing the global economic outlook into an adverse scenario characterized by slower growth and heightened inflation pressure.
Responding to questions regarding the global macroeconomic fallout from the US-Israeli war in the region, Kozack noted that the multilateral lender is closely tracking how volatile energy baselines and supply disruptions are spilling over into the broader global market.
"We are moving into the adverse scenario, but inflation expectations are still reasonably well anchored, and financial conditions remain accommodative," Kozack stated, adding that prolonged disruptions mean the global economic outlook faces intensified downside risks.
Downgraded growth projections and inflation shocks
Kozack highlighted that while its baseline reference scenario previously estimated global growth to drop to 3.1 percent, a protracted conflict is steering parameters toward a bleaker alternative. Under the IMF's adverse modeling, sustained high energy prices, tight financial conditions, and unstable inflation expectations could slow global growth further to 2.5 percent.
Kozack pointed out that the critical disruptions hitting vital waterways, where a fifth of the world's oil and gas supplies flow, have caused energy prices to swing globally. Additionally, the threat extends beyond energy markets, significantly impacting international supply chains and food security.
"We know from history that when fertilizer prices increase, it takes about six months or so for this to translate into increased food prices and, in some cases, reductions in yields and food security issues," Kozack explained, noting that a third of the world's fertilizer supply has encountered bottlenecks.
Kozack said that the updated report on the Fund’s World Economic Outlook will be released on 8 July.
Mitigating shocks and member support
In response to these compounding external shocks, Kozack confirmed that the IMF remains in active discussions with member states to deploy targeted policy advice and fiscal safety nets.
"Many countries are actually asking us for support in the policy area," Kozack told reporters, emphasizing that the Fund is evaluating the shifting financial needs of vulnerable economies to help maintain economic and financial stability amid the regional crisis.
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