Egypt Daily News – Ibrahim Eissa, a prominent media figure, recently highlighted the rationale behind President Abdel Fattah El-Sisi’s call to reconsider the International Monetary Fund (IMF) program in Egypt.
Issa expressed that this initiative stems from a genuine recognition of the people’s difficult economic circumstances. He pointed out that the economic crisis predates Egypt’s engagement with the IMF, suggesting that the challenges faced are deeply rooted.
During his comments on the “Cairo Talk” program, aired on the “Al Qahera Wal Nas” channel, Eissa described Egypt’s reliance on the IMF as a necessary step due to the country’s economic ailments.
He acknowledged that while the IMF provided a “prescription,” it also comes with adverse side effects. Issa stressed that the real issues lie not solely with the IMF’s directives but with the economic conditions that prompted Egypt to seek external assistance in the first place.
Regarding the ongoing IMF program, he noted that significant progress has been made with the prescribed measures, leaving predominantly one key adjustment related to gasoline and diesel prices outstanding.
Other measures, such as electricity price adjustments, have already been implemented. Issa warned, however, about the pressure these economic reforms exert on the populace, emphasizing that many citizens are feeling suffocated and exhausted.
He raised critical questions about the government’s approach to the economy, questioning the necessity of state competition in the market, particularly against the private sector.
Issa cautioned that if the government fails to comply with IMF conditions, it risks halting loan payments, which could deter potential investors in the Egyptian market.
Issa also critiqued the government’s lack of preparedness for economic crises, insisting that prudent governance involves creating contingency plans rather than being surprised by regional tensions or economic implications.
He took issue with Prime Minister Mostafa Madbouly’s statements regarding subsidies, “You are convincing us and deluding us as if subsidies are what is stopping Egypt from progress, development, and joining the world’s top 7 economic countries. Are you going to create giant projects for us again and new cities? And how can you declare that the price of a barrel of oil has moved while you accounted for it at 83 dollars, while it is now 75 dollars?”
He expressed his concern over rising prices and the potential backlash from citizens who are already struggling with daily expenses. Eissa warned of rising frustration and the potential for political unrest, cautioning against individuals or groups that might seek to exploit the current crisis to incite chaos in the streets.
In summary, Ibrahim Issa’s statements underline the complexities of Egypt’s economic situation, the role of the IMF, and the pressing need for the government to navigate these challenges carefully while considering the welfare of its citizens.
