Egypt Daily News – President Abdel Fattah el-Sisi has expressed concerns about the economic reform program currently implemented in Egypt as part of its agreement with the International Monetary Fund (IMF).
During a recent panel discussion at the Global Conference on Population, Health, and Human Development, he highlighted that the program was initiated in 2016 and was successful under stabilizing regional and international conditions.
However, President Sisi pointed out that the ongoing program faces severe challenges due to the current unfavorable global economic landscape, which could lead to a potential recession.
President Sisi noted that Egypt has incurred losses of approximately $6 to $7 billion over the past ten months, indicating that this trend may continue in the coming year. He stressed that if the economic measures cause unbearable pressure on the population, it may be necessary to reassess the situation with the IMF.
Recent developments include an increase in fuel prices, marking the third time this year that Egypt has raised these costs. Gasoline prices surged by up to 15%, with 80 octane gasoline now priced at 12.25 EGP (approximately $0.25) per liter, and diesel increasing to 11.50 EGP (about $0.24).
Prime Minister Mostafa Madbouly has indicated that prices will continue to rise gradually until December 2025, although he assured that there would be no new price increases for the next six months.
This situation arises amidst a broader strategy of fiscal reform that includes the expectation of a significant budget deficit, which was reported to be 505 billion Egyptian pounds (about $10.3 billion) for the previous fiscal year.
The government has also devalued the Egyptian pound and increased the prices of subsidized goods as part of efforts to control inflation and stabilize the economy. The IMF had previously disbursed a tranche of $820 million to Egypt after a third program review in June.
Overall, President Sisi’s remarks highlight the balancing act between implementing necessary economic reforms and ensuring the welfare of the Egyptian populace amid a challenging economic environment shaped by both domestic and international factors.
