PM says no new IMF program needed as current deal nears completion

CAIRO - 4 June 2026:  Prime Minister Mostafa Madbouly said Egypt does not currently need a new program with the International Monetary Fund, as talks with the IMF mission are moving smoothly and the existing program is set to end in December.

Speaking at a press conference following the Cabinet meeting, Madbouly said the new fiscal year will include a broad package of tax and real estate incentives aimed at encouraging local and foreign investment. He added that the measures are expected to support economic activity and improve Egypt’s investment climate.

The Prime Minister said Egypt has maintained a growth rate of 5.3 percent despite continued regional challenges, noting that international institutions have praised the resilience of the Egyptian economy.

He also pointed out that yields on Egyptian bonds have remained largely stable despite regional conflicts, which he said reflects the strength of the country’s economic fundamentals.

On public spending, Madbouly said healthcare allocations will increase by 30 percent in the new fiscal year, while education spending will rise by 20 percent.

He added that the industrial sector will receive major support, with around LE 90 billion allocated to stimulate industrial growth and production.

Regarding the state ownership policy, Madbouly said several state-owned companies are expected to be listed on the Egyptian Exchange before the end of September. He also noted that decisions related to economic authorities will start being issued this month.

Madbouly said Egypt is working to become a producer of pharmaceutical raw materials, while also expanding investments in renewable energy projects.

He stressed that the government is working to secure uninterrupted electricity supply throughout the summer.

The Prime Minister also announced that Egypt will soon unveil the first logistics distribution center in the Suez Canal Economic Zone, as part of efforts to strengthen the country’s position as a regional trade and logistics hub.

On subsidy reform, Madbouly said the government is moving gradually from in-kind subsidies to a cash-based support system, with assistance directed to the most vulnerable groups through clear eligibility categories.

He also noted that remittances from Egyptians abroad continue to rise, reflecting confidence in the stability and resilience of the Egyptian economy.