Reforms
The assessment points to major institutional improvements, particularly in digitizing government services, modernizing the civil service, and advancing gender and youth inclusion in policymaking.
The report, reviewed by Prime Minister Mostafa Madbouly, details progress aligned with the State Ownership Policy Document, a key strategy to shift Egypt toward a private sector-led growth model.
The IMF noted that “economic activity is expected to pick up but remain modest” in FY2025/2026, reflecting the complex challenges Egypt continues to face.
The new taxation model is expected to roll out within the next few months as part of a national effort to simplify investment procedures and encourage private sector growth
Consumer financing accounted for 6.7 percent, non-equity securities issuances represented 6.1 percent, and real estate financing made up 2.8 percent.
The report highlights several crucial factors influencing Egypt's economic trajectory, with a particular focus on policy changes, inflation concerns, and the persistent challenges surrounding structural reforms
The FinMin also outlined that the Ministry of Finance is rolling out 20 new measures designed to improve the tax environment for businesses of all sizes, stressing that these measures are part of a realistic and solution-driven approach
Remittances from Egyptians abroad witnessed major leaps after reforms in March 2024, doubling in Sept. 2024 to record about $2.7 billion.
Kouchouk added that these aim to stimulate growth among small businesses, simplify tax processes, and resolve existing tax disputes
New data is expected to reveal the effects of economic reforms on household spending following two years of currency devaluation and rising prices.
Al Mashat presented the country’s recent economic and structural reforms, emphasizing the government's efforts to strengthen macroeconomic stability, enhance the business environment, and build a competitive, investment-friendly economy.
This decision comes in response to directives from President Abdel-Fattah El-Sisi earlier this week to reassess the agreement to alleviate the strain on citizens as Egypt grapples with economic hurdles, including inflation and high debt.
The news comes within days of President Abdel Fattah El Sisi urging the government to reassess its agreement with IMF, stating, “If this challenge forces me to place unbearable pressure on the public, we must review the situation with the IMF.”
Abdel Aal clarified that the suggested reforms are part of a strategic plan aimed at ensuring the sustainability of Egypt's tax system while adhering to international best practices that prioritize taxpayer satisfaction.
The policies will focus on further improving fiscal discipline in the state’s budget indicators, a crucial component for fostering economic growth and ensuring effective long-term planning.
El-Khatib emphasized that this new vision is designed to enhance confidence among both local and foreign investors.
During the completion of its 3rd review of Egypt’s $8 billion loan program, the International Monetary Fund (IMF) adjusted and softened certain conditions attached to the program, providing the country more time to implement key reforms.
These changes will come into effect at the onset of the new academic year 2024/2025, commencing on September 21
With the 3rd review completed, Egypt will receive $820 million in the coming days, meaning it will have obtained $1.64 billion from the $8 billion loan since the agreement’s approval in 2022
El-Khatib emphasized the importance of aligning efforts with global partners to expand productive and service sectors capable of generating financial returns
