In light of the current economic developments, Egypt has submitted a request to the International Monetary Fund (IMF) to start consultations between the two parties regarding a new program aimed at supporting the Egyptian government in its economic reform plans.
The program may include additional funding for Egypt, official spokesperson for the Cabinet, Nader Saad announced, on Wednesday, in a statement.
The global economy, especially emerging economies, is currently exposed to simultaneous external shocks, represented by an unprecedented rise in the prices of goods and services, and the high cost of financing in light of the fact that many global central banks have raised interest rates to curb rising inflation, the cabinet said.
The Russian-Ukrainian crisis has had significant negative economic repercussions which contributed to the further rises in the prices of energy, food commodities and minerals, as well as increased uncertainty and panic by investors, which led to the decline and exit of investments from many emerging countries.
Egypt’s priorities during the current stage are to quickly apply various policies and to take measures that ensure the stability of the country’s economic and financial conditions and to work on the providing basic commodities for citizens in addition to announcing, as well as implementing, an integrated financial package of measures and procedures aimed at providing sufficient support to economic sectors.
The groups most affected by simultaneous external shocks are also looked at, he stated.
Saad stressed that all state agencies will work to provide production requirements and to support the industrial, agricultural and export activities sectors.
“In parallel with this, the Egyptian government aims, during this stage, to continue efforts to implement the necessary economic and structural reforms to ensure the preservation of the path of strong, balanced and sustainable economic growth,” Saad added.
To achieve this, the Egyptian government continues to cooperate with all international partners and institutions, including the International Monetary Fund, with which the Egyptian authorities have been in regular contact and consultation since the successful completion of the previous economic reform program, he said.