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IMF Highlights Egypt’s Economic Recovery as It Approves Largest Tranche of Its $8B Program
Wednesday، 12 March 2025 - 11:52 PM
The International Monetary Fund (IMF) recently commended Egypt's efforts to rebuild market confidence and stabilize the economy, citing a recovery in economic activity and progress in restoring foreign exchange reserves to adequate levels.
The IMF shared their expectations for the Egyptian economy in its release on the recently completed fourth review of Egypt’s $8 billion economic program, which cleared the way for the disbursement of $1.2 billion the largest tranche of the program to date.
This follows a statement from the IMF's Executive Board, which acknowledged Egypt’s progress in stabilizing its economy despite ongoing external challenges.
However, it also highlighted the ongoing fragility of the economic landscape, influenced by regional conflicts and trade disruptions in the Red Sea. The Board also noted Egypt's high debt and gross financing needs, which present significant fiscal challenges in the medium term.
In addition to the review, the IMF Executive Board approved Egypt’s request for an arrangement under the Resilience and Sustainability Facility (RSF), granting access to about $1.3 billion (SDR 1 billion). The Board also concluded the 2025 Article IV consultation with Egypt.
Egypt's economic growth slowed to 2.4 percent in FY2023/2024, down from 3.8 percent in the previous year, but rebounded to approximately 3.5 percent in the first quarter of the current fiscal year (FY2024/2025).
Inflation has been trending downward since September 2023, providing a glimmer of optimism. However, the country’s current account deficit widened to 5.4 percent of GDP during the same period, even as the primary fiscal balance improved by 1 percentage point to 2.5 percent of GDP, due to strict expenditure controls.
The IMF's assessment showed that Egypt’s primary balance surplus (excluding divestment proceeds) is expected to reach 4 percent of GDP in FY2025/2026, with a further increase to 5 percent of GDP in FY2026/2027.
Fiscal consolidation in the first half of FY2024/2025 has been weaker than expected, despite strong growth in tax revenues. The Egyptian authorities are focused on controlling spending in the second half of the fiscal year to meet their end-of-year fiscal target for FY2024/2025.
At the conclusion of the Board's review, IMF Deputy Managing Director and Chair, Mr. Nigel Clarke, made the following statement:
“Since March 2024, the authorities have made considerable progress in stabilizing the economy and rebuilding market confidence despite a challenging external environment marked by persistent and successive external shocks, including regional conflicts and trade disruptions in the Red Sea.”
Clarke noted that while GDP growth shows signs of recovery, inflation is gradually moderating, and foreign exchange reserves are at adequate levels, significant risks remain.
He stressed that fiscal consolidation efforts are on track, with the government achieving a primary fiscal surplus of 2.5 percent of GDP in FY2023/2024, alongside a declining debt-to-GDP ratio.
However, challenges persist, especially high debt levels and the mixed progress on structural reforms that have limited growth potential and constrained private sector development.To ensure fiscal sustainability, Clarke emphasized the importance of domestic revenue mobilization, streamlining tax incentives, enhancing compliance, and implementing a comprehensive debt management strategy.
He also called for strengthening fiscal oversight, particularly regarding off-budget entities, and accelerating divestment efforts.
Looking ahead, the IMF urged Egypt to transition to a new economic model by reducing the state’s footprint, promoting a level playing field, allowing energy prices to reach cost recovery levels, and addressing governance and transparency issues.
A flexible exchange rate, supported by a robust inflation-targeting regime with an independent central bank and sound fiscal policies, is considered essential for economic resilience.
Despite these efforts, Clarke cautioned that risks remain significant and skewed to the downside, with the economy vulnerable to external shocks and domestic policy challenges.
In particular, regional conflicts, trade disruptions, and the potential for social costs associated with reforms in energy prices, subsidies, and tax policies may strain Egypt's fiscal revenues and foreign direct investment.
In response to the IMF’s assessment, Executive Directors emphasized the need for stronger implementation and vigilant monitoring of the program's commitments. They stressed the importance of strong ownership of structural reforms to foster inclusive growth, reduce vulnerabilities, and meet Egypt’s development and social goals.
Egypt Today
// Egyptian diplomacy steps up efforts to rally int'l support for Gaza reconstruction plan
2025-03-12 18:24:52 GMT
Egypt/Gaza reconstruction/Politics and DiplomacyLarger -Smaller -Reset
CAIRO, March 12 (MENA) - The Egyptian diplomacy is intensifying efforts to garner international support for an early recovery and reconstruction plan for Gaza with preparations in full swing for organizing a global Gaza reconstruction conference in cooperation with the Palestinian government and the United Nations.
The conference will be hosted by Egypt and is expected to be held by the end of April but no official date was yet confirmed.
Donors and financing foundations are to take part in the event.
Diplomatic sources said the 100-page Gaza reconstruction plan is a detailed and phased plan that was compiled by Egyptian experts.
Copies of the plan were handed out to Arab leaders during the extraordinary Arab summit hosted by Egypt on March 4 and to several foreign embassies in Cairo.
According to the sources, the plan has received strong support and has been appreciated for its professional and detailed approach.
The sources termed as catastrophic the conditions in the Gaza Strip with the displacement of 2.2 million Palestinians, the death and injury of 150,000 others, the destruction of 50% of hospitals, and the partial or complete devastation of 88% of schools.
Additionally, 68% of cultivated land is no longer arable, and approximately 70% of roads are unusable.
The Egyptian plan includes three phases. The first stage, the early recovery stage, is expected to cost 3 billion dollars over six months. It includes removing rubble, estimated at 50 million tons, and removing unexploded ordnance.
During this period, tens of thousands of prefabricated homes, including caravans and tents, will be provided to shelter 1.2 million Palestinians, while 60,000 damaged homes will be repaired.
The second phase, which will span two years, aims to build 200,000 permanent housing units, continue ordnance clearance, and initiate infrastructure projects.
The third stage also includes the construction of 200,000 houses. It includes as well the establishment of vital infrastructure, such as a commercial seaport, a fishing port, an airport, and the reconstruction of roads, hospitals, and schools, and the reclamation of 20,000 feddans of agricultural land.
The second and third stages, spanning five years, will cost 53 billion dollars to be financed by donors and funding institutions.
The reconstruction process will begin along the Salah al-Din corridor and extend to five key areas in Gaza: Rafah, Khan Younis, Deir al-Balah, Gaza City, and northern Gaza.
The plan, initially an Egyptian initiative, was adopted as a unified Arab plan during the Cairo-hosted extraordinary Arab summit and subsequently endorsed by the Organization of Islamic Cooperation (OIC) in Jeddah.
Several Western countries, the European Union’s High Representative for Foreign Affairs and Security Policy, the European Council president, and the UN secretary-general have also expressed their support of the plan.
The sources termed as constructive and positive the way Egypt communicated with the US over the past period, citing Foreign Minister Badr Abdelatty's contact with US Middle East envoy Steve Weidtkopf, who reviewed the plan, with initial responses signaling openness to further discussions.
As part of the Arab League’s commitment, an Arab-Islamic ministerial committee will soon dispatch delegations to major world capitals—including Washington, D.C.—to present the plan and mobilize support, the sources added. (MENA)
PM: Unified card for services & digital transactions aims to simplify, facilitate procedures for Egyptians
2025-03-12 18:36:56 GMT
Egypt/Prime Minister/EconomyLarger -Smaller -Reset
CAIRO, March 12 (MENA) – Prime Minister Mostafa Madbouly said the goal of the unified card for services and digital transactions is to simplify and facilitate procedures for Egyptian citizens.
Addressing a press conference after the Cabinet’s weekly meeting on Wednesday, Madbouly noted that the unified card encompasses subsidy and Takaful and Karama services, salary and pension disbursements, the universal health insurance system, and services for people with disabilities.
He added that ration cards are being filtered carefully via coordination among all agencies, pointing out that the Administrative Control Authority has a relevant database for this purpose.
Meanwhile, Madbouly said there is no shortage of any commodity at the domestic market. (MENA)
IMF approval of Egypt’s 4th review signals confidence in economic reforms - PM
2025-03-12 17:21:56 GMT
Egypt/Cabinet/EconomyLarger -Smaller -Reset
CAIRO, March 12 (MENA) – The International Monetary Fund’s (IMF) approval of Egypt’s fourth review reflects confidence in the country’s economic reforms and its commitment to meeting agreed-upon targets under the IMF program, Prime Minister Mostafa Madbouli said Wednesday.
Speaking at a press conference following the weekly Cabinet meeting, Madbouli added that the IMF Executive Board had approved Egypt’s fourth review and the disbursement of a new $1.2 billion tranche. Additionally, the board authorized $1.3 billion in financing from the Resilience and Sustainability Facility (RSF) to support Egypt’s green transition initiatives. These funds will be disbursed in installments over the coming period, with the RSF loan offering more favorable terms compared to other financing options.
The prime minister explained that the delay in completing the fourth review was due to Egypt’s request under President Abdel Fattah El Sisi’s directives to revise certain targets and adjust the program’s implementation timeline. The IMF accepted these modifications, making the review process more comprehensive, according to him.
On a separate note, Madbouli highlighted President Sisi’s recent meeting with the minister of housing, during which he directed the launch of a major new housing program. Following the Eid holiday, the government will announce the offering of 400,000 residential units, the largest such initiative to date.
These units will be available to a range of income groups, including young people, low-income, and middle-income citizens, Madbouli said. Some will be ready for immediate delivery, while others will be completed within a maximum of two years from the announcement date, he added. (MENA)
Over 2.7 M surgeries completed in Egypt’s initiative to end waiting lists
The Ministry of Health and Population has confirmed that the services provided by the President’s Initiative to End Waiting Lists are entirely free of charge, with patients bearing no financial burden. The initiative aims to alleviate the suffering of those unable to afford treatment, offering urgent and critical surgeries of the highest quality in the fastest possible time.
Dr. Ahmed Mustafa, the Health Ministry’s Advisor for the Initiative to End Waiting Lists and Head of the Health Insurance Authority, highlighted the ministry’s commitment to improving hospital performance and delivering the best possible medical services to patients. This is achieved through continuous training for medical staff and equipping hospitals with the latest necessary surgical equipment, alongside ongoing development of the automated system used for the initiative to ease data tracking and extraction.
Dr. Ahmed Mustafa noted that since the initiative’s launch, it has activated a unified electronic system linking the entities issuing treatment decisions, whether through state-funded care or health insurance, based on each hospital's capacity. The system also allows for the transfer of cases between service-providing sectors.
Dr. Mustafa urged patients in need of surgical interventions covered by the initiative to register on the dedicated website for monitoring the cases of the End Waiting Lists Initiative: http://wlms.smcegy.com, and mentioned that inquiries and data could also be received via the hotline 15300.
He further stated that the initiative has completed 2,700,736 surgeries as of now, as part of efforts to clear waiting lists and prevent the accumulation of new ones for critical surgical interventions since its launch in July 2018.
Since the beginning of the initiative, the ministry has received 260,033 calls from waiting list patients through the dedicated hotline, with 220,452 cases monitored from July 2023 to February 2025.
Dr. Mustafa clarified that the initiative covers surgeries for heart conditions, orthopedics, ophthalmology, oncology, brain catheters, heart catheterization, neurology, kidney transplants, liver transplants, cochlear implants, and peripheral catheters. Patients are centrally assigned to hospitals within the initiative to ensure the fastest possible medical service.
Dr. Hossam Abdel Ghaffar, the official spokesperson for the Ministry of Health and Population, explained that the initiative, launched by President Abdel Fattah El-Sisi, aimed to resolve a chronic problem in the Egyptian healthcare system: the long wait times before surgeries. The initiative began in July 2018.
He noted that before July 2018, waiting times for treatments like heart diseases, orthopedics, ophthalmology, oncology, brain and heart catheterizations, neurology, kidney and liver transplants, and cochlear implants ranged from one year to 18 months. The President's initiative has been a major step in reducing unnecessary waiting times before surgeries.
Dr. Abdel Ghaffar further emphasized that today, the average waiting time is no more than two to three weeks, and all services provided are free of charge, funded through the state's general budget or donations from organizations such as civil society groups, the Banks Union, and the Tahya Misr Fund, which has made significant contributions to the funding of these interventions.
Egypt Today
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