Fuel, food subsidies rise in Egypt amid economic reforms

(MENAFN) Egypt’s Finance Minister Ahmed Kouchouk announced a significant increase in the country’s fuel and food subsidies for the fiscal year 2023-24. Fuel subsidies have risen by 31 percent year-on-year, reaching 165 billion pounds (approximately USD3.35 billion). Meanwhile, food subsidies have also increased by 10 percent to 133 billion pounds. These changes come as part of Egypt's broader economic adjustments following an USD8 billion loan agreement with the International Monetary Fund (IMF).

The government has implemented price hikes for both fuel and bread, reflecting the conditions set by the IMF to secure the loan. This move is part of Egypt’s strategy to address economic challenges while managing its financial commitments. During his first press conference since taking office in the new government led by Prime Minister Mostafa Madbouly, Kouchouk acknowledged the difficulties faced by the population and the economic system. He emphasized the government’s efforts to mitigate the impact of these economic reforms by prioritizing more socially sensitive public spending.

Kouchouk highlighted that the government is committed to bearing the significant burden of these economic reforms while attempting to cushion their effects on the public. The reorganization of spending priorities aims to balance the necessary fiscal adjustments with the need to protect vulnerable populations from the adverse impacts of the reforms. 

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