Egyptʼs financial landscape is shifting as President Abdel Fattah al-Sisi suggests a possible review of the countrys $8 billion International Monetary Fund (IMF) program. This consideration comes in light of the nations current regional hurdles
The IMF deal‚ inked about seven months ago requires Egypt to cut back on subsidies for essentials like fuel and electricity. It also mandates a free-floating currency – steps that have sparked public anger. In recent times‚ the country has seen fuel costs jump up to 17% (the third increase this year) while bread prices soared by 300% in June
Sisi pointed out that Egypt has lost roughly $6-7 billion in income over the past months‚ a trend that might persist for another year. He stated‚ “If this challenge will hurt public opinion that people cannot bear it we must re-evaluate our situation“
The Suez Canal‚ a key source of revenue for Egypt has seen a sharp decline in income. Attacks on Red Sea shipping by Yemens Houthis (who claim solidarity with Palestinians in Gaza) have diverted traffic away from the canal. As a result‚ revenue plummeted to $870 million in Q2 from $2.54 billion the previous year
Egyptian officials are currently in Washington for IMF and World Bank annual meetings. Theyʼre expected to discuss these issues with representatives from both institutions‚ potentially reshaping Egyptʼs economic future