The Prime Minister: Egypt estimates the cost of the direct impact of the Ukraine war on its budget at 130 billion pounds annually

Egyptian Prime Minister Mostafa Madbouly said on Sunday that Egypt estimates the direct impact of the Russian-Ukrainian war on its budget at 130 billion pounds ($7.1 billion) annually, in addition to 335 billion pounds ($18.3 billion) in indirect effects. Egypt, which is one of the largest importers of wheat in the world, relies heavily on wheat shipments from Ukraine and Russia. Before the crisis, tourism from the two countries constituted about 31 percent of the total arrivals, according to Madbouly. He said in a press conference that Egypt’s strategic reserve of wheat is sufficient for four months of consumption, at a time when the government is seeking to obtain alternative supplies from countries including India. But India banned wheat exports on Saturday, days after it said it was aiming for record shipments this year, as a sweltering heat wave curtailed production and soared domestic prices to a record high. The Minister of Supply Ali Al-Moselhi said during the conference on Sunday that the decision to ban wheat exports taken by India does not apply to some governments, including the Egyptian government. United Nations: The war in Ukraine threatens food security in Egypt The G7 criticizes India’s decision to ban wheat exports, and Egypt seeks to exempt it from the ban Egypt raises the prices of all kinds of domestic gasoline by 25 piasters With regard to the government’s goals in the coming period, the Egyptian Prime Minister said that the country aims to reduce the indebtedness to about 75 percent of GDP by the end of June-June 2026, compared to 86 percent currently, and to reduce the budget deficit to about five percent of GDP in the four years. Coming from 6.2 percent currently. He added that Egypt seeks to achieve a primary surplus of about two percent of GDP annually from the 1.5 percent it targets in the current fiscal year, and also aims to reduce the cost of borrowing and government debt service to six percent of GDP in 2025-2026. The country also aims to increase the participation of the private sector in the implemented investments from about 30 percent currently to 65 percent within three years. Madbouly said that the state seeks to enhance the role of the private sector in economic activity in the context of addressing the repercussions of the current global economic difficulties. He pointed out that the state aims to make available assets owned by it worth 40 billion dollars for partnership with the Egyptian or foreign private sector over a period of four years, and that it is scheduled to announce before the end of this month a document of state ownership policies.

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