CAIRO, March 27 (MENA) - Prime Minister Mostafa Madbouli emphasized Thursday the necessity of continuing all efforts to achieve the state's objectives in advancing economic reform across various sectors.

Madbouli was chairing a meeting of the economic ministerial group, where several important economic files were discussed.

The meeting was attended by Governor of the Central Bank of Egypt Hassan Abdalla, Ministers of Planning, Economic Development and International Cooperation Rania Al-Mashat, Finance Minister Ahmed Kouchouk, Minister of Supply and Internal Trade Sherif Farouk, and Minister of Investment and Foreign Trade Hassan El-Khatib, among other senior officials.

The premier highlighted the ongoing coordination between the government and the CBE in various files, which contributes to overcoming different challenges and achieving high growth rates in key economic indicators, ultimately benefiting citizens in their daily lives.

The meeting reviewed the latest updates on the implementation of the economic reform program being carried out in cooperation with the International Monetary Fund (IMF), including discussions on the post-fourth review phase and upcoming reforms for the fifth review.

The participants affirmed that the government will continue implementing policies aimed at maintaining a flexible exchange rate and increasing private sector participation in economic activities.
The meeting also discussed several structural reforms and short-term measures that the government is working on, covering multiple sectors, including that of energy.

Additionally, efforts are being made to increase spending on the "Takaful and Karama" social protection program.

Several indicators were proposed during the meeting to gauge progress in implementing various policies and measures, including the development of an index to assess the share of private investment in total investments, which would help in monitoring the implementation of the state's ownership policy document.

Another proposed index would track the divestment of state-owned entities, developed in collaboration with the Cabinet’s Information and Decision Support Center.

The meeting reviewed the latest developments in the government’s initial public offering (IPO) program. It was confirmed that work is ongoing to offer the companies recently announced, either through stock market listings or to strategic investors.

The meeting also addressed efforts to reduce public debt, with a plan to convert part of the current debt into investments, which would help lower the overall debt ratio.

The meeting highlighted the significant decline in inflation, with monthly inflation rates approaching pre-2022 levels. This decline was attributed to several factors, including the impact of the monetary policies implemented by the Central Bank of Egypt since March 2022. It was noted that the drop in inflation was primarily driven by the decrease and stabilization of food prices.

Discussions also covered ongoing negotiations with the European Commission regarding the second phase of the "Macro-Financial Assistance and Budget Support" mechanism and its timeline. Additionally, proposed structural reforms from Egyptian authorities were reviewed.

The meeting also examined ongoing grain silo projects, reaffirming that these projects aim to increase storage capacity and are being implemented in various governorates in collaboration with several international partners.

A presentation was given on the "Business Readiness Report," which is published annually by the World Bank Group. The presentation provided an overview of the report, its significance, and Egypt’s readiness to join it.

The report aims to assess the investment climate and ease of doing business throughout the lifecycle of a company, from its inception to closure. It was described as a continuation of the "Ease of Doing Business" report, which was discontinued in 2021. Key differences between the two reports were also explained.

The meeting emphasized the strategic importance of the report as a benchmark for reforms. It serves as a guide for governments to adopt necessary reform policies in legislation, procedures, and digital transformation to create a competitive and attractive investment environment, based on best global practices.

Regarding Egypt’s readiness to join the report, attendees discussed a preparatory action plan for Egypt’s inclusion in the 2026 report, outlining key steps, the roles of the National Committee for the Business Readiness Report, and the responsibilities of relevant agencies in Egypt.

The proposed timeline and action plan were presented, along with the key factors influencing country rankings in the report and the institutions responsible for each topic. (MENA)

M S H/R E E