The International Monetary Fund (IMF) has disbursed $1.2 billion to support Egypt’s economic reform programme in addition to $1.3 billion request under the Resilience and Sustainability Facility with access to additional funding.
This new development was revealed in a statement by IMF This new development was revealed in a statement by the IMF, following the completion of its fourth review of Egypt’s reform programme.
However, the support is aimed at helping Egypt stabilize its economy, tackle inflation, address debt vulnerabilities, and implement policies that promote sustainable growth and protect vulnerable populations.
It should be recalled that Egyptians have been grappling with soaring inflation with major effect on the surge in fuel price. It was noted that in October 2024, Egypt recorded between a 10 percent and 17 percent increase in the petrol pump price, which horrendously affected the cost of both goods and services within the country.
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Similarly, the cost of a liter of diesel experienced a surge from 11.5 pounds ($0.23) to 13.5 pounds ($0.25), while the price of 92-octane gasoline rose to 15.25 pounds ($0.31) from 13.75 pounds ($0.28), having a gripping effect on the cost of transportation.
Furthermore, Egyptian pound volatility against foreign currencies was due to the soaring inflation.
Meanwhile, to level up with the hike in commodities, fuel, and currency volatility, Finance Minister Ahmed Kouchouk announced that the monthly minimum wage for public sector workers will increase to EGP 7,000 ($138) starting in July, up from EGP 6,000 ($118.58).
He added that the once aw saw in minimum wage will match that of the private sector workers whose monthly minimum wage increase took effect on March 1. The price hikes have been deemed necessary to meet conditions set by the IMF for further assistance to the country.
