The flotation of the Egyptian pound since December under the new Extended Fund Facility programme with the IMF has benefited the industry sector as it raised the competitiveness of Egyptian products in the global market, Prime Minister Mostafa Madbouly stated on Wednesday.
Madbouly’s statements came during a press conference held following a meeting with representatives of private companies.
He also noted that Egypt has not fallen behind in paying its financial dues to the international financial institutions.
Madbouly further noted that the government is currently developing a plan to navigate the US dollar shortage the market is suffering from.
Meanwhile, he asserted Egypt’s commitment to adopting a flexible exchange rate for the sake of Egyptian economic growth.
The prime minister said that the recent decision to increase the tax exemption limit targets the private sector which includes 76 percent of the workforce in the local market.
In this respect, Madbouly asserted that the private sector is the key engine of Egypt’s economy.
He mentioned that the listing of 32 state-owned companies in the Egyptian stock market (EGX) will extend to the first quarter of FY2023/2024 and that an international advisor will be assigned to manage the subscription process.
For their part, the company representatives praised the policies adopted by the government to address the challenges facing investment in Egypt in a way that increases the private sector’s share in the economy in compliance with the State Ownership Policy Document.
Since December, the Central Bank of Egypt (CBE), under a loan deal with the IMF, has depreciated the Egyptian Pound against the US dollar by over 100 percent.
The US dollar is traded for over EGP 30.60 compared to EGP 15 before the outbreak of the war in Ukraine.