Egypt’s Economic Crisis Forces Government To Pause All New Projects

Egypt is facing a serious economic crisis. To deal with it, the government has stopped starting new projects and is focusing on finishing the ones already in progress. This crisis has hit people hard, especially in recent months. 

They’re struggling with a shortage of dollars and rising prices for everyday things. Many have even resorted to getting dollars through unofficial channels like the black market. People now realize this crisis won’t go away soon; daily conversations about the economic crisis has spread among Egyptians, and they have come to realize that this challenge is not short-lived. It is expected to persist and cast a shadow over the country for the next five years. 

Moreover, journalists and television presenters are addressing the public with the stark reality that Egypt is on the brink of economic collapse.

In response, the government is taking strong steps to tackle the crisis:

Egypt’s Council of Ministers Takes Steps to Rationalize Investment Spending

The Egyptian Council of Ministers has taken a significant step to address the economic challenges facing the country. In response to the current economic difficulties, the council has made a firm decision to avoid contracting any external financing or launching new projects that require loans or additional foreign investments, even if they include local resources.

This decision highlights the government’s commitment to addressing the economic issues head-on and ensuring fiscal responsibility. By refraining from external financing and focusing on existing projects, the aim is to prioritize financial stability and streamline the allocation of resources

It will be carried out by entities included in the state’s general budget and public economic bodies, taking into account the current economic crisis. 

Project Postponements: Projects newly included in the plan during the previous year or the current year will be postponed, with no contracts to be concluded for these projects, whether through direct order or public tenders, until June 30, 2024.

Priority on Ongoing Projects: Priority will be given to completing projects that are already 70% or more complete and are expected to be implemented during the fiscal year 2023/2024. The focus is on necessary and urgent investment needs, aligning with directives to rationalize spending, reduce external debt, and support local products and national industries.

This decision demonstrates the Egyptian government’s commitment to addressing economic challenges and prioritizing prudent financial management and fiscal responsibility.

Next: Central Bank Confirms No New Instructions On Cash Withdrawals