Economic reformation program to increase domestic rate to 10% in 5 years
Minister of Planning and International Cooperation Ashraf al-Araby - YOUM7 (Archive)

CAIRO: International consulting firms alliance Strategy American Company, French Lazard Company, and the Egyptian government were able to put the main points for the economic reformation program that will be applied with the new fiscal year, Al-Mal reported Sunday.

The reformation program targets to increase GDP to ten percent within five years, Minister of Planning Ashraf al-Araby told Al-Mal Saturday and that it grew by 2.7 percent during the third quarter of the current fiscal year and will be two percent for the whole fiscal year.

The plan main points include restructuring the government’s subsidizing energy, administrative body of the state, and applying the minimum and maximum wage without any exceptions, Al-Mal added.

The government’s target for GDP in the new FY after amending the budget is expected to be 3.2 percent, Al-Mal reported.

Araby said the total budget deficit for this year amounts to $240 to 250 billion and that this will negatively affect the GDP, debt, Credit Rating. It will also cause an increase in the interest price, which is not good for the Egyptian economy that is already suffering, MENA added.

He said there are actual steps to apply the reformation in subsidizing energy including fuel and electricity. These are three steps that include smart cards for subsidized fuel, making a trial for the use of smart cards, and finally defining the factions that will be subsidized, Al-Mal reported.

International Monetary Fund expected Egypt’s economy to grow by 2.3 percent and 4.1 percent in 2014 and 2015, respectively, according to the World Economic Outlook released on April 9. Egypt’s economy grew by 2.1 percent in 2013.

IMF’s report issued in April also expected economic growth to reach 4 percent in 2019.

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