Cairo – Mubasher: Businessman and former telecom operator magnate Naguib Sawiris has praised the Egyptian government’s decision to reduce subsidies, calling it “a bold step”.
Speaking at an interview in “Hona Al'asema” TV show, Sawiris described the move as a “bold” one, but also said it was significantly late.
On Thursday, 29 June, the Egyptian Cabinet had announced raising fuel prices and reducing subsidies on petroleum products.
Sawiris called on the government to explain to the Egyptian people the reasons behind this decision and how it will help the government increase its support for the underprivileged people in the society.
He said that such an explanation would lessen the possibility of a strong negative reaction to the fuel price hike.
In May, Egypt’s petroleum minister said that subsidies for petroleum products surged 90.2% year-on-year in the nine months ended March 2017, following the flotation of the Egyptian pound in November.
The flotation was among the requirements imposed by the International Monetary Fund (IMF) as part of a deal to provide Egypt with a $12 billion loan over a three-year period.
Loan requirements entail the gradual reduction of subsidies for petroleum products and electricity.
