Cairo – Mubasher: The Egyptian government has to encourage the private sector to boost business in the local market and reinforce the economic growth, head of the International Monetary Fund’s (IMF) mission for Egypt said Subir Lall said in a call broadcast to MBC.
Upon the economic reform programme, the North African nation has trimmed the budget deficit which is notably reflected in recent declining inflation rates, he added.
IMF official reiterated that fuel subsidies adversely affect prices in the market and weigh on investments in the Arab world's most populous country.
“The Central Bank of Egypt (CBE) projected Egypt’s inflation to reduce to 13% by the end of 2018, which is likely to be achieved,” he continued.
Fuel subsidies surged to EGP 150 billion by the end of this year as Brent Crude oil prices stood at $70 per barrel, a government source recently stated.
The source expected subsidy bill of butane gas cylinders to exceed EGP 30 billion this year because of Brent Crude oil prices.
The cost of fuel products in Egypt’s budget jumped by 65% to EGP 23.5 billion ($1.3 billion) in the first quarter of 2017/2018.
