some industries, such as chemicals, ceramics and glass, Minister of Trade and Industry Rashid Mohamed Rashid said. In his meeting with the Investors Union two days ago, Rashid said the government is continuing in the policy of liberating the prices of energy. The measures taken by the government to cut the prices of natural gas and mazut for the industrial sector are temporary till the end of the global crisis ramifications.
The government plan aims to take energy prices to the international levels during the coming ten years. In fact, the prices of diesel are subsidized by 300% of their real value.
2400 plants in chemicals, glass and ceramics will benefit from the Prime Minister's decision on cutting the prices of natural gas and electricity till the end of the year, Rashid added.
The reduction would cost the state LE24 million only per month. This proves that these plants' consumption of energy was low. If the LE24 million were divided on the number of these factories, we will find that the bill of a plant would not exceed LE 300,000.
Rashid denied the reports that the government postponed the law of real estate tax, saying: "We would not go back. This tax does not mean collecting money, but it means the continuation of the economic reform." The government intends to reduce - from now on - rice exports, which reached 1.5 million tons a year. And it aims to export 400,000 tons only per year.
The increase in exports and cultivation of rice contradicts with the State's water policy, given the decline in the per capita share of water, which would decline by 50% by 2050.
Rashid added that the world financial crisis will affect all sectors. Therefore, Egypt should increase the growth rate through improving three elements: investments, exports and the local market. There is a decline in foreign investments. This decline would increase during the coming period. The world funding for the developing countries' projects from the global banking system is expected to decline from $900 billion to $150 billion only.
Goods exports decreased by 1%, but they may increase, Rashid said, pointing out that the Chinese exports fell by 17% for the first time in 7 years despite all measures taken by China in this regard.
Rashid stressed the importance of developing domestic consumption, as it accounts for 80% of the market. He called on banks to pump more funds in the market. A meeting will be held with chairmen of banks to promote the consumer finance sector. It is necessary to reduce prices to move the market and increase sales, Rashid said.
In response to a question on the LE15 billion set by the government to face the world crisis, Rashid said the government will give priority to the projects listed on its plan for 2010 and 2011. LE8 billion have been allocated for the infrastructure projects. LE2-3 billion of the sum has been already disbursed, of which LE400 million were directly allocated for municipalities.
The government's main goal is to encourage the private sector not to lay off its workers, some 16 million.
