Egypt is set to end fuel subsidies by December 2025, according to Mohamed Maait, executive director for the Arab Group at the International Monetary Fund (IMF). Speaking to reporters on Monday, Maait confirmed that the Egyptian government remains fully committed to the scheduled phase-out as part of its broader economic reform agenda. He highlighted that Egypt's fuel pricing mechanism is aligned with global oil prices, which have recently benefited the country due to declining international crude costs. He also pointed to positive economic indicators, including a flexible exchange rate since March 2024 and falling inflation, have helped ease interest rates, creating a more stable financial outlook for Egypt. Amid ongoing external challenges, Egypt has requested adjustments to certain reform measures, particularly in light of reduced Suez Canal revenues affecting state finances. The IMF has responded with flexibility, agreeing to lower Egypt's primary surplus target for the current fiscal year from 4.5 per cent to 4 per cent to accommodate social support programmes for vulnerable groups, the IMF official added. Despite these adjustments, Maait said the IMF's executive board acknowledges Egypt's progress. citing key achievements such as, a decline in inflation, an increase in foreign reserves to $47.4 billion, a primary budget surplus, and a reduction in government debt. Upcoming IMF Review on Track The IMF has acknowledged Egypt's request to delay some economic reform measures and adjust budget surplus targets. Meanwhile, the programme remains on schedule, with the fifth IMF review set to begin in the coming months, Maait stated. As Egypt moves forward with its economic transformation, the gradual removal of fuel subsidies marks a significant shift in government policy, aimed at enhancing fiscal stability and promoting long-term economic growth. Attribution: Amwal Al Ghad Arabic
