Strategic transformations and unprecedented effective steps are being implemented by Egypt's ministry of finance during the current fiscal year. These efforts are led by the competent minister, Ahmed Kouchouk. They are based on scientifically and socially sound foundations. They rely on a conscious and enlightened mindset. The goal is to support investment expansion, entrepreneurship, productive activities, and exports. This is taking place amid difficult and unprecedented global and regional conditions, including geopolitical tensions, military and trade wars, inflation waves, supply chain disruptions, and more. Since Kouchouk took the constitutional oath as minister of finance in July last year, he has been establishing his own approach to managing one of the most challenging portfolios in Egypt. His approach is built on creativity and benefiting from the experiences of predecessors who managed Egyptian finance over the years. This is not surprising given his years of learning in various ministry departments and his extensive interaction with international institutions. Hence, he developed a unique and creative vision to manage the interests of all stakeholders, including taxpayers, investors, the state, and the informal economy with the aim to achieve a positive return for all. With this distinguished professional background, Kouchouk leads a highly efficient work agenda, focusing on striking a balance between fiscal discipline, economic stability, and driving growth within a framework of partnership with the business community. Significant Achievements In a short time, Kouchouk has achieved significant economic and financial targets. These include raising the primary budget surplus (the difference between revenues and current expenses excluding debt repayments and interest) to 2.5 per cent of GDP. This is the highest primary surplus recorded in the past 20 years. This achievement helped reduce the overall budget deficit to 5.1 per cent during the first eight months of the current fiscal year (July–February 2024/2025). Besides, he adopted a strategy for the first time to control public debt and reduce its ratio to GDP to 81 per cent through diversifying financing sources and tools over the medium term. At the same time, Kouchouk succeeded in strengthening communication with the private sector and instilling confidence. He launched encouraging fiscal policies, initiatives, and programmes, offering nearly 100 billion Egyptian pounds in liquidity to support investment expansion in tourism, industry, exports, automotive sectors, SMEs, and entrepreneurship. This was clearly reflected in the motto chosen for Egypt's 2025–2026 general budget: "Growth, Stability, and Partnership with the Business Community". This slogan expresses the upcoming phase's focus on encouraging the private sector "without taxation pressure". It also emphasises sustainable and stable fiscal policies supporting economic growth, production, and employment. Private Sector Kouchouk's policies, along with those of the wider economic team, have begun to bear fruit. In the first half of the current fiscal year, the private sector accounted for about 60 per cent of total investments, an 80 per cent growth rate. Efforts are underway to offer 10 investment projects for public-private partnership during this fiscal year, a step that witnessed unprecedented slowdown along the past decade. In only six months, the tourism sector grew by 13.1 per cent, transformational industries grew by 12.4 per cent, and telecommunications and information technology grew by 15.1 per cent. The economic growth rate rose from 2.5 per cent to 3.9 per cent between July and December 2024. The current fiscal policies overseen by Minister Ahmed Kouchouk and his team are considered sophisticated, humane, logical and realistic. At the same time, they consolidate Egypt's status as a regional model. This is especially important given the difficult global context. Egypt adopts advanced fiscal policies that drive economic growth and prosperity. They also promote public-private partnership, improve government efficiency and reduce the state's role in the economy. For the first time, there is full coordination between fiscal, monetary, investment, and growth policies. The current economic cabinet is professional and highly flexible. It works as a team to resolve difficult issues. The finance portfolio is the most critical, and its role is no less important than those responsible for national security. It is not a normal economic ministry. It is a main pillar of the Egyptian state, its development strategies, and its Egypt's vision 2030. Ministry's Central Role It plays multiple roles, including the political role of shaping fiscal policies to achieve economic and social development. It prepares financial plans and programmes to meet national goals, drafts the general state budget and submits it to relevant authorities. It also has an important supervisory role. This includes overseeing the implementation of the general budget and monitoring all financial and accounting systems. It also plans and follows up on procurement and sales for various government entities. Furthermore, it has a legislative role. This involves studying all financial legislation and advising on laws prepared by other ministries. It participates in international agreements concerning grants and loans, manages the debt portfolio and proposes legislation linking the general plan with local and foreign currency financing plans. Finally, it performs an executive role including measuring financial resources, monitoring surpluses, managing public revenues and reserves, and conducting treasury operations. The ministry carries out these functions through highly important departments and agencies. These include the Egyptian Tax Authority, Customs Authority, Real Estate Tax Authority, and other key entities managing various files. It is not an exaggeration to say that we were expecting completely different financial tools for managing the tax file. For example, replacing the traditional tax collection and authoritarian methods, which dominated for years, with a new philosophy based on partnership, integration, and support to stand firmly on the global economic map. It also prepares to use tax competitiveness as a key factor to attract foreign investment after resolving conflicts and stabilising the local market. Meanwhile, many countries have doubled taxes, forcing major global investors to exit certain markets and seek alternative investment opportunities. Kouchouk's proactive efforts are among the pillars attracting these opportunities. I believe they will be a main focus for the professional minister in the coming period. Partnership Token There is no doubt that Kouchouk's new tax policies represent a "partnership token" with the business community. They are a foundation for more incentives and procedures to support Egypt's corporate business climate. The minister confirmed that his "main concern" is expanding the tax base. He aims to encourage voluntary compliance to attract new taxpayers. He also promotes small and medium enterprises to join the tax system to benefit from privileges such as a simplified tax system tailored to their nature, and reduced administrative and financial burdens, facilitating tax compliance and creating an encouraging environment for investment and growth. This is the first real step to encourage the informal sector to voluntarily join the formal economy. Development efforts are not limited to modernising the system. They also include high-level training for employees. This aims to build specialised cadres with international-level expertise in taxation. As local and global changes continue, the ministry of finance remains at the heart of decision-making. This raises essential questions, such as: * How is fiscal policy managed in the toughest times? * When will the other side of economic reform, improving citizens' lives, be achieved? Citizens have borne, and still bear, very high costs. * Can we say that the hardest part of reform, especially regarding prices and inflation, is over? * What about the nature of the second phase of the upcoming tax and customs facilitation package? * What are the ministry's strategies to reduce public debt rates? * What about the transition to cash subsidy, and how will it affect citizens? Answering these questions and others will paint a complete picture of Egypt's financial reality. It will also increase confidence among local and international private investors.
