CAIRO: The Egyptian government may temporarily freeze prices some industries pay for energy to help Egypt s economy withstand a global financial crisis, the country s trade minister was quoted as saying on Thursday. The government was studying measures including fixing energy prices, increasing export insurance, and reducing transportation costs, state-owned Al-Ahram daily reported, citing Trade and Industry Minister Rachid Mohamed Rachid. The main purpose of these measures is to ensure the continuance of the rate of economic growth of about 7 percent, he said. The Egyptian government said this month it was maintaining its growth target at 6 to 7 percent for the current fiscal year and would take steps to counteract any fallout from the global financial crisis. Egypt said last year it would gradually eliminate natural gas and electricity subsidies for energy-intensive industries to help reduce its budget deficit. Moody s said this year Egypt had the widest fiscal deficit in relation to government revenues of any country with a similar rating. Cairo-based investment bank Beltone Financial said it expects the government to postpone further energy price increases for industry until the global financial situation stabilizes. Once the situation is clearer, we expect the implementation of the plan to resume, with a possible increase in energy prices by late 2009 or early 2010 at the latest, the bank said in a note. -Reuters
