Minister of Finance Mohamed Maait has announced that government investments will increase by an additional EGP 10bn with immediate effect, as part of presidential directives. The money will go towards providing new job opportunities, paying contractors and suppliers dues, and improving the level of services provided to citizens.
In a statement, Thursday, Maait said that in implementing the directives, an additional EGP 2bn will also be made available between now and June, to pay delayed dues to exporters. This will allow the payments without the need to provide a tax payment certificate, in light of the ongoing coronavirus (COVID-19) pandemic.
He added that the financial injection is directed at those dealing with government agencies, to ensure they are paid their financial dues in the current difficult economic circumstances. Those receiving the payments will be required to submit a tax status certificate, until they have the liquidity and are able to pay the tax dues.
Maait explained that the economic reform programme will signifcantly contribute towards alleviating the repercussions of the ongoing coronavirus pandemic.The government is keen to support the economy, to ensure production continuity with full commitment to precautionary and preventive measures.
The government has also stressed its desire to provide strategic and basic commodities to citizens and support the service sectors affected the ongoing stagnation. The necessary financial allocations were made for the Supply Commodities Authority to import 1.6m tonnes of wheat and provided EGP 15bn with immediate effect. The finance would go towards purchasing 3.5m tonnes of local wheat and EGP 1bn per week to subsidise bread.
Maait added that the public transport authority has received EGP 40m, textile companies have received EGP 115m, and iron and steel companies EGP 50m to pay workers’ wages.