Egypt’s recent economic reforms have provided a degree of economic stability despite the repercussions of the ongoing coronavirus (COVID-19) pandemic, according to Minister of Finance Mohamed Moeit.
Moeit said the government has adopted a proactive policy to manage the crisis quickly by providing a financial package, amounting to about 2% of the GDP, to bolster the national economy.
He added that, by putting into effect the political leadership’s directives, the government is seeking to convert the coronavirus crisis into a positive push for Egypt’s industry and local production.
Moeit also said that the gas and electricity prices for industrial activities have been reduced, with the state treasury bearing the value. It is estimated that about EGP 10bn is needed for production to continue, while adhering to all precautions and preventive measures.
He added that the House of Representatives last week agreed to an increase in investments amounting to EGP 10bn. Government investments will also witness an unprecedented increase over the next fiscal year as its financial allocations will amount to EGP 280.7bn.
The government is also looking to put in place investments that contribute to boosting economic activity and increasing jobs, as soon as the coronavirus crisis comes to an end.
Moeit noted that the government’s EGP 41.8m payment, which is its share in the value of the Holding Company for Tourism and Hotels (HOTAC) profits, has been postponed for the fiscal year ending on 30 June. He noted that the postponement will remain in place until the pandemic has come to an end and the tourism and aviation sectors have regained stability.
The real estate tax on tourist and hotel establishments has also been postponed for a period of six months. The payment and settlement of dues on tourist and hotel establishments has been postponed for a period of three months, without fines or delay interest.