Minister of Finance Dr. Youssef Boutros Ghali has announced that the government is about to launch the economic courts law to speed up the closure on pending cases in efforts to streamline investments.  He announced that foreign investors have so bought seven billion dollars of treasury bills.

He added that the government is keen to upgrade the credit market to finance investments saying that credit has grown between 6%-8% which is not enough to support growth rates of 7% with goals to bring it to 14%.

The Minister said that the government will continue to support subsidies and broaden the circle of beneficiaries.  He said subsidies on strategic goods do not increase above 2% from the local gross domestic product while subsidizing energy is between 6%-8% and that will be reviewed in order to reach a balanced formula to get the rich to support the poor.‏

He added that the amount allocated to the fund for the development of exports has soared to 2 billion pounds and that the government is launching a plan to encourage participation of the private sector (PPP) in a number of infrastructural projects and already 300 schools are set for the first phase.

He said the next stage will see more energy directed to utilities projects, water sanitation, the construction of hospitals, paving roads through the PPP.  Other projects include the transport of natural gas to the homes and shedding the butagas cans.  The projects are expected to save 600 pounds per family in the state budget.

The Minister noted that the trade deficit in the first half of the fiscal year 2006/2007 has reached 49.1 which is a mild increase over last year.

The Minister noted that there is no reason to fear a trade deficit because that will mean an increase in imports and therefore an increase in operation and work opportunities where imports have soared to 2.7% while exports have soared by 10.6%.  He said that exports are one of the pillars for economic growth while local investments have increased in the first quarter  by 32% over last year.‏

He added that FDIs have increased by 6.6%

Ghali noted that the government has a plan to prepare the youth.  500 million pounds have been allocated to the Ministry of trade and industry to adapt new graduates to the demands of the labor market.

Dr. Ghali explained that the government has succeeded in the reform program in light of good governance which demands discipline and legislation.  He also called for respect of trade agreements and rapid closure on pending disputes as well as a stand against monopoly.