During the meeting, Kouchouk said Egypt’s political leadership has instructed that debt reduction be treated as a top priority. He noted that revenues generated from major deals were channelled toward improving debt indicators, citing proceeds from the Ras El Hekma and Alam Elroum projects, which helped reduce external debt by $4 billion, at a time when average debt levels in other emerging economies rose by around 8% over the same period.

 

“We reduced debt from 96% of gross domestic product in 2024 to around 80% in 2025, and we expect a further decline in 2026 in light of the improvement in debt indicators,” Kouchouk said. “We are reducing external debt by between $1 billion and $2 billion annually,” he added.

 

Kouchouk said the Ministry of Finance is working to increase financial resources, support exports of goods and services, and strengthen the role of the private sector as the main driver of economic growth.

 

Focus Areas of Second Tax Facilitations Package

Kouchouk said the second package of tax facilitations primarily targets compliant taxpayers and includes measures such as faster tax refunds and improved tax clearing procedures.

 

He added that the package also introduces key reforms related to real estate transactions, particularly for individuals conducting multiple transactions within a single fiscal year.

 

He said the Real Estate Tax Authority will adopt a new operating approach that enables taxpayers to access detailed information on their tax obligations and complete payments through mobile applications.

 

Kouchouk also noted plans to raise the tax exemption ceiling for first homes.

 

He reiterated that the government aims to expand the tax base, curb tax evasion and attract new compliant taxpayers who submit their tax returns on time.

 

Kouchouk said three specialised service centres will be established in Sheikh Zayed City, New Cairo and North Coast to provide technical support and tax services in partnership with the E-Tax Company.

 

Tax and Customs Neutrality

Kouchouk said all tax and customs exemptions previously granted to state-owned entities have been cancelled. He added that any government-owned company seeking to generate profits will be treated in the same manner as private sector companies, as part of efforts to ensure tax and customs neutrality and to provide the private sector with equal opportunities.

 

Top Priorities of Finance Ministry

Kouchouk said the Ministry of Finance is focusing on four main priorities. These include launching a new partnership with the business community to restore confidence, improve services and provide clarity of vision and certainty; adopting a balanced fiscal policy that supports growth and economic activity while maintaining financial discipline and competitiveness; implementing an integrated strategy to ensure the sustainability of debt for budget agencies; and securing sufficient financing to support social protection, human development and improvements in living standards.

 

“Working on these four priorities simultaneously is difficult without a strong partnership with the private sector,” Kouchouk said.

 

Overview of Last Year’s Results

Kouchouk said private investment grew by 73% over the past year, while tax revenues rose by 35%, reaching 600 billion Egyptian pounds without imposing new tax burdens.

 

He said the ministry received around 400,000 applications for tax dispute settlements and processed 650,000 new or amended tax returns worth a total of about 80 billion Egyptian pounds.

 

Taxpayers also voluntarily disclosed business activities valued at about 1 trillion Egyptian pounds annually.

 

Addressing Public Opinion

As part of efforts to address public opinion, Kouchouk said the Ministry of Finance will launch a medium-term public financial policy strategy, a medium-term debt management strategy and a medium-term tax policy strategy.