Egypt moves steadily towards better political and economic future

Economic growth opportunities and a plan to promote leading sectors in order to create new jobs

Financial reforms to rearrange spending priorities and restoring confidence in economy

Minister of Finance, Hany Kadry Dimian, confirmed that Egypt moves steadily supported  by its people  towards  implementing political roadmap ,and establishing the state  institutions during the coming period, having positive effects on economy performance. He explained that establishment of institutions is the basis point to achieve new economic leap, pointed out that there are  significant opportunities for growth  in Egyptian economy, as the government is working currently on assisting some growth leading sectors that can achieve fast recovery in economic  activity and increase employment opportunities.

Minister of Finance stressed the government’s determination to rapid implement some of financial reforms necessary to restore confidence in economy , rearrange spending priorities toward social fields ,and improve targeting policies through providing cash subsidy for poor, in order to achieve financial and economic stability in the medium term.

This was during the meetings  held by the Minister of Finance on the margin of spring meetings for the International Monetary Fund and the World Bank, in which he presented the political and economic developments and future outlooks for Egyptian economy.

The Minister of Finance mentioned that on the top of financial reforms targeted by the Egyptian Government is expanding the tax base, in particular, the tax revenues are still less than 15% of GDP; such rate is one of the least on the world and the developing and emerging countries’ level.

He explained that Ministry of Finance is preparing amendments on income tax law aiming at expanding the tax base, eliminating tax evasion and avoidance. As well as, the Ministry is preparing  a new system for the transition to full application of VAT (Value Added Tax).

He confirmed on the importance of accelerating the implementation of petroleum products subsidy rationalization procedures within the frame of rearrange the public expenditure priorities, declaring the necessity of working on more than one path to rationalize subsidy to ensure the best use of energy resources.

On the other hand, the Minister of Finance gave a speech yesterday in front of the Atlantic Council; an international research and intellectual center, also he spoke to American Chamber of Commerce, and to Egyptian-American Business Council, whereas he focused on reviewing the situation of Egyptian economy, its ability to get out of the current crisis, the recovery indicators and the reforms planned by the government.

The Minister participated with the Minister of Planning and International Cooperation, Dr. Ashraf Al-Araby, in the 24-group's meetings, as Egypt heads its current session. Also, he held joint meetings with Ms. Serry Moulyane, the managing director of the World Bank and responsible for the  Bank's operations and activities, in addition to a meeting with the Egyptian staff  in the  IMF and the WB; whereas the Minister replied to their inquiries. The Minister of Finance cleared that the governmental work needs the Egyptian efficiencies and cadres working abroad, he invited them to return and join the government to benefit from their experiences during the coming period in the establishment process.