The IMF, the American Embassy in Cairo and Oxford Business Group have acknowledged the efforts undertaken by the Egyptian government to upgrade the economic performance as observed in figures released...

The IMF, the American Embassy in Cairo and Oxford Business Group have acknowledged the efforts undertaken by the Egyptian government to upgrade the economic performance as observed in figures released that reflect an improved  balance of payment, a surge in foreign reserves that have led to stable exchange rates and  a drop in inflation rates. A recent cabinet report has noted the IMF report as saying that the privatization plan is proceeding at a fluent pace and that customs and tax reforms have both contributed to transparent financial dealings. The IMF report has equally called for greater reforms to eradicate obstacles to privatization, namely weak financial intermediaries, and red tape that has led to a large part of national savings being absorbed by the public sector. The IMF report has concluded that the reforms demand proper timing by the government to accommodate the changes. The IMF has also called for upgrading the data base on statistics on the balance of payment and other economic figures tol reflect an authentic picture of the economic performance. The report has confirmed a mutual understanding by the government and the IMF on the necessity to cut on expenditure through a sizeable reduction of government institutions and upgrading government spending  by proportionately directing general spending to the poorer categories in Egypt. The report has also called on the Central Bank of Egypt to focus on maintaining a low inflation rate and to continue to reform the banking sector.  The report has noted that the Egyptian government has stepped up its privatization program and has reduced red tape while supporting a more flexible environment in the labor market, in addition to offering facilities to small businesses and medium sized companies to receive the necessary funding. Meanwhile, the American Embassy’s annual report  on economic development in Egypt has said that the country has reclaimed its vibrancy during the fiscal year 2004/2005 following the stalemate in the years 2000-2003  and describing the soaring rates in GDP to 5.1% during the fiscal year 2003/2004 as a consequence to increased foreign reserve revenues. The report has noted that the government of PM Ahmed Nazeef has begun to plant a number of reform plans since July 2004 including a tax and customs reform, an upgrade in the banking sector and an increased pace in privatization. (source:Al-Ahram)