Egypt has unveiled a new economic strategy with the ambitious goal of reducing its external debt burden by $1-2 billion annually.
The plan is a central component of the Government’s broader effort to stabilize the nation’s economy, manage its substantial debt-servicing costs, and reassure international markets and investors.
This aggressive target will be pursued through a combination of fiscal discipline, including controlling public spending and reducing non-essential expenditures, alongside initiatives aimed at boosting foreign currency inflows.
The strategy is designed to complement the structural reforms mandated by Egypt’s recent $8 billion agreement with the International Monetary Fund (IMF). Key to achieving this debt reduction will be maximizing revenue from major state assets, particularly those from the lucrative divestment program and earnings from the Suez Canal. The government’s overarching objective is to place the national debt on a clear downward trajectory, thereby easing the significant pressure that debt servicing places on the state budget and creating a more sustainable fiscal future.