The Egyptian government has reportedly requested an extension from the International Monetary Fund (IMF) regarding the timeline for implementing economic reforms tied to its loan program. According to an anonymous government official, the government is seeking to spread out the implementation of these reforms over a longer period.
This request comes in the wake of President Abdel Fattah El Sisi’s recent call for a review of the agreement with the IMF. The president expressed concern about the potential impact of the reforms on the public, particularly in terms of increased household expenses and inflation.
The IMF approved an expanded loan package of $8 billion in March after successfully completing the third review of Egypt’s economic reform program. Economist James Swanston noted that the reforms Egypt aims to delay primarily involve subsidy reductions, which have contributed to rising prices for fuel and bread.
The Egyptian government’s decision to seek an extension for the IMF reforms highlights the challenges it faces in balancing economic stability with social welfare. As the country continues to navigate these complexities, the outcome of the negotiations with the IMF will have significant implications for Egypt’s economic future.
