Prime Minister Mostafa Madbouly reviewed progress in the implementation of the recommendations of “Egypt Forum 2026” regarding reducing the debt of general budget entities as per the directives of President Abdel Fattah El-Sisi.
During a cabinet meeting on Wednesday, Madbouly said reducing public debt was a key government priority at the current stage, as part of efforts to strengthen fiscal sustainability, ease debt-servicing burdens and create greater fiscal space to direct resources towards priority sectors and improve public services.
He stressed the importance of implementing the recommendations of “Egypt Forum 2026”, which aim to establish a clear and sustainable path to reducing public debt to around 69.5 per cent of GDP by 2030.
The recommendations also call for adhering to specified ceilings for public debt, external debt and sovereign guarantees, while boosting co-ordination among government entities to align efforts and achieve the targeted goals.
Madbouly called for continuous monitoring of implementation and translating the recommendations into practical measures to reduce debt-servicing costs and strengthen the Egyptian economy’s capacity to achieve sustainable growth.
During the meeting, Minister of Finance Ahmed Kouchouk reviewed the ratio of general budget entities’ debt to GDP, which has been on a downward trajectory since the 2023/2024 fiscal year.
He said the debt-to-GDP ratio declined by around 14 per cent between June 2023 and June 2026.
The minister also said external debt owed by general budget entities dropped during the 2025/2026 fiscal year by an amount equivalent to around 3.9 per cent of GDP.
Kouchouk presented several proposals to reduce the indebtedness of general budget entities, outlining the necessary measures and their potential benefits.
He said the government seeks to accelerate debt reduction, achieve higher economic growth rates and diversify funding sources through a range of innovative financing instruments.
