Egypt is making clear progress on its macroeconomic reform programme, an International Monetary Fund (IMF) official said on Fiday. The official highlighted “notable improvements in inflation and in the level of international reserves” as key achievements.
“As Egypt’s macroeconomic stabilization is taking hold, it’s now the time for efforts to focus on accelerating and deepening reforms, including reducing the footprint of the state, leveling the playing field, and improving the business environment in Egypt,” Julie Kozack, IMF’s Director of Communications, told a press briefing in Washington DC on Friday.
Kozack cited what she described as productive discussions between an IMF team and the Egyptian officials during its visit to Cairo on May 6-18.
“Discussions are continuing virtually to finalize agreement on remaining policies and reforms that could support the completion of the Fifth Review under the EFF. So again, discussions around the Fifth Review are continuing virtually,” she said.
“What I can add is that in order to deliver on these objectives, particularly with respect to reducing the footprint of the state, leveling the playing field, et cetera, it’s important to decisively reduce the role of the public sector in the economy. The implementation of the state ownership policy, as well as the asset divestment program in sectors where the state has committed to reduce its footprint, will be playing a critical role in strengthening the ability of Egypt’s private sector to contribute to growth and activity in the Egyptian economy, which will ultimately support improvements in livelihoods of the Egyptian people. We remain committed to supporting Egypt in building economic resilience and fostering stronger private sector-led growth,” Kozack said.
