Yasser Sobhi, Deputy Minister of Finance for Fiscal Policies, stated that the goal is to achieve financial discipline and bring the debt-to-GDP ratio below 85% of GDP within the next three years. In June, Egypt reduced the external debt of public entities by around $4bn.
Speaking at a Monday conference hosted by the Center for International Private Enterprise (CIPE), Sobhi emphasized that Egypt is on the verge of a new phase of stability and economic growth, led by the private sector. He noted that Egypt is open to partnerships with both local and international private sectors to build a more competitive, diversified economy capable of improving living standards.
Sobhi highlighted efforts to encourage private sector involvement in key projects across transportation, health, education, and other public infrastructure and services. He pointed out that significant progress has been made recently, with the coming phase set to witness more public-private partnership (PPP) contracts, providing greater and better opportunities for private-sector engagement.
“We are pursuing ambitious fiscal reforms to strengthen the role of the private sector in driving development, expand the local production base, and enhance our competitiveness in global markets,” Sobhi said. He also underscored efforts to improve public financial management, boost government spending efficiency, and achieve fiscal balance by easing the burden on the budget. This includes setting a cap on government spending and reprioritizing key sectors such as health, education, and infrastructure.
Sobhi stressed that the success of these fiscal reforms largely depends on creating a business-friendly environment that attracts and incentivizes investment. To this end, the government is working on improving the relationship between the tax system and the business community, building new bridges of trust, ensuring tax stability, simplifying administrative and tax procedures, promoting transparency, and fostering a business environment characterized by competitive neutrality.
He further noted that a new package of investment incentives has been introduced through initiatives aimed at stimulating growth in vital sectors, particularly industry, exports, tourism, renewable energy, and technology.
