Egypt will largely align with the International Monetary Fund's fiscal consolidation reforms by cutting public investment, reducing subsidies and widening its tax base, but Cairo will carry these out in a piecemeal fashion to minimize domestic unrest from economically vulnerable Egyptians. As part of Egypt's expanded financing agreement with the International Monetary Fund (IMF) signed in March 2024, Cairo has been implementing piecemeal reforms to secure additional tranches of the $8 billion loan. In July, Egypt had a successful third review of its loan under the IMF program, after which the fund disbursed an additional $820 million. At the time, the IMF praised Egypt's progress, citing decreasing inflation rates, the elimination of foreign exchange shortages, and reaching fiscal targets. Nevertheless, despite improvements in Egypt's economy, the IMF urged Cairo to make improvements toward fiscal consolidation by increasing tax revenue, removing fuel subsidies by December 2025, and increasing private investment. In...
