Source: Youm7
In light of accelerating military developments in the region and the sharp rise in global energy prices and market volatility, the Egyptian government is closely monitoring the situation through full coordination between the Central Bank, ministries, and relevant agencies. Prime Minister Dr. Mostafa Madbouly directed the activation of a daily monitoring mechanism for global market developments—especially energy prices and international financial flows—allowing proactive measures to protect the national economy, ensure local market stability, maintain energy supplies, and sustain economic activity.
The government is working to secure the country’s energy needs by tracking supply schedules and existing petroleum contracts daily, leveraging prior contractual arrangements and price hedges that cover a significant portion of imports to limit the impact of global increases. Coordination with international energy partners is ongoing to ensure regular supplies and boost local production.
Parallel coordination with the Central Bank aims to strengthen foreign currency resources by accelerating scheduled financing tranches from international institutions, expanding the government’s offering program in the coming months, and attracting foreign direct investment. These efforts support Egypt’s ability to cope with global changes, while backing exports and ensuring competitiveness in industry and trade.
Given the high uncertainty surrounding global developments, the Central Crisis Committee has adopted a package of temporary proactive measures to enhance the economy’s resilience, stabilize local markets, and ensure the availability of goods and petroleum products until global trends become clearer. These measures include:
Immediate spending rationalization within government bodies, reflecting the state’s commitment to share the burden alongside other measures, while considering social dimensions.
Energy-saving measures in government entities and energy-intensive activities to reduce fuel and electricity consumption, without disrupting essential services.
Daily field monitoring by governors to enforce electricity-saving rules, including street lighting schedules and advertising sign illumination.
A Cabinet decision to reprioritize public spending, delay non-urgent expenses, limit travel, conferences, and promotional costs, and focus investment on near-complete projects.
Studying the possibility of referring price manipulators to military courts, as directed by President Abdel Fattah El-Sisi, to prevent exploitation of current exceptional circumstances.
Adjusting prices of certain petroleum products to reflect part of global increases, while the state continues to absorb a large portion of the actual cost to maintain supply stability.
Extending increased cash support under the Takaful and Karama programs and for low-income families with ration cards for an additional two months.
Announcing early wage and income improvements for state employees starting FY 2026/2027, including raising the minimum wage.
Continuing provision of subsidized essential food commodities for vulnerable groups.
Maintaining balanced energy pricing policies that consider social aspects, with the state covering much of the gap between actual cost and local sale prices.
The government also reaffirmed its commitment to economic and fiscal reform, including tax facilitation packages, customs clearance improvements, and preparing the next budget to balance growth with fiscal discipline. Efforts will continue to enhance the business environment, accelerate privatization programs, expand infrastructure projects via public-private partnerships, and boost exports as a key growth driver.
Monetary policy remains focused on reducing inflation, ensuring exchange rate flexibility, and securing production inputs for the Egyptian market.
Finally, the government stressed that these measures are temporary and transitional, designed to address exceptional global energy market conditions. It will continue daily monitoring and adjust policies if global energy prices improve, aiming to protect local market stability and ease burdens on citizens and productive sectors. The government called for public awareness and collective effort to overcome this exceptional phase with minimal impact.
