The government decree didn’t give further details on what projects might be affected
The government issued several new decisions and decrees on Monday at aimed at curbing state spending, pausing expensive new projects as the EGP continues to slide against the USD and other foreign currencies.
Yesterday, Prime Minister Mostafa Madbouly directed the hiatus of any pending projects that require foreign currency until the end of the fiscal year (FY) as part of efforts to deal with rising inflation and a shortage of foreign currency.
The government decree didn’t give further details on what projects might be affected.
The PM released a series of regulations to rationalize public expenditure, including requiring several ministries to seek approval from the Ministry of Finance and central bank on foreign currency expenditure, as well as pause funding non-essential projects and spending.
The decree also restricts government and state officials from non-essential travel without the PM’s approval, exempting those from the Ministry of Health and state agencies that procure vital commodities as well as the defense and interior ministries.
Additionally, it included a stipulation that requires the Minister of Finance to present a periodic report every two months to the Cabinet on the state’s commitment to these decisions and their results.
The announcement comes as the country continues to suffer from a foreign currency shortage and the depreciation of the EGP. The EGP has now fallen to 27.65 against the USD at the time of writing (3:45 pm CT).
Egypt’s annual inflation rate surged by 21.9% during December 2022, reaching its highest annual core inflation rate since November 2017.
