External Debt Reduction Target Set At Up To USD 2 Billion A Year

The Presidency announced plans to reduce the external debt of its budget authorities by USD 1 to 2 billion annually, following a fiscal strategy meeting between President Abdel Fattah Al-Sisi, Prime Minister Mostafa Madbouly, and Finance Minister Ahmed Kouchouk.

During the meeting, the finance ministry reviewed outcomes from a tax facilitation initiative, which added EGP 54.76 billion in declared taxes after more than 450,000 new or amended tax returns were filed. Around 110,000 tax dispute settlement requests were submitted as of June 19th, while over 52,000 small projects applied for tax incentives.

From July 2024 to May 2025, Egypt recorded a significant primary surplus and a narrowed deficit. Tax revenues jumped by 36%, reportedly driven by expanded economic activity and an enlarged tax base rather than the imposition of new taxes. The government also reviewed its ongoing reforms under the International Monetary Fund programme as negotiations continue on the fifth review.

The discussion touched on global economic instability, particularly the effects of the Iran-Israel conflict on commodity prices and trade costs. Egypt has been working with the IMF since a multi-billion-dollar deal was signed in 2022 aimed at supporting economic resilience through structural reforms.