Egypt aims to cut external debt by $1-2bn annually, presidency says
Egypt is targeting an annual reduction in the external debt of its budget authorities by $1bn to $2bn, the Egyptian Presidency said on Tuesday, as part of a plan to enhance fiscal discipline for the 2024-2025 fiscal year.
The target was announced following a meeting between Egypt's President Abdel Fattah Al-Sisi, Prime Minister Mostafa Madbouly, and Finance Minister Ahmed Kouchouk.
During the meeting, the finance minister also presented results from a tax facilitation initiative, which has yielded EGP 54.76bn in additional declared taxes. The figure came after more than 450,000 new or amended tax returns were submitted.
The presidency statement noted that 110,000 requests to voluntarily settle tax disputes had been submitted as of 19 June2025, reflecting what the minister described as taxpayers' confidence and positive engagement with the initiative.Additionally, 52,901 taxpayers have applied for incentives and tax breaks available to projects with an annual turnover not exceeding EGP 20m.
A review of the fiscal performance from July 2024 to May 2025 showed a large primary surplus and a reduced overall deficit. Tax revenues grew by 36%, which was attributed to improved economic activity and an expanded tax base without imposing new burdens, alongside continued spending rationalisation.
The finance minister also reviewed the progress of reforms under the International Monetary Fund (IMF) programme and the ongoing negotiations to reach an agreement on the fifth review and the disbursement of its related tranche.
The discussion addressed global economic volatility and the impact of geopolitical events, particularly the conflict between Iran and Israel, on market uncertainty, shipping costs, and some commodity prices.
According to the spokesman, President Al-Sisi directed the government to learn from successful international experiences to stabilise fiscal and tax policies, aiming to improve the business climate, expand the tax base, attract investment, and boost production, exports, and employment.
The president also called for continuing efforts to enhance fiscal discipline while supporting allocations for social protection and human development, urging that all necessary financial and commodity precautions be taken in light of regional developments.
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