(Ecofin Agency) - To cushion the impacts of various global shocks on its economy, Egypt has implemented several reforms in areas such as industry, food self-sufficiency, and investment. However, further measures are needed to strengthen economic resilience.
Egyptian President Abdel Fattah al-Sissi (photo) has taken five new measures to improve people's living conditions, the presidency announced last Thursday.
The measures include a program to improve the income of public sector workers and private sector executives, which will increase by a minimum of about $32.5 per month. The minimum wage of Tier 6 workers is now about $114, against an average of $162.4 for Tier 3 workers. The minimum wage for Master's degree holders working in the country is now about $195 per month, and doctoral degree holders practicing in the country will have a minimum wage of nearly $227.4 per month.
Another measure provides for a 15% increase in the pensions paid to their holders and beneficiaries, effective April 1, 2023. Also, the annual income tax exemption threshold is raised from $780 to $975, effective from April 1, 2023. The last measure concerns the beneficiaries of Takaful and Karama support programs. The monthly support they receive will increase by 25%, starting from April 1, 2023.
The measures will strengthen Egyptians’ resilience to the impacts of the global crisis, namely rising energy and food prices.
“[…] The economic reforms implemented by the state since 2016 and the achievements made to maximize the country’s assets and develop infrastructure have significantly contributed to containing the effects of this global crisis in Egypt,” President al-Sissi estimates, admitting, all the same, that the situation has "caused a record rise in energy and food prices globally and significantly affected global supply chains,” in Egypt.