Details of the new social protection package in Egypt and the disbursement date
The Egyptian public is on tenterhooks today, awaiting the press conference to be held by the Prime Minister to announce the details of the new social protection package . This step comes in response to direct instructions from Egyptian President Abdel Fattah al-Sisi, aimed at easing the financial burdens on citizens, especially the most vulnerable groups, before the start of the holy month of Ramadan.
Crucial timing and proactive support before Ramadan
Cabinet Spokesperson, Counselor Mohamed El-Homsany, confirmed that the government is finalizing preparations for the launch of this package, which comes at a crucial time. With the approach of Ramadan, a month that typically sees a surge in consumption, the government is striving to ensure the availability of funds for Egyptian families. In this context, it has been decided to expedite the disbursement of February salaries for government employees, starting this week. This proactive step aims to enable citizens to meet their basic needs before the holy month begins.
Target groups: A protective umbrella for those most in need
The new package primarily aims to expand social safety nets. Al-Homsani explained that the greatest focus will be on beneficiaries of the conditional cash transfer program "Takaful and Karama," in addition to pensioners and low-income groups. These measures come as part of the state's strategy to address global economic challenges that have impacted local markets, necessitating direct government intervention to regulate markets and mitigate the effects of inflation on vulnerable social groups.
The context of economic reform and the IMF relationship
This social package cannot be separated from the broader economic context currently facing Egypt. Its announcement coincides with the anticipation within economic circles of the completion of the reviews related to the financing program with the International Monetary Fund . The IMF has included the fifth and sixth reviews of the Extended Fund Facility program and the first review of the Resilience and Sustainability Program on the agenda of its Executive Board meeting scheduled for February 25.
Economists believe that strengthening social protection programs is one of the essential requirements for the success of economic reform programs, as both the IMF and the state ensure the necessity of a "social safety net" that protects the poor from the consequences of structural reforms and exchange rate liberalization.
A positive outlook for the Egyptian economy
In a related context, international indicators point to a gradual improvement in the outlook of financial institutions regarding the Egyptian economy. If the anticipated reviews are approved, Egypt will receive $2.7 billion in financing, which will bolster foreign currency reserves and stabilize the exchange market. The International Monetary Fund (IMF) has raised its forecast for Egyptian economic growth during the current fiscal year to 4.7%, with projections indicating an acceleration to 5.4% by 2027, supported by the continuation of fiscal and monetary reform policies and the government's efforts to attract foreign investment.
