Egypt will slow down major state projects that require significant fuel and diesel use for at least two months, while also reducing fuel allocations for all government vehicles by 30%, Prime Minister Mostafa Madbouly announced on Saturday, according to Reuters.
Madbouly added that both public and private sector employees, excluding those in essential services and manufacturing, will work remotely every Sunday throughout April.
He noted that this arrangement could be expanded to an additional day each week or extended for several months if the war continues.
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These steps are part of wider efforts to manage the economic pressure caused by the Iran war, which has pushed up energy prices and put strain on government finances.
Although Egypt is not directly involved in the conflict, it has been significantly affected, particularly in the energy sector, due to its reliance on imported fuel. The disruption to oil and gas production and trade across the Middle East has sharply increased costs.
In response, the government has already implemented fuel price hikes as well as increases in public transportation fares.
Despite these measures, Madbouly emphasized that they are temporary. He stated that the government is working to support citizens and is currently discussing a potential increase in the minimum wage, along with higher budget allocations for healthcare and education in the upcoming fiscal year.
Meanwhile, Finance Minister Ahmed Kouchouk said that debt servicing costs, which usually take up the largest portion of Egypt’s budget, are expected to rise by only 5% in the next fiscal year beginning in July.
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Image Credit: Daily News Egypt
