Egypt might shift to ‘war economy’ mode if regional tensions rise – PM

Egypt’s Prime Minister Moustafa Madbouly warned on Wednesday that a regional war could have severe consequences for Egypt, necessitating a shift to a ‘war economy’ mode.
“If the region were to face a regional war, there would be severe repercussions, and the state would consequently have to deal with what can be described as a “war economy.” Therefore, it is essential for the state to focus on ensuring the continuity, stability, and sustainability of providing goods, services, and infrastructure for the Egyptian citizen under the current circumstances.” Prime Minister Madbouly told a press conference.
To mitigate the potential impact, he said the government must prioritise ensuring the uninterrupted supply of essential goods, services, and infrastructure to Egyptian citizens.
The prime minister urged citizens and government officials to recognise the seriousness of this situation, emphasizing the need for greater fiscal responsibility and efficiency.
The Cabinet meeting stressed the importance of preparing for “worst-case scenarios” by reducing unnecessary expenditures and consumption. This proactive approach will enable the government to develop effective strategies to address any challenges that may arise, he added.
Prime Minister Madbouly also said he had assigned specific tasks to the ministers of petroleum, electricity, finance, and the Central Bank of Egypt (CBE) Governor to safeguard the Egyptian economy and minimise the negative effects of a potential regional conflict to “the greatest extent possible.”

The Egyptian Cabinet