Egypt targets 69.5% public debt-to-GDP ratio by 2030

Egypt aims to reduce its public debt-to-GDP ratio to around 69.5 per cent by 2030, a target discussed during a meeting led by Prime Minister Moustafa Madbouly on Wednesday to follow up on the implementation of the Egypt 2026 Forum’s recommendations to reduce public budget sector debt.

During the meeting, Madbouly directed the preparation of a detailed plan assigning specific responsibilities to each ministry and government entity to accelerate debt reduction.

He stressed that reducing public debt is a key government priority, aimed at strengthening fiscal sustainability, easing debt-servicing burdens and creating greater fiscal space to direct resources towards priority sectors and improve public services.

The recommendations also include setting specific ceilings for managing public debt, external debt and sovereign guarantees, while strengthening coordination among government entities.

Finance Minister Ahmed Kouchouk said the public budget sector debt-to-GDP ratio had declined by around 14 per cent between June 2023 and June 2026, continuing a downward trend that began in FY 2023/2024.

He added that external debt owed by public budget sector entities declined during FY 2025/2026 by an amount equivalent to around 3.9 per cent of GDP.

Kouchouk also presented proposals to reduce public debt, along with the related measures and advantages, noting that the government aims to accelerate debt reduction, achieve higher growth rates and diversify funding sources through innovative financing instruments.

Madbouly directed the preparation of a detailed implementation plan outlining clear responsibilities for each ministry and government entity, in preparation for submission to President Sisi.