Egypt Surges Second Stimulus Package by US$4.87 bln

Egypt’s Finance Minister Ahmed Galal unveiled on Monday the launch of the second stimulus package, which amounts to EGP 33.9 billion ($4.87 billion), with most of it coming from aid pledged by the United Arab Emirates.

Previously the finance ministry said Egypt planned to spend around EGP 30 billion. The first stimulus package, amounting to EGP 30 billion, was launched in August, Reuters said.

Galal added that the new spending would be financed mostly by the United Arab Emirates, one of the Gulf Arab countries that has pledged billions of dollars in support for Egypt.

Analysts say the army-backed authorities are anxious to get the economy moving to shore up public support and curb the scope for more unrest as the government moves along a political transition plan leading to elections this year.

Nearly EPG 20 billion will be spent on development projects and EGP 2 billion would be directed towards developing a corridor around the Suez Canal under the second stimulus package, according to the statement.

Twelve billion pounds will go towards financing social programmes, including a rise in the minimum wage.