Egypt working with IMF for medium-term revenue strategy targeting 2% GDP increase: minister

Egypt and the International Monetary Fund (IMF) are working together to draft a medium-term revenue strategy (MTRS) that aims to mobilise the country’s revenues, through which revenues would increase by 2 percent of GDP over four years, Egyptian Finance Minister said on Tuesday.

The strategy is expected to support Egypt’s budget targeted surpluses and to create room for priority spending on health, education and social protection, Minister Mohamed Maait said at a meeting at the American Chamber of Commerce (AmCham Egypt).

The IMF is expected to complete its final review of Egypt’s IMF-backed Stand-By Arrangement programme in May, which paves the way for Egypt to receive $1.6 billion as a third tranche of its $5.2 billion loan.

The IMF approved the loan for Egypt in June 2020, which will be tapped in financing Egypt’s structural reform programme it announced on Tuesday.

The minister also revealed that the government has received additional support from the IMF, World Bank and other international financial institutions on the international tax and digital economy issues to be followed in Egypt.