The Egyptian government is determined to complete the energy subsidies’ reforms within the framework of the economic reform program agreed upon with the International Monetary Fund (IMF), the Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, told CNBC Arabia.

Egypt announced rationalizing subsidies plan during 2013, years before the IMF agreement, as the country believes the subsidies reform is good for both the economy and its citizens, El Molla said. While higher-income citizens benefit from subsidies, lower-income people don’t, the minister pointed out.

The Egyptian government plans to reduce subsidies of petroleum products by 26% and electricity subsidies by 47% in the annual budget for the 2018/2019 fiscal year (FY), Amwal Al Ghad reported.

The government aims to cut its expenditure on subsidies by more than quarter, reducing the budget from EGP 120.926 billion to EGP 89.075 billion.