The Egyptian Ministry of Electricity is set to pay down the total debts to the Ministry of Petroleum within five years, Minister of Electricity Mohamed Shaker told Al Borsa.

The Ministry of Electricity has accumulated EGP 127 billion in debt, money which has been spent on providing fuel to electricity plants.

The sector will repay its debts in full in order to lift subsidies on electricity prices by fiscal year (FY) 2021/22, Shaker pointed out, adding that the Ministry of Finance will help the electricity sector to pay off the debt.

The ministry plans to completely remove electricity subsidies by FY 2021/22. The Ministry of Finance will continue providing financial support to low-income citizens, but the electricity ministry will not contribute any of its budget towards subsidies.