International Monetary Fund (IMF)’s Mission Chief for Egypt, Chris Jarvis, said IMF backs Egypt’s plans to remove fuel subsidies within three years and push inflation down to single digits, reported Nasdaq News.
Egypt last year committed to an ambitious economic reform program that includes lifting subsidies, raising taxes, and loosening capital controls as part of a three-year $12b IMF loan.
Jarvis affirmed on Wednesday that Egypt is expected to receive the second loan installment of $1.25b within the coming few weeks and after the IMF’s executive board meets.
IMF concluded its first review of Egypt’s economic reform program, signing off on a staff level agreement to disburse its next payment and praising the country’s efforts so far.
Meanwhile, Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, denied any decision to increase gasoline price in the meantime, adding that no date has been set to increase it or even to agree on the rate of increase.