Egyptians have been struggling through a protracted economic crisis which has seen a dramatic decline in the value of the currency and record-high inflation [Getty]
Egypt on Wednesday announced a fresh EGP 200 billion ($4 billion) social support package to help vulnerable households in the country cope with soaring living costs ahead of Ramadan, a time of family gatherings and feasts.
The package of measures includes wage hikes, greater cash support for low-income families, and higher pension payouts.
The announcement came a few weeks after Prime Minister Mostafa Madbouly pledged to provide additional financial support to citizens during the holy month.
Egyptians have been struggling through a multi-year financial crisis, which caused inflation to soar to record highs and put basic goods out of reach of many households, with hopes recent IMF deals will help stabilise the economy.
Under the measures announced on Wednesday, the government will from July raise public-sector salaries by at least EGP 1,100 a month and hike the public-sector minimum wage to EGP 7,000 ($138) – a 16% increase.
Pension payouts will increase by 15 percent while financial support for recipients of Takaful and Karama – a World Bank-administered cash assistance programme for vulnerable households – will rise by 25 percent.
Ration card-holders will receive extra support during the holy month, with the government set to make two payments during Ramadan and Eid Al-Fitr, when feasting and gift-giving are common.
The payments will be worth either EGP 125 ($2.5) or EGP 250 ($5) depending on the size of the family.
The government will also allocate EGP 10 billion ($197.4 million) to a new “economic empowerment fund” and will provide an additional EGP 6 billion ($118.5 million) in financial support for farmers.
Egypt’s economy entered a protracted crisis in 2022 on the back of Russia’s invasion of Ukraine, disrupting grain supplies to the North African state and sparking a huge rise in energy costs.
The Egyptian pound lost almost 70 percent of its value against the dollar during the upheaval, triggering a prolonged bout of severe inflation that has pushed millions deeper into poverty.
The government was forced to take an $8 billion emergency loan from the IMF and sell off national assets to address a crippling shortage of foreign currency.
In response to the crisis, the government has responded with several rounds of wage hikes and more generous pension and subsidies payouts.
