Egypt Unveils $4 Billion Support Package Ahead of Ramadan
Egypt recently announced a $4 billion social support package to aid vulnerable households ahead of Ramadan. The measures include a 16% increase in the minimum wage for public-sector workers, higher pensions, and additional financial support for low-income families and farmers, reflecting the government’s response to a multi-year financial crisis exacerbated by rising inflation and economic instability.
On Wednesday, Egypt announced a significant social support package amounting to EGP 200 billion (approximately $4 billion) aimed at assisting vulnerable households amid rising living costs as Ramadan approaches. This initiative includes an increase in the minimum wage for public-sector employees, expanded cash assistance for low-income families, and enhanced pension benefits, all crucial during this period of family gatherings and communal feasting.
The government’s announcement follows a commitment made by Prime Minister Mostafa Madbouly to bolster financial support for citizens during the holy month. The country has been facing a protracted financial crisis characterized by unprecedented inflation levels, making basic necessities increasingly unaffordable for many. There is hope that recent agreements with the International Monetary Fund (IMF) will contribute to economic stabilization.
The newly introduced measures include a 16% increase in the minimum wage for public-sector workers and civil servants, raising it to EGP 7,000 (around $138). Additionally, pension payouts will rise by 15%, while the financial assistance provided to participants in the Takaful and Karama cash assistance program, initiated by the World Bank, will be elevated by 25%.
During Ramadan and Eid Al-Fitr, ration card-holders will receive extra financial support, amounting to either EGP 125 ($2.5) or EGP 250 ($5), determined by family size. The government will also allocate EGP 10 billion towards a new economic empowerment fund and provide an additional EGP 6 billion (approximately $118.5 million) to assist farmers.
The crisis in the Egyptian economy, sparked by Russia’s invasion of Ukraine, compounded by disruptions in grain supplies and surging energy costs, has severely affected the nation. Over the past year, the Egyptian pound has devalued by nearly 70% against the dollar, leading to rampant inflation and pushing many citizens deeper into poverty. To mitigate these issues, the government resorted to an $8 billion emergency loan from the IMF and the sale of national assets to resolve a significant foreign currency shortage.
In conclusion, the $4 billion social support package announced by the Egyptian government represents a crucial response to the financial hardships faced by many citizens, especially as Ramadan approaches. With measures including wage increases, enhanced pensions, and targeted cash assistance, the government’s aim is to alleviate the burden of rising costs on vulnerable households. This initiative highlights the broader economic challenges Egypt is experiencing and the government’s ongoing efforts to stabilize the economy during these difficult times.
Original Source: www.newarab.com
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