Egypt Sees No Need for New IMF Programme After Current Deal Ends, PM Says

Egypt does not currently see a need to negotiate a new funding programme with the International Monetary Fund (IMF) after the conclusion of its existing agreement in December 2026, Prime Minister Mostafa Madbouly said on Thursday. 

Speaking during a cabinet press conference, Madbouly said the government believes there is no immediate requirement for another IMF-supported programme once the current Extended Fund Facility (EFF) arrangement expires in mid-December.

His remarks came as an IMF mission remains in Cairo to conduct the seventh review of Egypt’s EFF programme and the second review under the Resilience and Sustainability Facility (RSF). The reviews, expected to conclude on June 15, could unlock approximately $1.6bn in additional financing for Egypt.

Madbouly said discussions between IMF officials, the Central Bank of Egypt, and the Ministry of Finance were progressing positively.

"The talks are going well," he said, noting that the Fund is evaluating the pace of Egypt’s economic reforms amid ongoing regional challenges.

The IMF is also assessing the impact of the continuing conflict in the Middle East on Egypt’s economy and is expected to provide recommendations to support the country’s reform agenda.

The prime minister highlighted a series of measures aimed at boosting investment and economic growth in the coming fiscal year. Beginning July 1, the government will introduce new tax, customs, and real estate incentives designed to attract both domestic and foreign investors.

Madbouly said tax revenues have shown strong growth despite economic pressures. During the first nine months of fiscal year 2025/2026, tax revenues rose 28.7% year-on-year to EGP 1.85 trillion, representing 8.7% of gross domestic product (GDP). Over the first ten months of the fiscal year, revenues increased by 29.3% to EGP 2.21 trillion, equivalent to 10.4% of GDP.

Looking ahead, the government's fiscal year 2026/2027 budget targets a 27.6% increase in general revenues to EGP 4 trillion and economic growth of 5.4%, while continuing efforts to expand private-sector participation in the economy.

Madbouly also underscored plans to increase public spending on key social sectors. Funding for healthcare will rise by 30%, including around EGP 47.5bn allocated to support health insurance programmes, while education spending is set to increase by 20%.

The new budget will earmark EGP 90bn for programmes supporting economic activity, including exports, manufacturing, and entrepreneurship. Of that amount, approximately EGP 48bn will be allocated to export subsidy programmes for goods and services.

In addition, the government plans to introduce incentives to encourage the productive use of vacant land and unoccupied real estate units. New measures will also promote the installation of solar energy systems by households and factories, supporting Egypt’s transition toward renewable energy and diversifying electricity sources.

The measures form part of the government's broader strategy to strengthen economic resilience, stimulate investment, and sustain growth as Egypt continues implementing reforms under its IMF-backed programme.