Maait: Egypt’s IMF Program Paved Way for Economic Reform

Mohamed Maait, Executive Director at the International Monetary Fund (IMF), said Egypt’s economic reform program with the Fund has played a pivotal role in correcting structural imbalances and laying the groundwork for sustainable growth, citing international praise for the country’s growth performance and exchange rate flexibility.

In an exclusive interview aired Saturday evening on Egypt’s Sada El-Balad television channel, Maait said the IMF has acknowledged that Egypt’s economic recovery remains on track, despite a series of severe external shocks that hit the economy in recent years. These included the COVID-19 pandemic, global inflationary waves, the Russia–Ukraine war, and the ongoing conflict in Gaza.

Maait noted that Egypt went through a particularly difficult period following the pandemic, with the most challenging phases occurring in March 2022 and November 2024, when pressures on confidence intensified and remittances from Egyptians abroad were negatively affected. He explained that the restoration of trust between the state and citizens later contributed to a strong rebound in remittance inflows, which currently range between $40 billion and $45 billion annually.

He added that the global inflation surge had a direct impact on Egypt, as prices of key commodities such as oil, wheat, and food staples rose sharply. Maait stressed that turning to the IMF is typically a last-resort option for countries, used only to bridge financing gaps during exceptional circumstances.

According to Maait, the IMF-supported program helped unlock major national projects and correct numerous economic policies. He said the Fund’s most recent review of Egypt confirmed that the recovery is progressing well, highlighting exchange rate flexibility and an economic growth rate of 4.4%, achieved after the implementation of a package of reform measures.

Maait stated that the current IMF program is scheduled to conclude in December 2026, underscoring the importance of securing the country’s needs in line with annual population growth. This, he said, requires maintaining a strong foreign currency reserve position. Egypt’s reserves currently stand at about $51 billion, among the highest levels in the country’s history.

He emphasized that the Egyptian government has implemented large-scale projects in housing, electricity, roads, and transportation, as part of broader efforts to improve living standards and ensure a dignified life for citizens. Despite the burdens placed on households by the reform program, Maait said the return of confidence has helped stabilize the economy.

“Investor confidence has returned to the Egyptian economy,” Maait said, noting that the state focused on developing the infrastructure required to attract both local and foreign investment. As a result, Egypt is witnessing growing investor interest alongside rising remittances from abroad.

Addressing the issue of rising debt servicing costs, Maait explained that this was driven by multiple factors related to economic reform and exchange rate adjustments. He pointed out that interest payments stood at EGP 480 billion at the start of the reform program in 2016, while total spending reached EGP 4.7 trillion, revenues totaled EGP 3.1 trillion, and the fiscal deficit approached EGP 1.5 trillion.

Maait concluded that while the reform path has been demanding, it has helped restore stability, rebuild confidence, and position the Egyptian economy for more resilient growth in the years ahead.