An IMF mission in Cairo, conducting the fifth and sixth reviews of Egypt's Extended Fund Facility programme, has commended substantial progress in investment and trade reforms. The mission affirmed that Egypt's economic vision has become "clearer and more coherent", noting recent measures show the state's commitment to restoring confidence and attracting high value-added investments. The delegation met with Minister of Investment and Foreign Trade Hassan El-Khatib, who expressed optimism that the economy "continues to move in the right direction".
The mission's meetings with Minister Hassan El-Khatib focused on key economic developments alongside ongoing financial, institutional, and trade reforms. El-Khatib expressed optimism about the review process, stressing that the economy "continues to move in the right direction" and many indicators are performing better than anticipated under the IMF-supported programme. He added that the government is advancing a clear and disciplined reform agenda to uphold macroeconomic stability while expanding the private sector's role, with a focus on improving the investment climate and trade system efficiency as pillars of sustainable growth.
The minister highlighted Egypt's adoption of a more open and effective trade policy to boost productive capacity, expand market access, and deepen trade-investment integration. This, he said, will support Egypt's ambition to become a regional hub for exports and supply chains, reduce the trade deficit, and increase value added of locally produced goods. El-Khatib also outlined progress in digital transformation to enhance the business environment, including digital platforms for licensing and economic activities that streamline procedures, boost transparency, and improve administrative efficiency.
He reiterated the government's commitment to reforms simplifying procedures, reducing non-tax burdens, and enhancing transparency to create a stable, attractive investment environment and provide businesses with planning clarity. IMF officials stated discussions are progressing positively, expressing strong appreciation for the reform pace and business climate improvements, which support optimistic expectations for the current reviews' outcomes.
In a related meeting, Planning Minister Rania Al-Mashat informed the mission that Egypt forecasts at least 5% economic growth by the fiscal year's end, backed by ongoing structural reforms. She reported GDP growth of 5.3% in the first quarter, exceeding expectations, due to industrial production gains in vehicles, textiles, and ready-made garments, signaling a shift to high-productivity tradable sectors. Al-Mashat noted adherence to a EGP 1trn public investment ceiling last fiscal year, which opened avenues for more private-sector investments, and the establishment of a State-Owned Enterprises Unit to maximize asset value under the State Ownership Policy.