Prime Minister Mostafa Madbouly announced on Monday that Egypt will raise the national minimum wage and implement government spending cuts to mitigate the domestic economic impact of regional military escalation. The decisions came during a meeting of the Central Crisis Management Committee, chaired by Madbouly, to monitor repercussions from US-Israeli operations in Iran and broader regional developments.
The Central Crisis Management Committee met on Monday under the chairmanship of Prime Minister Mostafa Madbouly to assess the economic repercussions of regional military escalation. The committee includes Deputy Prime Minister for Economic Affairs Hussein Issa, Central Bank Governor Hassan Abdalla, and the ministers of finance, tourism, supply, petroleum, investment, information, and planning, alongside Foreign Minister Badr Abdelatty. It will convene periodically to track developments.
Madbouly expressed Egypt's strong condemnation of repeated Iranian attacks on Arab Gulf states, Jordan, and Iraq, affirming full solidarity with sister Arab nations and demanding an immediate halt to aggressions and rejection of any sovereignty violations. He stated that Arab national security is an indivisible part of Egyptian national security.
To address the economic fallout, the committee approved measures to rationalize government spending, including cancellation of government events, reduction in official foreign travel, and decreases in training courses, according to Cabinet spokesperson Mohamed El-Homsany. The plan also involves strategies for managing road lighting and billboard electricity, reviewing fuel consumption across sectors, and accelerating mass transit operations. It encourages vehicle conversion to natural gas, electric vehicle use, and reduction in non-essential finished goods imports.
Madbouly emphasized social protection for low-income citizens, noting upcoming announcements of new measures, including a minimum wage increase, in addition to recently announced social packages. The meeting discussed the conflict's impact on tourism and petroleum sectors, with Petroleum Minister Karim Badawi reporting significant rises in petroleum product and gas prices, increased transport costs, and closures of several regional oil fields.
Officials were directed to maintain regular payments to international oil companies to encourage exploration and production, accelerate the government's "offerings" program for selling stakes in state-owned assets, and boost foreign currency resources through investment attraction and private sector enhancement. The committee reviewed various ministry-prepared scenarios for potential market disruptions, with Madbouly reiterating the need to preserve economic stability amid external challenges.