President Abdel Fattah al-Sisi has warned that Egypt may be forced to re-evaluate its $8 billion agreement with the International Monetary Fund (IMF) if international financial institutions do not consider the serious regional challenges currently facing the country.
Speaking at a conference on Sunday, President Sisi emphasized that Egypt has been implementing the IMF-backed reforms under extremely difficult regional and global conditions. These reforms, which were signed in March, include reducing subsidies on key goods such as fuel, electricity, and food staples, as well as allowing the Egyptian pound to float freely. These measures have led to growing public dissatisfaction.
In the latest move, Egypt raised fuel prices for the third time this year on Friday, with increases ranging from 11% to 17%. This follows a 300% hike in subsidized bread prices in June, and Prime Minister Mostafa Madbouly’s announcement that fuel prices will continue to rise gradually through 2025.
President Sisi pointed out that Egypt has lost between $6 billion and $7 billion in revenue over the past seven to ten months, a situation likely to persist for another year. He linked part of these losses to disruptions in Red Sea shipping caused by Yemen’s Houthi rebels, who are targeting shipping lanes in support of Palestinians in Gaza. As a result, Suez Canal revenues dropped from $2.54 billion in the second quarter last year to $870 million this year.
“If this situation becomes unbearable for the people, and public opinion is seriously impacted, we must reconsider our position on the agreement,” Sisi said.
Egyptian officials are attending the IMF and World Bank annual meetings in Washington this week, where they are expected to hold talks on these challenges with international financial officials.