The International Monetary Fund (IMF) has expressed cautious optimism over Egypt’s ongoing economic reforms, even as the fifth and sixth program reviews face delays, highlighting the delicate balance between ambition and implementation in Cairo’s reform agenda.
On Monday, September 29, Egyptian Investment Minister Hassan El-Khatib met with IMF Resident Representative Alex Segura and Senior Economist Moshira Karara in Cairo to present the government’s strategy.
El-Khatib detailed a “studied and specific” set of measures aimed at monetary stability, tax reform, and expanding the role of the private sector.
“It is essential to connect trade and investment to bridge the trade deficit and position Egypt as an export center,” El-Khatib said, emphasising the government’s goal to boost competitiveness regionally and internationally. Officials outlined efforts to improve trade policy, support exporters, and create conditions for private sector growth.
IMF representatives welcomed the clarity of Egypt’s reform roadmap and expressed optimism about its medium-term impact. They stressed, however, that success would depend on fully implementing structural reforms and the gradual disengagement of the state from certain economic sectors.
The delay in the fifth and sixth reviews, initially planned separately, has led the IMF to combine them and postpone their conclusion until the end of 2025. The Fund indicated that this would allow Cairo additional time to advance privatisation policies and diversify public assets.
Julie Kozack, IMF Communications Director, highlighted in July that Egypt had fallen behind on key commitments, particularly regarding state ownership and asset management. A mission from the IMF is expected in Cairo in the coming months to evaluate progress and determine future disbursements.
If Cairo meets the conditions set by the Fund, it could receive two new tranches of financing totaling $2.4 billion, contributing to an overall $8 billion program. The most recent review in March led to the disbursement of around $1.2 billion.
For Egypt, these negotiations represent a critical juncture: advancing reforms promises economic resilience and growth, but delays underline the ongoing challenge of aligning ambitious policy goals with practical execution in a complex economic landscape.
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