Egypt Announces $4 Billion Support Package Ahead of Ramadan

Egypt has announced a $4 billion social support package to assist vulnerable households ahead of Ramadan, including wage increases, enhanced pension payouts, and additional subsidies for low-income families and farmers. This initiative aims to alleviate the financial challenges faced by citizens during the holy month amid ongoing economic difficulties.

On Wednesday, Egypt unveiled a substantial EGP 200 billion (approximately $4 billion) social support package aimed at assisting vulnerable households during the upcoming Ramadan. This initiative is crucial, as it is a period characterized by family gatherings and celebrations, and it seeks to alleviate the financial pressures caused by rising living costs. Prime Minister Mostafa Madbouly previously pledged additional financial aid to support citizens during this season.

The newly announced measures include a 16% increase in the minimum wage for public-sector workers, raising it to EGP 7,000 ($138). Moreover, pension benefits will be augmented by 15%, and financial assistance for participating families of the Takaful and Karama programs, which are supported by the World Bank, will see a 25% increase. These adjustments are designed to elevate the living standards of the most vulnerable populations.

In addition to wage and pension increases, the government plans to distribute extra support to ration card holders throughout Ramadan. These recipients will receive two additional payments during the holy month and during Eid Al-Fitr, with each payment varying between EGP 125 ($2.5) and EGP 250 ($5), depending on family size.

Furthermore, the Egyptian government will allocate EGP 10 billion towards a new economic empowerment fund and provide an additional EGP 6 billion ($118.5 million) in financial assistance for farmers. These steps illustrate the government’s commitment to improving economic resilience amid ongoing financial challenges.

The economic crisis faced by Egypt began in 2022, exacerbated by Russia’s invasion of Ukraine, which disrupted grain supplies and led to soaring energy costs. The Egyptian pound has devalued by nearly 70% against the dollar during this period, causing severe inflation, which has increased poverty levels across the nation. The government resorted to securing an $8 billion emergency loan from the IMF to navigate the crisis, leading to several rounds of wage hikes and increased subsidy payouts.

In summary, Egypt’s announcement of a $4 billion social support package represents a strategic effort to assist vulnerable households ahead of Ramadan. Key components include wage increases, enhanced pension payouts, and additional support for low-income families and farmers. These measures aim to alleviate financial burdens amidst an ongoing economic crisis exacerbated by external global factors.

Original Source: www.newarab.com