Experts considered that Mostafa Madbouly, the prime minister of Sisi’s government, is completely avoiding announcing the economic collapse that Egypt is going through, after he said during a press conference in the Council of Ministers on Wednesday, December 7, that “violent interventions lead to the disappearance of goods or some merchants’ concealment of goods, so we intervene with a sensitive balance.”
He claimed that the state is fighting this and is working to intensify control over the markets through the Consumer Protection Agency and the Ministries of Interior and Supply, forgetting that it is not only the food commodities whose prices have increased, but also iron, aluminum, gas, gold and all imported commodities, including wheat, soy and yellow corn.
Madbouly evaded the responsibility of the government and its concerned agencies for monitoring prices and controlling markets, when he appealed to citizens to report any exaggeration on the part of merchants in the prices of commodities, saying, “We ask the citizen to help us.”
Failing projects continue
Commenting on Madbouly’s announcement that his government will continue to work on failure projects such as the capital and administrative and holding the first government meeting of them, economic analyst Abdelnabi Abdelmutallab said, “I do not agree to stopping work on major national projects, but in response to the Prime Minister’s state, if stopping spending on capital projects will harm With the interests of its workers and their families, who may reach five million Egyptian citizens, I believe that the continuation of work on this project will harm a larger number of Egyptians, whose number may reach 80 million Egyptian citizens, and may lead to depriving future generations of education and health services.
He added, through his account (Abdelnabi Abdelmuttalb), that “the lack of transparency in the government’s plan to deal with the dollar crisis allowed some to unleash the pricing of their commodities at unacceptable numbers for the dollar against the Egyptian pound.”
Al-Akhbar journalist described the situation in Egypt as ambiguous, and said, “The ambiguity of the state’s position contributed to the confusion of the Egyptian market, and things returned to the period of instability that the Egyptian economy witnessed in the second half of the nineties, and dealing with the dollar problem requires clear, written and announced transparent policies.”
And he considered that “ambiguity increases the intensity of speculation on the Egyptian pound, and helps the dollar transform from a medium of exchange into a store of value, and this behavior greatly harms the Egyptian economy.”
The technocrat expert, Mahmoud Wahba, revealed that a number of challenges are not announced by the government, but are a reality, such as bankruptcy and currency shortages, which were a stage that has ended and has not been addressed.
And he considered that bankruptcy due to the lack of hard currency was the most important indicator of the Egyptian economy from January 1957 to September 2022, explaining that it is linked to the military governments, “since Abdel Nasser, followed by Sadat and Mubarak, then Sisi, and everyone neglected this indicator, although it bequeaths its results to those who follow it instead of treating it.”
Regarding the projection of this indicator on today’s reality, he said, “Here is the Prime Minister Madbouly talking about him inattentively after the time has passed, but he does not recognize its results, which is bankruptcy, and he is on the outskirts. Rather, this now is the challenge.”
And he added that the signs of this indicator are represented in a chronic deficit in the trade balance = a chronic deficit in hard currency resources = do not borrow a single dollar or anything else in hard currency because you will not be able to repay it, and if you borrow, expect bankruptcy no matter how long it takes.
And he asked for a request that he had previously repeated, which is specific plans to get out of bankruptcy, so he said, “His Excellency Prime Minister 1- What is the challenge facing Egypt? Numbers please, not words sent 2- What is the plan to confront it until 6/30/2023 with numbers and dates, please?” 3- What are the traditional ways to bring in hard currency, and in return, what are the non-traditional ways?
The German Foreign Trade and Investment Corporation estimated that the total foreign and domestic debt this year will reach about 94% of the gross domestic product, which is more than $400 billion.
And from 2018 to 2022, about 55 billion dollars left Egypt, starting with the exit of 15 billion dollars during the emerging market crisis in 2018, then nearly 20 billion dollars due to the global pandemic during 2020, while the Russian-Ukrainian war caused the exit of 20 billion dollars from The country during 2022, according to the Minister of Finance in the government of Mustafa Madbouly Muhammad Maait.
Source: بوابة الحرية والعدالة by fj-p.com.
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