As Egypt stands at the crossroads of economic transformation, the Institute of National Planning (INP) spearheads a groundbreaking initiative to reshape the nation’s fiscal terrain. Without the confines of an author’s identity, this exclusive revelation takes center stage.
In an unprecedented move, Ashraf Arabi, the visionary President of INP, unveiled the institute’s meticulous study on a unified public debt law for Egypt. This revolutionary measure, a cornerstone for responsible debt governance, mirrors global practices adopted by leading nations.
Arabi, in an exclusive discussion with Daily News Egypt, emphasized the critical need for a unified public debt law to empower the Egyptian Parliament with governance and oversight capabilities over local debt processes. Asserting the absence of such legislation in Egypt, Arabi stressed that this law would usher in a new era of meticulous debt management, curbing the unrestrained issuance of treasury bonds, a prevalent form of debt.
The potential benefits for Egypt are substantial. If enacted, the law promises to streamline the borrowing process, instituting clear standards and criteria for projects seeking financial backing. Of paramount importance is the focus on generating foreign currency, a strategic move for Egypt’s economic resilience.
Having submitted the comprehensive study to the Egyptian Parliament and relevant governmental bodies, Arabi highlighted the decisive role of the government’s executive decision in materializing this transformative legislation.
In tandem with this groundbreaking initiative, the INP recently unveiled a research paper addressing the sustainability of government debt. This comprehensive document advocates for essential measures and recommendations aimed at maintaining and reducing government debt to desired levels.
The research paper, scrutinized by Daily News Egypt, advocates transparency and disclosure rules to distinguish between government and non-government debt. It calls for heightened efficiency in coordinating fiscal and monetary policies to ensure the sustainability and reduction of government debt.
Arabi accentuated the pivotal role of the debt service ratio for commodity and service exports as a crucial indicator for measuring debt levels in Egypt. Monitoring this ratio becomes an early warning system, and Arabi stressed the urgency of radical structural reforms to increase dollar inflows.
Highlighting three core axes — augmenting production, boosting exports, and investing in human resources — Arabi commended the Egyptian government’s strides in these directions, with accelerated plans slated for implementation in 2024. In this epochal juncture, the INP’s unwavering commitment to reshape Egypt’s fiscal future stands as a testament to visionary leadership and forward-thinking economic strategies.
