Egypt Introduces $4 Billion Support Package Ahead of Ramadan

Egypt has unveiled a $4 billion social support package to assist low-income households amid rising living costs before Ramadan. Key features include a 16% increase in minimum wage, enhanced pension payouts, and additional cash support for vulnerable families. The initiative is part of broader efforts to address severe inflation and economic challenges faced by the country in recent years.

On Wednesday, Egypt announced a significant social support package amounting to EGP 200 billion (approximately $4 billion) aimed at assisting vulnerable households in managing escalating living costs ahead of Ramadan. The initiative includes an increase in the minimum wage for public-sector employees, enhancements in cash support for low-income families, and elevated pension payouts to alleviate economic pressures during this important period of family gatherings and feasts.

This announcement follows the commitment made by Prime Minister Mostafa Madbouly to bolster financial support for citizens during Ramadan. The country has been grappling with a prolonged financial crisis characterized by soaring inflation, which has rendered essential goods unaffordable for many families. Recent agreements with the International Monetary Fund (IMF) offer some hope for economic stabilization.

Key measures of the new support package include a 16% increase in the minimum wage for public-sector workers to EGP 7,000 ($138), a 15% rise in pension payouts, and a 25% increase in support for beneficiaries of the Takaful and Karama programs, which are cash assistance initiatives administered by the World Bank. Ration card holders will also receive additional financial assistance during Ramadan, with two payments scheduled for the holy month and Eid Al-Fitr.

These payments will be valued at either EGP 125 ($2.5) or EGP 250 ($5), contingent on family size. Furthermore, the government has earmarked EGP 10 billion for a new economic empowerment fund and plans to allocate an additional EGP 6 billion ($118.5 million) in support for farmers. The economic challenges faced by Egypt stem from the impact of Russia’s invasion of Ukraine, which severely disrupted grain supplies and led to significant increases in energy costs.

Since 2022, the Egyptian pound has depreciated by nearly 70% against the dollar, resulting in rampant inflation that has impoverished numerous households. In reaction to this crisis, the government sought an $8 billion emergency loan from the IMF and resorted to selling national assets to remedy a dire foreign currency shortage. In response to these challenges, multiple rounds of wage hikes and enhanced pension and subsidy payouts have been implemented by the government.

In summary, Egypt has introduced a comprehensive $4 billion support package to aid its citizens facing rising living costs as Ramadan approaches. The measures include substantial increases in wages, pensions, and targeted assistance for vulnerable households, which reflect the government’s ongoing efforts to address the economic hardships exacerbated by a multi-year crisis. These initiatives aim to provide relief during a time when family gatherings and celebrations are customary, fostering hope for improved economic conditions.

Original Source: www.newarab.com