By: Mahmoud Salah El-Din, Ahmed Allam

Cairo - Mubasher: Egyptian finance minister Amr El-Garhy said that the cooperation programme with the International Monetary Fund (IMF) reflects the government’s commitment to the priorities set by the public budget.

The minister on Monday affirmed that the budget deficit is the top challenge facing the Egyptian economy after reaching 13% compared to 10% in the FY2010-2011.

El-Garhy’s comments were made on the sidelines of the Euromoney Egypt conference, where he said that the Egyptian government aims to reduce the budget deficit to 10% or less.

He added that the deficit has been reduced by 1.5% this year as part of the ongoing economic reform process.

The new value added tax (VAT) is mainly concerned with maintaining the quality of life for middle and low-income families through huge tax cuts for all the basic goods and services, the minister added.

The Egyptian minister also asserted that the country’s energy sector is in need of some major structural changes in order to cope with the global dynamics. The government is also working on boosting private sector contribution in energy, he noted.

Providing job opportunities is the main drive for economic growth, the minister said, adding that there is a need to improve the investment climate in Egypt to attract more foreign investments.

Translated by: Moslem Ali