Cabinet to issue ‘roadmap’ to economic recovery

Egypt’s newly formed government plans to announce an economic “roadmap” to govern the transitional period after President Mohamed Morsi’s ouster, said on Thursday Ashraf al-Araby, who has been retained as minister of international cooperation and planning after serving  in the same position in former Prime Minister Hesham Qandil's Cabinet.

Financial assistance from the Gulf that began flowing into the country after the appointment of interim President Adly Mansour earlier this month will make the transitional period “easy” for the government, the independent daily newspaper Al-Shorouk quoted Araby as saying. The Cabinet is keen on restarting the economy and attracting investment, he added.

However, the aid package is not an alternative to the long-awaited International Monetary Fund loan, Araby warned. Each government since former President Hosni Mubarak’s ouster in 2011 has attempted to negotiate the loan with the IMF. Araby expects talks with the IMF to resume once the domestic situation “stabilizes," Al-Shorouk reported.

“What is important is that we start structural reforms that the Egyptian economy needs,” Araby said.

Saudi Arabia, Kuwait and the United Arab Emirates have pledged a total of US$12 billion in loans and grants to Egypt, including fuel and crude shipments. The nation has been struggling to pay for strategic imports as net international reserves declined by more than 50 percent compared to their December 2010 level, and the Egyptian pound weakened.