Mubarak presses on with wide ranging economic issues
Egypt, Economics, 1/4/2000

President Hosni Mubarak Monday chaired two ministerial meetings on the economic situation, state budget, and oil finds at the presidential palace in Heliopolis.

He also listened to a number of reports submitted by Prime Minister Atef Ebeid and Cabinet members on upgrading economy and existing problems.

The president listened to reports on the monetary and financial policy, then on the state budget indicators, exportation policies, expanding the ownership base, and managing the business public sector, Information Minister Safwat Sherif said.

Mubarak asked the government to finish updating its programs to start an integrated monetary policy and economic policies that back the national economic stability, he said. These policies are also meant to cover the costs of development projects, attract direct investments, and uplift state resources besides controlling public spending and building a foundation to the exportation process, he added.

Sherif said President Mubarak affirmed the necessity of adhering to transparency and using certain data and information in dealing with the economic, monetary, and market forces. The President requested expanding the private sector, encouraging middle-age businessmen and investors, and modernizing financial management and monetary relations.

The Prime Minister's report submitted to the President showed that the foreign currency flux into the market is normal and the demand from banks to cover transactions abroad is met on a regular basis, the Information Minister said.

The hard Currency flow is expected to rise from the remittances of Egyptians working abroad, the improvement in the oil market, the navigational movement in the Suez canal and new policies to promote exports, he said.

The Information Minister said that steps were taken after the government reshuffle to rationalize the spending of foreign currency, and control spending in ministries and organizations.

The Finance Minister submitted a report on the government plan to update financial management and realize tax reform, Sherif said.

The Prime Minister referred to a study under preparation to gradually separate economic institutions from the state budget.

The government is also making a new policy in running the general debt to reduce burdens in payment, he said.

The President reviewed another report to enhance the buy, operate, own, and transfer (BOOT) system to attract more investors and standardize agreement rules, he said.

As regards the state budget, Ebeid said it will be complete by the end of February to be deliberated by the ministries before passing it to the Cabinet in march.

The budget of 2001 stands on depends on balancing revenues and spending, Sherif quoted the prime minister as saying.

President Mubarak, on his part, stressed the necessity of keeping deficit within target limits without influencing production, funds, or allocations given to fundamental services, Sherif said.

On exportation policies, Sherif quoted Ebeid as saying that these policies will be executed on four stages. The first stage concentrates on four outstanding commodities in agriculture, textiles, ready-made clothes and cotton. The government seeks to lay a foundation to serve the exportation industry through activating commodity and follow up councils, legal control and making contracts with specialized marketing companies in Europe and the US.

Mubarak called for introducing an entity to regulate exporter-government relationship. Petroleum Minister Sameh Fahmy submitted a report on the new oil funds and the future of oil and gas in Egypt. Fahmy announced the largest oil finds in the history of Egypt made by gigantic international companies in the deep waters of the Mediterranean Sea.
    According to the companies recent reports to the ministry, Egypt's oil reserves of crude oil rose to 8.2 billion from 3.7 billion barrels. The natural gas reserves also rose to 120 trillion.

President Mubarak directed that gas and its value added derivatives be used for internal industrial development and exports.

Previous Stories:
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