Reports confirm stability of economic situation and market improvement
The Cabinet met Wednesday under Prime Minister Atef Ebeid, reviewed the achievements of each ministry in the past period and preparing for the coming stage which begins with a meeting to be held under the chairmanship of President Hosni Mubarak to discuss the performance of the government in accordance with the assignments given by the President and in the light of the program presented by the government before the President and the People's Assembly.
Minister of Information Safwat Al Sherif said that the Cabinet reviewed working papers related to the evaluation of government performance in all sectors of national action of the state, both the production and services sectors.
Foremost among the issues which were evaluated and discussed were economic conditions and private services projects together with a number of important issues.
The Minister of Information said that discussion of these issues and working papers and their evaluation resulted in several important conclusions.
As regards economic and social conditions, it became clear that there was efficient execution of the general budget during the financial year which ended on June 30,2001 and also during July and August.
There were indications of the beginning of improvement in market conditions as result of seasonal demand during the summer months.
Economic situation stable: Minister of Information Safwat Al Sherif said that discussions of the Council of Ministers showed that economic conditions were stable as represented in the exchange rate and its repercussions on other economic aspects.
It also showed an increase in the rate of operation of factories in addition to an increase in electricity consumption in the production sectors by 7 per cent in addition to an increase in the use of the main oil and auxiliary products and gas by 8 per cent in the production sectors.
The Minister of Information said that among indicators of improvement of economic conditions was an increase in the return of tourist services by 1.8 billion dollars compared with the same period last year (14 months) in addition to the success of regulating public expenditure and not exceeding allocations and the beginning of a comparative movement in the real estate market which was stagnant in the past period as a result of an accumulated surplus.
Imports dropped
The Minister of Information said that among these indicators was the restructuring of a group of economic and public organizations and there was an evident reduction in imports and an increase in exports.
One of the reasons for the drop in imports was the accumulated stores of some imports as shown in statistics and a return, in the consumption of cement and iron, to higher rates which reflect the beginning of regaining activity in building and construction and also expediting the execution of schools projects and developing villages and districts as a result of the allocations made for this purpose and the beginning of planning what is left of haphazard areas, health complexes, new roads, airports and housing projects.
Minister of Information Safwat Al Sherif said that reports, reviewed at the Cabinet meeting on the foreign currency market, showed a clear improvement in the year ending in June 2001 in both the trade balance and the balance of current operations from 1.2 billion dollars last year to about 850 million dollars.
Reports showed that quiet was regained in the foreign currency market and industrial and trade chamber were committed to supporting the new exchange rate system.
Minister of Information Safwat Al Sherif said that the Cabinet reviewed conditions of the home market as regards internal trade and supply commodities.
Minister of Information Safwat Al Sherif said that the cabinet reviewed conditions of the home market as regards internal trade and supply commodities.
A report on this market, supported by figures and statistics, indicate the beginning of a clear improvement in some groups of commodities particularly in the field of agriculture products and food, textile and leather industries, stationery and paper and furniture.
The report of internal trade showed that the volume of sales at exhibitions which were held -- youth and sports exhibitions and exhibitions of local development and the tourism and shopping festival and the exhibition of school requirements realized high rates.
The report said that demand began an upward movement on a number of products such as building materials, durable goods and gold items -- but they have not returned to their natural levels.
Sherif said that the report on internal trade referred to positive indicators such as abandoning sale of some goods at prices less than cost and a big drop in bankruptcy cases as shown in statements provided by the trade branches in the various governorates in addition to reports of the offices of supply commodities at wholesale markets and the new data base which was set up at the Ministry of Trade which issues weekly bulletins on wholesale and retail prices of various commodities groups.
The Minister of Information said that reports of the ministers of economy, finance and planning showed beginning of repaying debts to suppliers after they were defined, in collaboration with ministries and organizations, up to June 30,2001, and the beginning of issuing monthly installments of investments of the government body to all ministries and public organizations.
The Minister of Information said that in the light of these discussions, the reports discussed will be referred, in detail, to President Mubarak at the meeting which will be held under his chairmanship shortly.
Sherif said the cabinet stressed several decisions, priorities and recommendations as regards action in the coming stage, foremost among which are:
1- To continue finance policies which realise balance between resources and expenditure in order to control budget deficit and not to exceed allocations.
2- Full commitment to decisions of the council of ministers as regards use of local products and not to use foreign products if specifications are found in local products. This principle should be strictly adhered to.
3- To provide additional sources to the resources mentioned in the general State budget. A ministerial group of the ministers of economy, planning, finance, industry and trade will meet with the aim of providing allocations to provide more opportunities to rehabilitate youth and extend loans to increase chances of employment in the private and provide additional resources to develop villages and districts.
4- To provide additional allocations to upgrade pre-university education and at colleges and research centres and allocating 10 per cent of these allocations to reach the higher standard in the coming years.
5- To develop basic services for producers to help them increase exports.
6- To provide additional allocations to contribute to setting up institutions of technological development.
7- To expedite execution of programmes to modernize industry.
8- To expedite development of discovered natural resources of natural gas in order to realize a return for the general state budget to contribute to providing these allocations.
9- To offer sale tranches of the shares of the companies of communications, electricity and distribution of oil products within 15 per cent of the shares of communications, 15 per cent of the shares of the electricity distribution companies and 40 per cent of the shares of the oil products distribution companies.
10- To improve conditions of the banking system as regards its ability to provide credit of the private sector in a manner which realizes more investments for production sectors and increasing job opportunities.
11- Improvement of services provided to the public and to continue to develop the apparatus of local government.
Minister of Information Safwat Al Sherif said the Minister of Supply presented a report saying that the situation as regards strategic commodities is reassuring. Supply commodities are available as follows:
2 million tons of wheat 1 million tons of sugar 73,000 tons of edible oil
These quantities are reassuring and meet the country's needs for six months.
New resources will be added when the new production begins.
There has been a noticeable improvement in economic conditions and the natural recycling has been regained in Egyptian economy which is based on sound, healthy and solid foundations.
What took place was the result of its being affected by the movement of world trade.
The Minister of Information said that the Cabinet is keen to see the success of the experiment of private universities through the provision of a distinguished educational level placing the education process in the first place away from profitability so that graduates of these universities may find suitable job opportunities at home and abroad.
Cabinet reviews foreign ministry report on Mideast situation
The Cabinet reviewed at a meeting Wednesday under Prime Minister Dr. Atef Ebeid a report by the Foreign Ministry on conditions in the Middle East area.
Minister of Information Safwat A1 Sherif said the Cabinet stressed Egypt's clear position as announced by President Hosni Mubarak that conditions in the Middle East area represent an acute crisis which threatens the peace process in the area and that Israel should stop using military force and return at once to the negotiating table with the Palestinians within the framework of respect of international legitimacy and Security Council resolutions and the land-for-peace principle and respect of the rights of the Palestinian people in full.
The Minister of Information said that President Mubarak stressed that it was important the negotiations begin between the two parties in order to save the situation without pre-conditions because the condition of stopping violence completely is an obstacle which could not be met as a condition to begin negotiations and stem bloodshed in occupied territories.
The Minister of Information said that the Cabinet reviewed the results of efforts being exerted by President Mubarak at the Arab, regional and international levels to put an end to Israeli policies based on aggression on the Palestinian people.
The Foreign Minister referred to results of talks which took place between President Mubarak, Ring Abdullah of Jordan and Syrian President Bashar A1 Assad and the recent talks with Palestinian Leader Yasser Arafat and the Saudi Crown Prince and the message conveyed to President Mubarak by the Saudi Foreign Minister Emir Saud A1 Faisal.
The Foreign Minister also referred to the results of contacts made by President Mubarak with the United States and a number of European leaders in addition to the talks which took place with the General Commissioner of the European Union for the peace process which all aim at putting an end to the deteriorating conditions in the area and stop acts of repression, suppression and assassinations to which the Palestinian people are subjected.
The Foreign Minister reported on the contacts he made with the foreign ministers of Arab, African and European countries.
He stressed that the focus of these contacts was the call made by President Mubarak to the international community to shoulder its responsibility to stop aggression and return to the negotiating table on the basis of the terms of reference of international legitimacy.
The Foreign Minister presented a report on the Durban Antiracist Conference and said that efforts made by Egypt in cooperation with Arab, Islamic and African delegations with the aim of making the conference stress that it was important that Israel should stop its practices and give a chance to resume negotiations.
The Foreign Minister said that the withdrawal of the United States and Israel from the conference did not affect the decision of the international community taking part in the conference with 140 countries to continue the conference and ensure its success.
