Egypt extends emergency law for 2 months

Egypt's interim president on Thursday extended a nationwide state of emergency for two more months, citing continued security concerns, as a senior Egyptian official warned of more terrorist attacks in the wake of a failed assassination attempt against the interior minister and suicide bombings in the Sinai Peninsula.

The nearly month-old state of emergency, which is due to expire within days, preserves greater powers for security forces amid a crackdown on supporters of ousted President Mohammed Morsi and increasing violence by Islamic militants. It was first declared in mid-August after authorities cleared two protest encampments held by Morsi supporters, unleashing violence that claimed the lives of nearly 1,000 in subsequent days.

Ever since, a nighttime curfew has also been in effect in much of the country. The interim government will decide separately on whether to continue the curfew. Interim Prime Minister Hazem el-Beblawi has said the curfew, now lasting for 7 hours most nights, would likely be eased.

The government Thursday announced new measures aimed at easing an economic crunch, in a sign it aims to show that it is tackling the nation's problems even amid the exceptional security conditions.

The measures included relief for low-income families from school expenditures and reduction in public transportation costs. They also included an injection of $ 3.1 billion budget support to be spent on infrastructure projects and employment generation, which the government says it hopes will increase economic growth from the current 2 percent to 3.5 percent.

The spending will largely be financed from money pledged by Gulf countries to Egypt after Morsi's July 3 ouster, the government said.