Egypt to slow down state projects for two months amid Iran war

Egypt will slow down large state projects that involve high fuel and diesel consumption for at least two months, while fuel allocations for all government vehicles will be cut by 30 percent, Prime Minister Mostafa Madbouly said.

Madbouly also said that both the public and the private sectors, with the exception of services and manufacturing sectors, will work remotely on every Sunday of April. The measure could be extended to an additional day per week or prolonged for further months if the war continues.

The move is part of broader measures to cope with the economic fallout from the Iran war, which has driven up energy costs and strained public finances.

Although Egypt is not directly involved in the conflict, it has been heavily affected, particularly in the energy sector, as it depends on imported fuel. Costs have ballooned with the disruption of oil and gas production and trade across the Middle East.

The government has already raised fuel prices and the price of public transport.

Yet, Madbouly stressed that these measures are temporary, adding that the government is working to help the citizens and is discussing an increase in the minimum wage and increased allocations for healthcare  and education in the next fiscal year.

Meanwhile, debt servicing costs, which typically consume the majority of Egypt’s budget, are set to rise by only five percent in the next fiscal year that begins in July, finance minister  Ahmed Kouchouk said.