The Egyptian cabinet has endorsed a multi-faceted plan for the oil sector, the goal of which is increasing Egypt's resources of foreign exchange. It includes benefiting from new gas prices, expanding the volume of exported liquified gas and enlarging the investment base in fertilizer, petrochemical and butane gas projects.
The cabinet also reviewed four reports on economic conditions, concerning economic activity, the budget estimates for fiscal 2001/2002, the development of non-petroleum industrial exports and the export of services.
The report on economic conditions indicated that that the Egyptian economy had been gaining in strength over recent months, with both the volume of sales by larger companies and revenues increasing significantly.
The report on the 2001/2002 estimated a deficit of $267 million, compared to $398 million the previous fiscal year. The new budget is expected to show a surplus of $564 million in the balance of current operations, against a surplus of $68 million the previous year.
Cabinet members stressed the need to maintain the general foreign currency reserve, which amounts to $15 billion, and indeed to raise it to $17 billion. The cabinet also called for policies to ensure the stability of the exchange rate of the Egyptian pound against foreign currencies.
Prime Minister Atef Ebeid reported on a decision to allocate EP 400 million to modernize the infrastructure of exports and to concentrate on the export of textiles, clothing, food products, construction materials, chemical materials, iron and steel, pharmaceuticals and electrical components. – (MENA Report)
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