IMF mission chief lauds economic reforms in Egypt

International Monetary Fund (IMF) mission chief for Egypt Chris Jarvis has voiced strong support for Cairo's economic reform program. 

Measures taken by the Egyptian government, such as increasing the prices of fuel and electricity and imposing the value-added tax, should have a positive impact on the budget, Jarvis said in statements to MENA on Saturday. 

He expected such measures to help achieve initial surplus in the budget of the Egyptian government for the first time in 10 years. 

This would be an important achievement, Jarvis noted. 

Upping the prices of fuel and electricity is part of an Egyptian strategy to reduce energy subsidy so that the government could secure bigger resources to better fund education and social protection programs, Jarvis believes. 

The IMF expects the Egyptian government to increase spending on social protection programs, Jarvis said, adding that further action is needed to also achieve tax reform. 

Jarvis hailed as "good" Egypt's new investment law, hoping it would contribute to improving the investment climate in the country.