{"id":695408,"date":"2026-04-22T00:00:00","date_gmt":"2026-04-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=695408"},"modified":"2026-04-22T03:42:02","modified_gmt":"2026-04-22T03:42:02","slug":"egypts-pm-signals-hes-going-to-hold-the-line-on-economic-reforms-despite-fallout-from-the-war-in-the-gulf","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/04\/22\/egypts-pm-signals-hes-going-to-hold-the-line-on-economic-reforms-despite-fallout-from-the-war-in-the-gulf\/","title":{"rendered":"Egypt\u2019s PM signals he\u2019s going to hold the line on economic reforms despite fallout from the war in the Gulf"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>We\u2019re doing a lot of \u201creading of coffee grounds\u201d this morning on what is otherwise a fairly milquetoast news day: The economy took center stage as the PM addressed parliament yesterday \u2014 and the two biggest banks in the land unexpectedly hiked interest rates on three-year certificates of deposit.<\/p>\n

<\/a> Up first: Prime Minister Mostafa Madbouly addressed the House of <\/strong>Representatives yesterday<\/strong> on the fallout from the conflict in Iran, which continues to weigh on economies across the region. <\/p>\n

Madbouly\u2019s message was one part reality check, one part greatest hits, and two parts <\/strong>repackaging: <\/strong>On the reality check side of the house, he signaled that Cabinet is bracing for what could be an \u201cextended crisis,\u201d warning that the economic impact of the war in the Gulf is \u201clikely to persist at least until the end of this year\u201d even if the conflict were to end soon. It\u2019s not what any of us wanted to hear, but it\u2019s refreshing that the views of the private sector and of the state are roughly in sync \u2014 with each other, and with reality.<\/p>\n

It\u2019s costing a heck of a lot more to generate power<\/strong>, the PM noted, and tourism is taking a hit. The fiscal toll of the war, he said, has been heavy. <\/p>\n

The greatest hits, part 1: <\/strong>The PM took something of a quiet victory lap, pointing out that the economy\u2019s resilience in the face of the crisis \u2014 the EGP serving as a shock absorber, an inflation-targeting monetary policy, record reserves, etc., etc. \u2014 are the result of tough economic reforms on which his government has stayed the course. Expect more of the same, Madbouly suggested. <\/p>\n

The greatest hits, part 2: <\/strong>The Oil Ministry\u2019s 18-month-long campaign to re-engage with Big Oil also got a nod, with Madbouly telling MPs that we\u2019ll have fully settled by June the arrears we owe international oil companies. He suggested there will be \u201cmore positive news\u201d from the industry soon, signaling that energy security could get a welcome bump as new assets come into production. <\/p>\n

The repackaging: <\/strong>The PM framed long-term trends and already-locked-in budget decisions as being key elements of his government\u2019s response to the crisis: <\/p>\n