Subir Lall, head of the IMF’s Egypt mission, and Reza Bakir, senior resident representative for Egypt, were among the attendees. Lipton said that depending more on energy subsidies led to three major destructive effects: exhausting state revenues, overstatement of consumption, and a big portion of government expenditure being spent that could have otherwise gone to education and health. “The government understood that when you buy a certain commodity, you will have to pay for it,” said Lipton, noting that paying the real prices will help support the poorest members of society. The Egyptian Armed Forces was a guarantor of the country’s security, as it executed several infrastructure projects, noted Lipton. The government should encourage the private sector’s investments in industry and agriculture, while the authorities should concentrate on security, solidity, and infrastructure projects, said Lipton.

Source: Daily News Egypt May 07, 2018 17:37 UTC