Egypt caps public investment to bolster fiscal stability

Egypt’s Government has announced a ceiling of EGP 1.16 trillion for public investments in the 2025/2026 fiscal year, which began on 1 July 2025.

Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat made the announcement on Sunday, 28 September 2025, during a high-level meeting with World Bank Group officials.

The move is part of a broader fiscal strategy aimed at reinforcing budgetary discipline, reducing the deficit, and continuing the trajectory of lowering public debt.

Al-Mashat reiterated Egypt’s commitment to structural and fiscal reforms, enhancing private sector participation under the State Ownership Policy, and advancing green transition initiatives. Proceeds from state-owned asset sales will be channeled into supporting fiscal stability and stimulating private sector growth.

The minister also unveiled Egypt’s new Economic Development Narrative, a comprehensive framework aligning Vision 2030 with the government’s current program to respond to shifting regional and global dynamics. Egypt, which holds one of the largest World Bank portfolios in the MENA region, is leveraging partnerships to drive sustainable development.

The World Bank’s Managing Director, Anshula Kant, reaffirmed support through the Financial Facilitation Incentives framework and debt-for-development swaps, focusing on sectors like education, health, and the environment. Ongoing discussions highlighted the importance of public-private partnerships, fiscal consolidation, and the launch of a green taxation strategy by December 2025. Since 1959, Egypt has received over $27.5 billion in World Bank financing across 201 projects, with 13 active projects worth $6.5 billion currently underway.