Egypt has introduced a $4 billion social support package primarily aimed at aiding vulnerable households before Ramadan. The measures include minimum wage increases, higher pensions, and additional financial support for low-income families. This comes in response to severe inflation and economic challenges faced by the country, exacerbated by global events.
Egypt has announced a social support package worth EGP 200 billion ($4 billion) to assist vulnerable households in preparation for Ramadan. This package aims to alleviate the impact of increasing living costs during a period known for family gatherings and festive meals. It follows Prime Minister Mostafa Madbouly’s earlier commitment to supplying additional financial support to citizens ahead of the holy month.
Key measures within the support package include a 16% increase in the minimum wage for public-sector workers, raising it to EGP 7,000 ($138). Additionally, pension benefits will see a 15% hike, while beneficiaries of the Takaful and Karama cash assistance program will receive a 25% increase in their support. Ration card holders will also gain extra aid with payments scheduled during Ramadan and Eid Al-Fitr, amounting to EGP 125 ($2.50) or EGP 250 ($5), depending on family size.
The support comes amid an ongoing financial crisis in Egypt exacerbated by global events, including Russia’s invasion of Ukraine, which has led to soaring inflation and significant cost increases for basic necessities. The Egyptian pound has severely devalued, losing nearly 70% of its value against the U.S. dollar, pushing many households deeper into poverty. Following this crisis, Egypt turned to the IMF for an $8 billion emergency loan and initiated several strategies for economic recovery, including asset sales and wage increases.
To further bolster economic recovery efforts, the government has allocated EGP 10 billion to a new economic empowerment fund and an additional EGP 6 billion ($118.5 million) in support for farmers. These measures represent the government’s commitment to improving the financial situation of its citizens during a challenging economic climate that has left many in need.
In summary, Egypt’s recent announcement of a $4 billion support package aims to assist vulnerable households amid rising living costs, particularly during Ramadan. Key components of the package include wage increases, enhanced pensions, and additional aid for ration card holders. These actions reflect the government’s effort to alleviate economic pressures stemming from ongoing financial challenges, including high inflation and currency devaluation, while enhancing social welfare programs.
Original Source: www.newarab.com
