New capital: Prime Minister Mostafa Madbouli affirmed that the government fully recognizes the scale of pressures facing the state and citizens, stressing that all possible efforts are being exerted to overcome the current unprecedented crisis with the least possible losses. Speaking at a press conference, held at the government headquarters in the New Capital, Madbouli said the draft state budget will be presented to President Abdel Fattah El Sisi within the coming days and will include announcements of wage increases.
According to State Information Service Egypt, the premier added that strict market oversight measures are also being enforced, noting that decisive directives have been issued to the relevant ministers to confront any attempts to manipulate prices, hoard goods, or conceal them from the market. He warned that the state will take all necessary legal measures, including referral to military prosecution, against those proven to be involved in such violations, stressing that the government will not tolerate exploitation or illegal profiteering under the current exceptional circumstances.
The remarks came during a press conference attended by Finance Minister Ahmed Kouchouk, Supply and Internal Trade Minister Sherif Farouk, Foreign Minister Badr Abdelatty, Petroleum and Mineral Resources Minister Karim Badawi, and Minister of State for Information Diaa Rashwan. The conference aimed to clarify the facts surrounding a package of temporary exceptional measures adopted by the government to strengthen the national economy's ability to cope with the repercussions of the ongoing military escalation in the region.
Madbouli said this was the second press briefing held since the outbreak of the regional crisis, explaining that each minister would outline the impact of the developments on the sectors under their portfolios. He also addressed the political dimension of the crisis, saying Egypt had made extensive efforts from the outset to prevent the outbreak of the conflict in coordination with international partners, due to its awareness of the serious repercussions for regional stability.
The prime minister reiterated Egypt's full condemnation of targeting Arab states and attempts to drag them into the conflict, affirming Cairo's support for sisterly countries that have been subjected to unjustified attacks. Madbouli said the government is closely monitoring regional developments around the clock and had prepared proactive scenarios in anticipation of such a conflict. He added that a central crisis management committee, headed by the prime minister, was formed immediately after the outbreak of the crisis, with two meetings already held over the past two days to assess developments.
The premier noted that the war has caused severe disruptions in global supply chains, particularly in the energy sector, which in turn affected various commodities and services. He pointed out that global oil prices jumped from $69 per barrel before the war to $84, then rose to $93 and briefly reached $120, before stabilizing at around $92-$93 per barrel. Madbouli said such fluctuations created a large financial gap, especially since Egypt's budget estimates had been based on an oil price of about $61.3 per barrel, meaning the current levels represent roughly a 50 percent increase over the initial assumptions.
He explained that Egypt had prepared well and maintains large strategic reserves inside the country, but energy and fuel imports are priced according to global market rates, making the daily price fluctuations a major factor affecting final costs. The prime minister said the government faced two options: either maintain prices and bear the full financial burden, which would impose heavy losses on the state budget, or take preemptive and calculated measures to ensure the continuation of economic activity and production.
He stressed that the government chose the latter approach, while still bearing the larger share of the cost increases resulting from global fuel price hikes in order to ease the burden on citizens and productive sectors as much as possible. Madbouli added that the government has also adopted urgent spending rationalization measures, including postponing or freezing non-essential expenditures across state entities while prioritizing spending that directly supports citizens and strategic goals.
At the same time, directives were issued to rationalize energy consumption, following discussions held during the latest meeting of governors. The premier also highlighted the government's commitment to social protection measures, particularly for low-income groups affected by the current decisions. He referred to a recently announced social support package that includes EGP 400 in financial assistance for about 15 million families, including beneficiaries of the ration card system and the Takaful and Karama program.
Originally scheduled for Ramadan and Eid Al-Fitr, the support has now been extended for two additional months until Eid Al-Adha, he said. Madbouli also stressed that the government maintains continuous coordination with the Central Bank of Egypt to review monetary policy, while continuing to target exchange rate flexibility and lower inflation. He reassured citizens that foreign currency resources remain available to meet the country's needs during the current and upcoming period, noting that Egypt is confronting the crisis from a stronger position than in previous years.
The prime minister acknowledged the pressures faced by citizens and asked for their understanding, noting that some measures had not originally been planned but became necessary due to the exceptional circumstances. He said the government is sharing part of the burden with citizens temporarily until conditions stabilize. Madbouli concluded by stressing that Egypt will continue its economic reform program and development path, expressing confidence that the country will overcome the current crisis as it has successfully navigated previous challenges.