Egypt has announced a $4 billion social support package aimed at aiding vulnerable households as Ramadan approaches. Key features of the package include a 16% increase in the minimum wage for public-sector workers, greater cash support for low-income families, and enhanced pensions. This initiative reflects the government’s response to the ongoing economic crisis, marked by high inflation and decreased purchasing power.
On Wednesday, Egypt unveiled a new social support package worth EGP 200 billion (approximately $4 billion) to assist vulnerable households amid rising living costs as the holy month of Ramadan approaches. The measures include an increase in the minimum wage for public-sector workers, enhanced cash support for low-income families, and higher pensions to alleviate the financial burden on citizens.
This announcement follows a recent commitment from Prime Minister Mostafa Madbouly to provide additional financial aid for citizens during Ramadan, as Egyptians continue to grapple with a multiyear economic crisis marked by soaring inflation and challenges to accessing essential goods.
The government’s plan includes a 16% increase in the minimum wage for public-sector workers, raising it to EGP 7,000 (around $138). Pension payouts will also increase by 15%, while financial support for beneficiaries of the Takaful and Karama programs will rise by 25%. Additionally, ration card-holders will receive further assistance during Ramadan and Eid Al-Fitr.
Payments for ration card-holders will total either EGP 125 ($2.5) or EGP 250 ($5), depending on family size. Furthermore, the government is establishing an economic empowerment fund, providing EGP 10 billion in support and allocating an additional EGP 6 billion (approximately $118.5 million) for farmers.
The ongoing financial crisis stems from the economic impact of Russia’s invasion of Ukraine, which significantly affected grain supplies and increased energy costs in Egypt. Consequently, the Egyptian pound depreciated significantly against the dollar, resulting in persistent inflation and heightened poverty levels.
In response to the economic downturn, the Egyptian government has taken various measures, including an $8 billion emergency loan from the International Monetary Fund (IMF) and asset sales to combat a foreign currency shortage. In light of these continued challenges, the government has made efforts to increase wages and improve subsidies to support its citizens.
In summary, Egypt has announced a substantial $4 billion social support package to assist its citizens in coping with economic hardships ahead of Ramadan. Key measures include wage increases, enhanced pension payouts, and additional aid for vulnerable families. As the country navigates a challenging economic landscape, these initiatives aim to alleviate financial burdens and support the population during the holy month. The government’s proactive response reflects its commitment to addressing the pressing needs of its citizens amid ongoing economic difficulties.
Original Source: www.newarab.com
