Cairo: Egyptian Prime Minister Mostafa Madbouly said on Friday that the International Monetary Fund tends to show greater flexibility when it sees political and economic stability, stressing that reform programs must be nationally owned and adaptable to shocks. Speaking at an economic forum in Beirut on prospects for Egyptian-Lebanese cooperation, Madbouly said Egypt had renegotiated aspects of its IMF-backed program after regional developments such as the war in Gaza and a sharp decline in Suez Canal revenues, insisting the program should remain dynamic rather than rigid.
According to State Information Service Egypt, Madbouly stated that Egypt drafted its own economic reform plan before negotiating with the IMF, setting clear red lines on energy reform, subsidies, fiscal policy, and monetary policy, with talks focusing mainly on implementation mechanisms, timelines, and targets. He acknowledged that economic reforms are often unpopular, but said governments must prioritize long-term national interests over political cost, adding that parallel social protection programs were built into Egypt's reforms to support the most vulnerable groups.
On development, Madbouly said Egypt's strategy to expand inhabited land from about 7% to at least 14% through new cities and infrastructure projects had helped create around 5 million jobs, cutting unemployment to about 6.2% despite population growth to nearly 110 million. He said the New Administrative Capital was part of a broader plan that includes around 30 new cities, backed by massive investment in roads, ports, airports, energy, and transport networks to support sustainable growth and attract investment.
Turning to Lebanon, Madbouly reiterated Egypt's support, saying Lebanon's stability and growth were inseparable from Egypt's, and urged stronger private-sector partnerships, with governments focusing on easing procedures and removing administrative barriers. He said Egypt was ready to facilitate the registration of Lebanese pharmaceutical products and expand market access, while stressing that clear fiscal and monetary policies were essential to restoring investor confidence in Lebanon. Madbouly added that Egyptian and Lebanese investments could also serve as a gateway to wider African and European markets through Egypt's free trade agreements, encouraging deeper regional economic integration.