In a controversial move, Egyptian Prime Minister Mostafa Madbouly announced on Wednesday that the price of subsidized bread would spike from 5 piastres a loaf to 20 piastres starting in June. He said the government was also contemplating moving to a cash-payment system instead of subsidies, which would be cheaper.
“We see today the size of the subsidy bill on the Egyptian state and so we had to start to move as little as possible to ensure the sustainability of service."
Madbouly said.
Egypt has been gradually reducing subsidies after receiving massive funding from the UAE, EU, World Bank and IMF, which has mandated reforms including bread subsidies.
Roughly two-thirds of Egypt’s population of 105 million rely on subsidized bread as a source of sustenance. Critics say its wasteful and unsustainable.
Bread subsidies cost roughly $2.9 billion annually, according to the Economist. That’s roughly 2.6% of Egypt’s budget.
Egypt last tried to raise bread prices in 1977. But the decision triggered massive protests forcing President Anwar Sadat to back away from the proposal.
An MP in Egypt’s House of Representatives has reportedly submitted an urgent briefing request calling the subsidies a matter of national security that should not be compromised.
Interpol has issued a Yellow Alert (missing persons notice) for two young Irish boys abducted by their Egyptian father, BBC
Egyptian authorities have arrested two men accused of attempting to steal hundreds of ancient artifacts from the seabed, CNN reports.
The US has greenlit arms sales exceeding $5.5 billion to Egypt and Morocco to enhance their defense capabilities and
The International Monetary Fund announced Tuesday a provisional agreement granting Egypt access to approximately $1.2 billion, pending executive board
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