Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


Egypt's Sissi Pledges Measures to Ease Strain on Poor

by Reuters

   CAIRO, EGYPT --

   Egyptian President Abdel Fattah el-Sissi sought to ease the concerns of
   Egyptians grappling with rising prices ahead of the Muslim holy month
   of Ramadan by pledging a raft of economic measures including tax
   breaks.

   Sissi, in an interview published in state newspaper Al-Ahram on
   Wednesday, said his government would introduce tax cuts and increase
   subsidized food in the coming weeks to help Egyptians struggling amid
   the highest inflation rates in decades.

   Affordable food is an explosive political issue in Egypt where tens of
   millions of people live below the poverty line and hunger and economic
   discontent have helped unseat two presidents in recent years.

   During Ramadan, Islam's holy month which begins next week when
   believers abstain from eating and drinking from dawn to dusk, Egyptian
   families can struggle to make ends meet.

   Sissi said Egypt would double quantities of subsidized food to mitigate
   the effects of economic reforms and "benefit middle class and
   low-income groups".

   It was not immediately clear if the measure would be extended beyond
   the holy month.

   Egypt has struggled to revive its economy following the 2011
   revolution, which drove away tourists and foreign investors, both major
   sources of hard currency.

   The pound has halved in value since the central bank floated the
   currency in November which helped Egypt secure a $12 billion loan from
   the International Monetary Fund (IMF).

   As part of reforms agreed with the IMF that authorities say are
   necessary to create jobs, Egypt has introduced a value-added tax and
   cut subsidies to curb its budget deficit, placing financial strain on
   families.

   "The measures the president is talking about will help somewhat to
   absorb people's anger at rising prices and to help them cope with the
   burdens of life," said Reham El-Dessouki, an economist at Arqam
   Capital.

   But Um Mohamed from Cairo's Shubra El-Kheima neighborhood said she was
   tired of being asked to endure painful reforms and was struggling to
   provide food for her children.