Arab Finance: Egypt is expected to receive $1.6 billion from the International Monetary Fund (IMF) following its board meetings this summer, IMF Communications Director Julie Kozack said in a press briefing.

Kozack noted that discussions on the seventh review of Egypt’s extended fund facility (EFF) program and the second review under the Resilience and Sustainability Facility (RSF) are progressing.

The official affirmed that the IMF welcomes the country’s ongoing efforts to strengthen domestic revenue mobilization, saying it is essential for creating fiscal space to finance priority social and development spending.

"It is important to raise revenue so Egypt can meet its social and development needs with the appropriate government spending. Broadening the tax base, improving the efficiency, fairness, and transparency of the tax system are important elements of Egypt's fiscal reform agenda," Kozack stated.

Addressing the privatization strategy, the IMF remains in close discussions with the Egyptian authorities regarding the implementation of the state ownership policy (SOP), including the ongoing asset divestment program.

She concluded: “This remains, as we have discussed here before, very important for reducing the state's footprint in the economy and supporting private sector-led growth in Egypt. So, both of those areas that you mentioned are very important for Egypt.”

Last May, an IMF mission arrived in Cairo for the seventh review of Egypt’s EFF program, with the process potentially unlocking the $1.6 billion in financing.