Egypt’s parliament has approved the government’s economic and social development plan for the fiscal year (FY) 2025/26, which targets an economic growth rate of 4.5% amid ongoing regional instability.
The plan, presented to the House of Representatives by Planning Minister Rania Al-Mashat, aims for a significant recovery from the 2.4% growth recorded in the FY 2023/24. Preliminary indicators for the first nine months of the current FY 2024/25 also point to an improvement in economic growth rates, according to the government.
Under the new plan, public investments are set at EGP 1.16trn, compared with an expected EGP 1trn in the current fiscal year. The government stated this figure reflects a strategy to rationalise public spending, reduce the public debt burden, and provide more space for private sector participation in development efforts.
Private sector investment is projected to increase to approximately EGP 1.94 trillion, contributing an expected 63% of total investments, compared to 37% from the public sector. The plan will prioritise public funds for projects with high completion rates.
Speaking after the vote, Al-Mashat said the plan was formulated amid “delicate circumstances” that have become “more complex in light of the surrounding and accelerating regional developments.”
She added that the uncertainty requires a “flexible planning approach and continuous monitoring” of the plan’s targets. The government will continue to monitor the situation and may revise indicators if conditions worsen, she said.
Al-Mashat expressed her appreciation for the parliament’s support and its “serious discussions and valuable observations” on the plan. The session was chaired by the Speaker of the House, Hanafi Gebaly.
