Abdel Fattah al-Sisi general turned president has given Egypt the title of investment destination with the help of IMF. There is a large streak of investors wishing to make a
fortune over here.
As it all looks good and bright from the outside but there lies a dark reality. According to the World Bank report “some 60% of Egypt’s population is poor or
vulnerable.” But the question here lies is if there is so much of trouble in the economy in general, how does it appears so well from the outside?
The IMF and Sisi’s government has structured it in a way that they look economically stable. It is all filled with huge amounts of debts. Due to mismanagement of taxes and public money, the debts are five times more than before.
Sisi’s government has taken a huge amount of loan from the IMF in 2016. Almost 38% of government income is utilised to pay debts. Egypt is having a population of about 100 million and it spends such a limited amount of money on its health, education, policies and infrastructure. To cover the debts, there is an increase in fuel and electricity prices.
There is no subsidy provisions for the citizens. If nothing would be done soon, Egypt will be bankrupt. If Egypt gets bankrupt there will be an unbelievable consequences all over the world. People might think about their state of living and wish to migrate somewhere else before it is too late.
IMF also has a lot to explain about the restructuring of the economy. Sisi’s government is also losing its validity internationally due to complaints of
election tampering. Moreover Egyptian pound is falling constantly. On one side the investors are exposed to new opportunities but on the other side the local population suffer.