At a very sensitive economic time, why bet the government On the deputy prime minister of a strong economic cabinet? As one of the most important tools for controlling the economic rhythm in the next stage, especially with the approaching end of the cooperation program with the International Monetary Fund, and the challenges this poses related to reliance on own resources and achieving unprecedented growth rates.
Dr. Alia Al-Mahdi, Professor of Economics at Cairo University, believes that the creation of this position represents a pivotal step for organizing economic work within the government, stressing that the current stage cannot tolerate fragmented work, but rather requires economic leadership capable of full coordination between financial, monetary, and planning policies, to reach real growth numbers that have not been achieved before.
She stressed that the success of this step depends on the existence of real harmony between the ministries of the Economic Community and the Central Bank, especially in light of the expected transformation after the end of the IMF program next November, as the state will rely more on its own capabilities, which requires unifying the vision between the ministries of production and services, led by industry, tourism and communications.
A productive economy, not crisis management
She pointed out that the next stage requires a greater focus on productive sectors, expressing her hope that the government structure will include a deputy prime minister specialized in productive industries, which will ease the burden on the prime minister and prevent the dispersion of efforts between a large number of files and ministries.
She explained that the end of the IMF program requires the government to comprehensively review financial policies, in light of the continuing deficit in public expenditures and the high volume of public debt, stressing that addressing these challenges must not be done by increasing taxes, but rather by expanding the productive base and increasing revenues through investment.
Investment first…and interest is under review
She stressed that local investment must be a priority in the next stage, as it is the main engine for supporting the national economy, in addition to working to attract foreign direct investments, not short-term funds, which represent risks to market stability.
In this context, she called for a reconsideration of monetary policy, especially high interest rates, with the need to take into account the path of inflation before making any decisions to reduce, stressing that debt interest has become the largest item in public spending, which puts severe pressure on the state’s general budget.
Hot money warning
She warned against excessive reliance on what is known as “hot money,” considering that it represents an unsafe element of the economy, as it can leave the market at any moment, causing violent shocks. She pointed out that many countries impose restrictions on the exit of these funds, and even oblige their owners to bear costs when withdrawing their investments, as is the case in major markets.
This proposal reflects that the government’s bet in the next phase is no longer solely on external financing, but rather on more disciplined economic management, led by a unified vision, that places production and long-term investment at the top of priorities, in preparation for the post-IMF phase.
