No wheat crisis in Egypt, but interest rates are likely to rise : Egypt PM

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No wheat crisis in Egypt, but interest rates are likely to rise : Egypt PM

Cairo : Despite the ramifications of the ongoing conflict between Russia and Ukraine, Egypt's prime minister, Mostafa Madbouly, has stated that Egypt will not face a wheat supply crisis.

Madbouly made the remarks during a press conference on investment authority headquarters in Cairo to highlight the country's economic situation in the face of rising global inflation. 

"We expect to reach 10 million tonnes of wheat production this year for the first time in Egypt's history," the Prime Minister said. Egypt has enough wheat reserves to last four months, and with local wheat production continuing, it should last until the end of the year, he added.

According to PM Madbouly, Egypt has enough basic commodities, such as wheat, cooking oil, rice, poultry, meat, and other items, to last four to six months. The US Federal Reserve recently raised its interest rate in response to rising global inflation, and several central banks around the world have followed suit.

Egypt will provide 130 billion pounds (roughly $7 billion) in the coming general budget to combat inflation, easing some of the burdens on citizens, increase beneficiaries of social protection programmes, and maintaining low-cost food supplies, according to Madbouly. Egypt will most likely raise its interest rate as well, according to the Prime Minister. Egypt also plans to reduce its gross government debt from 85.8% to 75% of GDP by 2026, according to the Prime Minister.