Petroleum Ministry Owed $22BN

Egyptian Prime Minister Ibrahim Mahlab this week said that his government is determined to carry out much needed financial and economic reforms and warned that the current subsidies system cannot continue in its present from. The government has plans to restructure subsidies and remove them gradually over a five-year period.

According to the budget for the 2014-15 financial year (beginning 1 July), energy subsidies are projected to fall by 22% to E£104.5bn or $14.6bn (MEES, 6 June). The draft budget, which was prepared by the interim government installed after Mr Mursi ouster, is currently being reviewed by the new government, reportedly because Mr Sisi refused to sign off the “high deficit” it entails. (CONTINUED - 177 WORDS)