IMF Calls for More MENA Region Subsidy Reform - Middle East Real Time - WSJ

IMF Calls for More MENA Region Subsidy Reform - Middle East Real Time - WSJ:



"One of Egyptian President Abdel Fattah Al Sisi’s first policy steps when he took office was to cut state subsidies on petrol and diesel, saying it was a “bitter medicine” long overdue for the country.



Egypt’s example illustrates the challenge other countries in the Middle East and North Africa region face, where subsidy reforms are increasingly at the top of governments’ agendas, according to the International Monetary Fund. In a new 118-page paper, the IMF makes a comprehensive case for the further cutting of subsidies while simultaneously calling for a social safety net to be created in the region.



For decades, governments in the MENA region have resorted to lavish subsidies on energy and food to appease their citizens, spending more on average than any other region and in the process placing a considerable burden on state budgets."



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