Egypt has unveiled a $4 billion social support package to aid vulnerable households facing rising living costs before Ramadan. This package includes a raise in the minimum wage, increased cash support for low-income families, and higher pension payouts. The government aims to combat the financial challenges stemming from a prolonged economic crisis and significant inflation rates, as many citizens struggle to access basic necessities.
On Wednesday, Egypt announced a substantial EGP 200 billion ($4 billion) social support package aimed at assisting vulnerable households amidst escalating living costs as the holy month of Ramadan approaches. This initiative includes an increase in the minimum wage for public-sector workers, enhanced cash support for low-income families, and increased pension payouts. Prime Minister Mostafa Madbouly previously vowed to extend financial support to citizens during Ramadan, acknowledging the hardships faced by many families in recent years.
The financial crisis in Egypt has persisted for multiple years, leading to unprecedented inflation rates that have rendered basic necessities unaffordable for many citizens. The economic turmoil, exacerbated by Russia’s invasion of Ukraine, has caused significant instability, prompting hopes that recent agreements with the International Monetary Fund (IMF) will help stabilize the economy. The new measures are a direct response to the challenges posed by this ongoing economic crisis.
As part of the newly announced measures, the government plans to increase the minimum wage for public-sector workers and civil servants by 16%, bringing it to EGP 7,000 ($138). Pension payouts are set to rise by 15%, while the financial support for the Takaful and Karama cash assistance program will increase by 25%, benefitting many vulnerable households in Egypt. Additionally, families receiving ration cards will receive extra financial assistance during Ramadan and Eid Al-Fitr.
The additional support provided to ration card holders will involve two payments distributed throughout the holy month, with amounts varying between EGP 125 ($2.5) and EGP 250 ($5), depending on family size. Furthermore, the government is establishing an economic empowerment fund with an allocation of EGP 10 billion and providing an additional EGP 6 billion ($118.5 million) in financial aid to support farmers amid ongoing economic challenges.
In summary, Egypt’s announcement of a $4 billion social support package underscores the government’s commitment to alleviating the financial burdens faced by its citizens in the lead-up to Ramadan. By implementing wage increases, enhanced pensions, and additional financial assistance for low-income families, the government aims to address the pressing economic challenges exacerbated by inflation and the ongoing crisis, ultimately seeking to improve the living standards of vulnerable populations.
Original Source: www.newarab.com
