Masr Al Youm Newspaper
48 state owned enterprises to be privatized
Cairo - The Ministry Of Finance will streamline the public sector in FY2021-2022, and cut 48 state-owned enterprises. The government is planning to reduce the number of state-owned enterprises (SOEs) to 73 from 119 in FY2021-2022 through privatization, mergers or liquidations as it looks to streamline the sector.
Egypt’s public sector has long been criticized as overstaffed and inefficient, and officials have long struggled to push the firms towards profitability. All the cut SOE's are ones that have not made profit through the last fiscal year.
The streamlining of the public sector is one of the important aspects of the New Economic Plan which was passed in the first Revolutionary Command Council Conference. The new Economic Plan also aims to grow the long stagnant private sector as Egypt hopes to improve it's economic situation and bring more revenue to cover for the public deficit.
Writer: Youssef Ahmed