CivilianSupremacy
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Hi, There is article written on Egypt's economic struggles and it resonates exactly as Pakistan. Apparently, both countries also have the same core reason for this problem.
Economic Problems:
Egypt has dug itself a massive hole of debt. On Friday, the International Monetary Fund (IMF) will extend a $3 billion loan to the country, a fourth aid package in six years, as its financial tailspin continues.
The loan, along with billions of dollars in cash inflows from Abu Dhabi and Riyadh, are Band-Aids, experts say, designed to keep the Arab world’s most populous country afloat. Without proper reforms, however, Egypt may never be able to shake off its chronic financial woes and break its growing debt addiction.
In recent months, the Egyptian pound has plummeted, losing 14.5% of its value against the US dollar in October. The prices of vegetables, dairy products and bread skyrocketed. Some families are restricting their diets as their purchasing power shrinks, while others struggle to find imported products once available at their local stores.
But how did Egypt get here?
The problem, analysts say, lies in Egypt’s apparent inability to change the way its economy works, including easing the tight control exerted by the military and its many enterprises. This is a problem, the experts say, that stunts private sector competition and drives away investment.
Loans were not primarily used to improve the economic framework conditions but to protect the revenues and assets of the armed forces, to finance major projects in which the military could earn significant money, and to pursue an expansive military build-up
Full Article: https://edition.cnn.com/2022/12/16/business/egypt-debt-crisis-mime-intl/index.html
Economic Problems:
Egypt has dug itself a massive hole of debt. On Friday, the International Monetary Fund (IMF) will extend a $3 billion loan to the country, a fourth aid package in six years, as its financial tailspin continues.
The loan, along with billions of dollars in cash inflows from Abu Dhabi and Riyadh, are Band-Aids, experts say, designed to keep the Arab world’s most populous country afloat. Without proper reforms, however, Egypt may never be able to shake off its chronic financial woes and break its growing debt addiction.
In recent months, the Egyptian pound has plummeted, losing 14.5% of its value against the US dollar in October. The prices of vegetables, dairy products and bread skyrocketed. Some families are restricting their diets as their purchasing power shrinks, while others struggle to find imported products once available at their local stores.
But how did Egypt get here?
The problem, analysts say, lies in Egypt’s apparent inability to change the way its economy works, including easing the tight control exerted by the military and its many enterprises. This is a problem, the experts say, that stunts private sector competition and drives away investment.
Loans were not primarily used to improve the economic framework conditions but to protect the revenues and assets of the armed forces, to finance major projects in which the military could earn significant money, and to pursue an expansive military build-up
Full Article: https://edition.cnn.com/2022/12/16/business/egypt-debt-crisis-mime-intl/index.html
