Egypt plan fuels unease

Egypt’s cabinet reassured farmers that the stock of subsidized fertilizer stands at around 7.8 million bags—enough for several months—and confirmed that full allocations would continue to be distributed despite a 33% cut in gas supplies to fertilizer plants, following an earlier 20% reduction. The government’s three-month austerity plan includes cutting energy consumption by government agencies by 20% and fuel use by government vehicles by 30%, as well as suspending new projects, spending and events. Experts warn that energy restrictions will raise production costs and could affect fertilizers, agricultural products, iron and steel, cement and pharmaceuticals, with exports potentially declining. The plan, however, could ease pressure on the Egyptian pound and the budget deficit. The plan, along with questions about fertilizer shortages and rising prices, has prompted parliamentary calls to review earlier austerity measures.

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