Roughly ten per cent of Egypt’s richest people take a major 36 per cent of government-sponsored energy subsidy, a World Bank expert says.
The Egyptian government is required to lift energy subsidies wile protecting the poor at the same time, says Ashish Khanna, a WB energy specialist.
He adds that Egypt was lucky with the fall in oil prices and slashed subsidies but, if prices pick up again, the country will be in serious trouble, according to Al Mal News.
He notes that energy subsidies comprise seven per cent of gross domestic product, but there is a pressing need to reduce it to 3.7 per cent.
The expert points out that the country’s allocation for education and healthcare services doubled as the government rechanneled funds saved from subsidies to other priority sectors.
Khanna asserts that the Egyptian government should take into account the most impoverished segments of the society when planning a total end to the subsidy system.