The Egyptian government has outlined a strategic fiscal objective to lower its public debt-to-GDP ratio to 69.5% by 2030, a move designed to alleviate debt-servicing pressures, fortify public finance sustainability, and create crucial fiscal space for priority public sectors.
During a high-level meeting held on Wednesday, November 11, 2026, at government headquarters in the New Administrative Capital alongside Minister of Finance Ahmed Kouchouk, Prime Minister Mostafa Madbouly emphasized the necessity of establishing a sustainable downward trajectory for public indebtedness. Discussions centered on implementing key recommendations from the recent “Egypt 2026 Forum” concerning debt reduction across entities covered under the state’s general budget. The Prime Minister stressed strict adherence to defined statutory ceilings for public debt, external obligations, and sovereign guarantees, while urging enhanced inter-agency coordination to better regulate state financial commitments.
This strategic ambition builds upon positive indicators highlighted by the administration. According to figures presented by Prime Minister Madbouly on September 29, the overall public debt-to-GDP ratio dropped to 81.8% at the conclusion of the 2025/2026 fiscal year, down significantly from approximately 96% two years prior. Minister of Finance Kouchouk added that the debt-to-GDP ratio for budget-covered entities decreased by roughly 14% between June 2023 and June 2026, which included a 3.9% reduction during the 2025/2026 fiscal year alone.
Despite these gains, Egypt continues to manage substantial financial obligations, with external public debt standing at $166.75 billion at the end of June 2026, while unofficial estimates place domestic debt above 11 trillion Egyptian pounds, or approximately $203 billion. Successfully navigating this four-year transition from 81.8% to 69.5% will depend heavily on the broader economy’s capacity to sustain robust growth, optimize state revenues, and maintain rigorous financial discipline across all public institutions.
MK/AK/Sf/fss/abj/APA