On Monday, January 26, 2026, the Egyptian government announced a substantial repayment of arrears to pharmaceutical companies and medical equipment manufacturers, part of a strategic effort to stabilize the national drug supply.
During a meeting chaired by Prime Minister Mostafa Madbouly, officials reviewed a report on outstanding debts and outlined a clear timetable for settling the remaining liabilities to restore confidence in the sector.
To address the immediate liquidity needs of suppliers, the Ministry of Finance disbursed 2.5 billion Egyptian pounds to the Egyptian Authority for Unified Procurement (UPA). Simultaneously, the Ministry of Health and Population settled 1.7 billion pounds in dues, while the General Health Insurance Authority continues its commitment to paying approximately 2 billion pounds on a monthly basis. These injections of capital are intended to ensure that manufacturing and supply chains remain uninterrupted, preventing shortages of vital medications in the domestic market.
Prime Minister Madbouly emphasized that securing a sustainable strategic stockpile of medicines is a top government priority. He noted that the state is continuously monitoring the availability of essential drugs to ensure the stability of healthcare services provided to citizens. This fiscal move follows reports from late 2025 suggesting that the UPA still faced nearly 17 billion pounds in arrears, highlighting the government’s determination to close “legacy files” and build a more resilient procurement system through a new electronic unified system.
By clearing these debts, the Egyptian authorities aim to support local production and encourage international pharmaceutical firms to maintain their presence in Egypt. The government’s proactive stance is seen as a vital step in safeguarding national health security amid the broader economic challenges and currency fluctuations that have pressured the healthcare sector over the past year.
MK/AK/ac/Sf/fss/abj/APA