Egypt Raises Minimum Wage by 50% as Part of ‘Urgent’ Package

 People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)
People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)
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Egypt Raises Minimum Wage by 50% as Part of ‘Urgent’ Package

 People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)
People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)

Egyptian President Abdel Fattah al-Sisi has raised the monthly minimum wage by 50% to 6,000 pounds ($194) to take effect in March, part of a 180 billion pound "urgent social protection package", the presidency said on Wednesday.

The move comes at a time when Egypt is on a pound devaluation watch. Some analysts said a 200 basis point interest rate hike by the central bank last week may indicate a devaluation is on the way.

The Egyptian pound, fixed at 30.85 to the dollar since March, traded on the black market earlier this month as low as 71 to the dollar, but has strengthened since then to about 60.

Sisi also directed the government to raise the tax threshold by 33%, from 45,000 pounds to 60,000 pounds, for all employees in the public and private sectors, the presidency statement said.

The social package included an added increase in the wages of state workers by a minimum ranging from 1,000 to 1,200 pounds per month, as of March.

The International Monetary Fund said on Thursday it had agreed with Egypt on the key policy components of an economic reform program, in a further sign that a final deal to augment a $3 billion loan is nearing completion.

Egypt has been suffering from a slow-burning economic crisis and chronic shortage of foreign currency and has been in talks with the IMF for the last two weeks to revive and expand the loan agreement signed in December 2022.

The agreement included pledges that Egypt would move to a flexible exchange rate regime and reduce the state's footprint in the economy while boosting the private sector.

However, disbursements under the program are subject to eight reviews, the first and second of which were scheduled last year but postponed as the exchange rate has remained steady.

The IMF mission chief for Egypt, Ivanna Vladkova Hollar, said last Thursday that the two sides made "excellent progress" in discussions of a comprehensive policy package needed to reach a Staff Level Agreement for the combined first and second reviews.

The Egyptian government in January raised prices of several services including electricity, metro tickets and telecommunication services as it tries to contain a budget deficit.

Egypt's already weak economy has suffered from the Gaza crisis, which dampened tourism and decreased shipping through the Suez Canal, a major source of foreign currency.

The country's net foreign reserves saw a slight rise to $35.25 billion in January from $35.22 billion in December, the central bank said on Monday, while annual headline inflation slid to 33.7% in December from 34.6% in November and a historic high of 38.0% in September, according to the state statistics agency CAPMAS. 



G7 Leaders Meet in Canada Hoping to Avoid Trump Clash

 Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)
Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)
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G7 Leaders Meet in Canada Hoping to Avoid Trump Clash

 Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)
Canada's Prime Minister Mark Carney attends a bilateral meeting with Britain's Prime Minister Keir Starmer (not pictured), before the start of the G7 summit, at Parliament Hill in Ottawa, Ontario Canada, June 15, 2025. (Reuters)

Group of Seven leaders gather in the Canadian Rockies starting on Sunday amid growing splits with the United States over foreign policy and trade, with host Canada striving to avoid clashes with President Donald Trump.

While Prime Minister Mark Carney says his priorities are strengthening peace and security, building critical mineral supply chains and creating jobs, issues such as US tariffs and the conflicts in the Middle East and Ukraine are expected to feature heavily.

Israel and Iran launched fresh attacks on each other overnight into Sunday, killing scores hours before the leaders of the world's industrialized democracies meet.

"This issue will be very high on the agenda of the G7 summit," German Chancellor Friedrich Merz said. He said his goals are for Iran to not develop or possess nuclear weapons, ensuring Israel's right to defend itself, avoiding escalation of conflict and creating room for diplomacy.

The summit takes place in the mountain resort of Kananaskis, some 90 km (56 miles) west of Calgary.

The last time Canada played host, in 2018, Trump left the summit before denouncing then Canadian Prime Minister Justin Trudeau as "very dishonest and weak" and instructing the US delegation to withdraw its approval of the final communique.

"This will be a successful meeting if Donald Trump doesn't have an eruption that disrupts the entire gathering. Anything above and beyond that is gravy," said University of Ottawa international affairs professor Roland Paris, who was foreign policy adviser to Trudeau.

Trump has often mused about annexing Canada and arrives at a time when Carney is threatening reprisals if Washington does not lift tariffs on steel and aluminum.

"The best-case scenario... is that there's no real blow-ups coming out of the back end," said Josh Lipsky, chair of international economics at the Atlantic Council think tank and a former White House and State Department official.

Carney's office declined to comment on how the Israeli strikes would affect the summit.

Diplomats said Canada has ditched the idea of a traditional comprehensive joint communique and would issue chair summaries instead, in hopes of containing a disaster and maintaining engagement with the US.

A senior Canadian official told reporters that Ottawa wanted to focus on actions the seven members - Canada, France, Germany, Italy, Japan, the United Kingdom and the United States - could take together.

Canadian Senator Peter Boehm, a veteran former diplomat who acted as Trudeau's personal representative to the 2018 summit, said he had been told the summit would last longer than usual to give time for bilateral meetings with the US president.

Expected guests for parts of the Sunday to Tuesday event include leaders from Ukraine, Mexico, India, Australia, South Africa, South Korea and Brazil.

"Many will want to talk to President Trump about their own particular interests and concerns," Boehm said by phone.

A senior US official said on Friday working discussions would cover trade and the global economy, critical minerals, migrant and drug smuggling, wildfires, international security, artificial intelligence and energy security.

"The president is eager to pursue his goals in all of these areas including making America’s trade relationships fair and reciprocal," the official said.

The visit of Ukrainian President Volodymyr Zelenskiy to the Oval Office in February descended into acrimony and has served as a warning for other world leaders about the delicate dance they face in negotiating with Trump.

But diplomats say the frustration of dealing with the Trump administration has made some keener to assert themselves.

'THE BIG TEST'

Canada has long been one of Ukraine's most vocal supporters. Trump came to power promising to end the war with Russia within 24 hours, but diplomatic efforts have stalled.

One Ukrainian official involved in preparations for the summit said hope had faded for a strong statement in support of Ukraine. Instead, success for Kyiv would merely constitute an amicable meeting between Trump and Zelenskiy.

A European official said the G7 summit and the NATO summit in The Hague later in June provided an opportunity to underscore to Trump the need to press ahead with a sanctions bill put together by US senators alongside a new European package to pressure Russia into a ceasefire and broader talks.

Trump’s first international summit of his second term will offer some early clues on whether he is interested in working with allies to solve common problems, said Max Bergmann, a director at the Center for Strategic and International Studies.

“The big overarching question here is, basically, is the United States still committed to formats like the G7? That is going to be the big test,” Bergmann said.