Mustafa AY – TDO – 08.06.2018 On Tuesday, Egypt’s former PM Sherif Ismail submitted his resignation letter to re-elected President Abdulfattah el Sisi. Following his resignation letter, the cabinet automatically dissolved itself. Ex-PM Ismail embarked on a process of reformation in fiscal policies on account of irrepresibly increasing current account and budget deficits. In order to inhibit the fiscal crisis in Egypt, former PM stated that there is a collosal need for foreign investor. However, since coup’d etat administration has been in charge, foreign investors evaluates investment in Egypt as risky business. For the abovementioned reason, Sherif Ismail couldn’t solve the troublesome fiscal crisis in a short-term.
In recent weeks, ex-PM Sherif Ismail borrowed a 12 billion dollars-loan from International Monetary Fund with the aim of eliminating the budget and current account deficit. Through this money, Sherif Ismail was planning to reform the state’s fiscal policies and structure by imposing austeriy package. However, he couldn’t do it becasue he’s been struggling with unrecovered health condition for a while. After he handed his resignation letter in the Presidnet Sisi, Sisi sought for a proper candidate for the office. He found an appropriate candidate that is Mustafa Mabdouli, who undertook the Ministry of Housing in the previous cabinet. President Sisi assigned Mabdouli to form a new government.