May 18, 2022

Dubai Week

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Import restrictions in Egypt will raise the rate of inflation

Import restrictions in Egypt will raise the rate of inflation

The Egyptian Chamber of Commerce has submitted a memorandum to Prime Minister Mustafa Matbouli calling for urgent intervention to support the manufacturing sector, which is on the verge of a complete shutdown of work and production.

The association noted that there are already many who have been completely shut down due to absence Availability of required production materials.

The association said that if the current situation continues, it will lead to higher inflation rates due to the imbalance between supply and demand.

The association points out that the owners of companies and factories are unable to continue to pay arrears to various parties.

It demanded the withdrawal of the document collection system by banks for all import activities related to full, industrial and agricultural production requirements.

In an interview with al-Arabia, Kamal El-Dezoki, a member of the Confederation of Indian Industry and a member of the Egyptian Chamber of Commerce, said the factories had not yet been shut down, but that they were moving in the direction of closing them. Due to the repercussions associated with the decisions of the Central Bank regulating imports.

Al-Desouki added that the biggest problem is switching from a payment method with shipping documents to a method of payment through document loans.

He said the decision would have a huge negative impact on Egypt’s industrial sector.

El-Desouki said the decision would undermine the state’s plan to increase exports to $ 100 billion annually as a result of a lack of production needs and spare parts needed to maintain factories.