The world came through. Now Egypt must hold up its end of the bargain

The IMF has a chequered history of cramming neoliberal reforms down the throats of developing countries. But in the case of Egypt, its key provisions can only help, writes Borzou Daragahi

The reforms are aimed at reducing the state’s footprint in the economy and opening up its books (AP)

For years, the economy of the Arab world’s most populous nation has been collapsing before our eyes. This is largely due to what many consider to be the corruption and gross mismanagement of President Abdel Fattah el-Sisi, the military leader who seized power in Egypt in a 2013 coup and has now led the country for nearly a decade.

The International Monetary Fund (IMF) has come to the rescue with a $3bn 46-month package that has some strings attached. Some of the conditions entail even more pain for average Egyptians, including a reduction in subsidies and a removal of controls on exchange rates that has led to a further collapse of the country’s currency, the pound, which now trades at nearly 30 to the dollar.

But key provisions of the IMF could only benefit Egypt, at the cost of the powerful military that has been ruling over the nation since the 1950s and continues to pilfer the country. In particular, the new reforms are aimed at reducing the state’s footprint in the economy and opening up its books.