News:
Soon
after floating its currency and increasing fuel prices, Egypt’s government
adamantly defended its decision to engage the IMF. Prime Minister Sherif Ismail
said, “Today, we don’t have the luxury to postpone these decisions; today, we
can’t take painkiller decisions. We’re taking important decisions, decisions
that will revive the economy and take it forward.” However, the Egyptian people
are angry and do not believe the IMF prescription will improve the situation.
This polarization in viewpoints has led some to forecast increase social unrest
and possibly a full-scale uprising.
Comment:
Egypt’s
government devalued the Egyptian pound by 48% and is expected to remove state
subsidies on fuel to qualify for the $12 billion IMF deal. The government has
already lifted subsidies on household electricity and increased the price of
sugar by 40% for ration cardholders. The latest measures will only hurt the
poor and the middle class that has been decimated by the harsh economic
environment.
Egypt’s
economy has been in the doldrums for years, and none of the previous IMF
programmes managed to either revive the economy or return Egypt to any form of
economic self-efficiency. The 2011 revolution and the ensuing political crisis
dealt repeated blows the economy thereby increasing the popular anger towards
Mubarak, followed by Morsi and now current Egyptian President Sisi. The Gulf countries handed Egypt a temporary lifeline by
propping up the economy via aid and cheap oil.
However,
the refusal of Saudi Arabia last month to honour its agreement to ship cheap
refined oil to Egypt precipitated the current crisis. To minimise fuel
shortages, Egypt was forced to use its precious dollar reserves to buy fuel
from the international market. This created a balance of payments emergency
(shortage of dollars) and pushed the Egyptian government to finalize an
agreement with the IMF.
Additionally,
newspaper reports suggest Egypt has finally agreed to send troops to Syria.
Whether this is Sisi’s way of securing the IMF deal remains to be seen, but the
timing is highly suspicious, and adds to the perception that Sisi is in cohorts
with America.
Once
again, the Egyptian people are the victims of the IMF agreement. The harsh IMF
reform package for Egypt and the deployment of
Egyptian troops abroad clearly underscores that President Sisi—just like
all of the previous presidents— constantly puts the interests of foreign powers
and their institutions ahead of the Egyptian people.
It
is now up to the Egyptian people to vehemently reject the IMF deal and openly
work for the removal of Sisi and the illegitimate Nasserite regime that has
enslaved them since 1956 to American hegemony.
However,
the solution does not rest in aimless street protests that pivot around narrow
personal interests, and calls for a Sisi’s removal. If the Egyptian people
seriously covet a long-lasting solution that guarantees honour, dignity and
minimum Western interference, then they must work for the re-establishment of the
rightly guided Khilafah state (Caliphate) on the methodology of the Prophethood.
﴿يَا أَيُّهَا الَّذِينَ آمَنُوا اسْتَجِيبُوا لِلَّهِ وَلِلرَّسُولِ إِذَا
دَعَاكُمْ لِمَا يُحْيِيكُمْ وَاعْلَمُوا أَنَّ اللَّهَ يَحُولُ بَيْنَ الْمَرْءِ
وَقَلْبِهِ وَأَنَّهُ إِلَيْهِ تُحْشَرُونَ﴾
“Oh
you who have Iman, respond to Allah and to the Messenger when he calls you to
that which gives you life. And know that Allah intervenes between a man and his
heart and that to Him you will be gathered.” [TMQ: Al Anfal: 24]
Written for the Central Media Office of Hizb ut
Tahrir by
Abdul
Majeed Bhatti
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