The Ismail government plans to more than double subsidies for exporters to EGP 6 bn in the FY2016-17 budget, up from a current EGP 2.7 bn, said Trade and Industry Minister Tarek Kabil. The proposal, which would meet a perennial request from industry, now awaits parliamentary approval. Kabil added that the government is now focusing on increasing exports as a means to reducing the trade deficit, Al Borsa reports. Industry associations including the Federation of Egyptian Industries (FEI) have been heavily lobbying the government for the top-up, with FEI chief Mohamed El Sewedy — who is also the chairman of the House Industry Committee — saying last month that House of Representatives will push for the fund to increase to EGP 10 bn. The Trade and Industry Ministry has also allocated EGP 400 mn to implement its strategy to promote small- and medium-size business, with at least part of the new allocation being drawn from the increase in the export subsidy fund, said Kabil at a meeting of the Egyptian National Competitiveness Council. The SME Caretaker Act, meant to facilitate credit for SMEs, will be presented to the cabinet and has been reviewed by the CBE and Finance Ministry, he added, according to DNE. Kabil said the bill will be put up for “national dialogue” next week.

…Kabil also stated that the government’s trade policies had saved the country USD 2.8 bn in import costs in 1Q2016 and led to a USD 200 mn increase in exports, a sign that it is moving in the right direction, Al Masry Al Youm reports. (Al Mal, on the other hand, quoting Kabil as saying that imports fell USD 210 mn in 1Q2016.)