The government has announced a 4-month suspension of passenger car purchases as part of an effort to streamline expenditures.

Prime Minister Dr. Mostafa Madbouly issued Resolution No. 241 of 2024, outlining measures to rationalize investment spending in ministries and government agencies within the state’s general budget.

The decision encompasses five key measures, including refraining from contracting the purchase of passenger cars for ministries and agencies until June 30 of the coming year.

Additionally, the resolution prohibits the initiation of any new projects included in the plan for the current or preceding year. Contracts for these projects, whether through direct orders or public tenders, are barred until June 30, 2024.

The resolution also entails a reduction in financing for the public treasury in the investment plan for the fiscal year 2023/2024. Exceptions are made for entities with availability rates exceeding 50%, following executive procedures by the Ministry of Planning in line with the Council of Ministers’ decision during its 265th session on November 22, 2023. This applies to the Ministry of Interior and its affiliated bodies, the Ministry of Defense and its affiliated bodies, and the Ministry of Health and Population.

Furthermore, entering into contracts for external financing or commencing projects, even through local components, will involve loans or additional foreign components.

No new projects will commence in the current year, with priority given to completing projects reaching 70% or more implementation. These projects are expected to conclude during the fiscal year 2022/2023.