The aim of the structural reform is to raise the economy s competitiveness, make it more investment friendly and thereby hope to attract more investment particularly more foreign direct investment and technology. First we have an accelerated program of privatizing the non financial public sector. The second element is trade reform. The third aim is to strengthen the financial sector which involves further privatization of the banks especially joint venture banks. The fourth element of structural reform is deregulation which is how to provide Egypt with a more investment friendly climate .
Fiscal reform is the final pillar of structural reform.
The system should be transparent and you try to ensure that there is a proper combination of direct and indirect taxes. In the medium term, the aim is to have an improved system of income tax. Currently, tax rates are high, the tax base is narrow and there are a number of exemptions. So a rationalization of the income tax system is also part of the program. Trade liberalization and less tariff protection will no doubt have a negative effect on producers.