New opportunities for fundamental economic reform came during the Gulf War which provided Egypt with substantial debt relief and additional economic assistance. After signing agreements with the IMF and the World Bank in 1991, Egypt embarked on a serious reform effort. Overall, policy reforms under this third phase continue to introduce greater competition and efficiency in the financial sector, reduce trade barriers, accelerate privatization, and focus needed attention on Egypt's environmental problems. These reforms have, among other things, introduced greater competition and efficiency in the financial sector, reduced trade barriers, accelerated privatization, and focused needed attention on Egypt's environmental problems. The reform process requires a thorough understanding of past, present and future linkages to ensure reforms are well thought out before they are adopted and implemented.
Technical analyses are the lifeblood of the reform process.
Various stamp tax duties and capital gains tax charges previously imposed on financial transactions have been abolished. The GST has replaced customs as the second most important source of tax revenues. Telecommunications networking of an initial 25 sales tax district offices is in progress. The capacity to design, develop and deliver training courses and materials of high quality has been institutionalized. Economic Research Departments have been established in the office of the Minister of Finance, the Tax Department and Sales Tax Department.