Middle East & Central Asia News
LAST UPDATE: May 28, 2025
IMF: Egypt Making Progress on Reforms but Must Widen Tax Base
The International Monetary Fund (IMF) acknowledges Egypt’s significant progress toward achieving macroeconomic stability and reforming tax and customs processes but emphasizes the need to broaden the tax base to sustain revenue growth.
Insight
Egypt’s advancements in economic reforms have led to improved growth forecasts and fiscal performance. However, the IMF highlights the importance of expanding the tax base and reducing tax exemptions to ensure long-term fiscal sustainability. These measures are crucial for increasing domestic revenue, reducing dependency on external financing, and creating a more equitable tax system. Continued structural reforms will be essential for Egypt to achieve its economic objectives and maintain investor confidence.
Iran might accept U.S. IAEA inspectors if nuclear deal reached
Iran’s nuclear chief, Mohammad Eslami, announced that Iran may permit American inspectors from the International Atomic Energy Agency (IAEA) to access its nuclear sites if an agreement is reached with the United States.
Insight
This potential concession indicates Iran’s willingness to engage in diplomatic negotiations concerning its nuclear program. Allowing U.S. inspectors could enhance transparency and build trust between the two nations. However, Iran maintains that its uranium enrichment activities are for civilian purposes and considers them non-negotiable. The success of these talks will depend on both parties’ flexibility and commitment to reaching a mutually acceptable agreement.
