Posted in: Sunday, September 11, 2022 – 7:35 PM | Last update: Sunday 11 September 2022 – 7:35 PM
How can we solve the dilemma of the necessity of saving hard currency by limiting imports, and at the same time not closing many factories because of the prevention of importing many goods?!
I raise this question because there are increasing complaints from some manufacturers, who say that it may lead to the closure of their factories, and thus more unemployed and the result is a huge loss for the national economy.
I know for sure that the issue is not easy, and there is no magic solution for it or just a decision taken by the government. Therefore, we have to think calmly and deeply in order to reach a solution that guarantees the greatest possible interest for everyone, factory owners and workers, the government, and thus the entire national economy.
No one disputes the necessity and importance of restricting imports of non-essential, recreational or provocative goods, as some put it.
But who determines that this commodity is necessary, so we import it, and unnecessary, so we prevent its import?
Importing grain or intermediate commodities to operate a factory that produces basic commodities such as oil, sugar or soap is necessary, and importing products to feed dogs and cats is not necessary at all because there are many local alternatives, but the problem lies in those commodities that some may disagree on, and whether they are necessary or No, or it is really necessary, but the people in charge of the approvals don’t realize that.
In recent weeks, I’ve heard a lot of stories, all regarding those banned or slowed-down goods that fall into that middle gray area, and sometimes even executives don’t even realize that they’re important and necessary for the industrial sector.
One of the cheese factories imports a certain material from abroad to package this type, here we are not talking, as the owner of this factory told me, regarding shoes of an international brand, the price of which is a thousand dollars, so we prevent it from being imported. employment.
Another factory produces everything related to paper used in packaging for many products such as medicines and cartons, but it needs a specific technical spare part, so importing it will be stopped. For example, this piece costs ten thousand dollars, but it causes a halt in production for two months, and an export loss of millions of dollars.
Any loyal patriot, even if the owner of the factory fully understands that there is a shortage of dollars in most of the region and not only in Egypt, but this dilemma must be solved, because the price is high for everyone, which is that some factories are forced to stop due to the lack of many commodities necessary for the work of these factories.
Once once more, a sane person does not agree to import unnecessary goods, in order to preserve the hard currency, but what we need is for those in charge of reviewing import applications to be specialists and understand the nature of different goods and industries, and the question is: Do we have qualified and sufficient experts to review all import applications?!
The issue is not only related to these two proverbs, ie cheese and paper, but to many industries.
Therefore, we are in dire need of experts and officials in these committees who are able to measure every decision in this field with the “manipulator”. The problem is that some of those in charge of making these decisions are difficult to ask them to be specialists in all fields and imported goods and equipment and how important or not they are to the national economy.
We need to review things calmly, not to undo a certain decision or not, but to discuss the impact of the decisions on reality, and did they actually stop and reduce the bleeding of hard currencies, or did they lead to the suspension of many factories and the increase in the number of unemployed?
I do not claim that I have an answer to this question, but it is important that there be a governmental committee in cooperation with the Central Bank, experts, the Federation of Industries and all those who are interested, to discuss the issue and reach solutions in the interest of the national economy, and not for one party at the expense of another.
There is a criterion, for example, that the decision is made on an objective basis, which is whether these goods, tools and requirements contribute to an increase in exports in dollars, or prevent the import of more goods in dollars. The story is not a cheese or paper factory, but what is the actual impact on the overall economic activity .. Did we benefit from it or harm us, and this is an objective rule that can be generalized to all sectors.
For objectivity, the government and the Central Bank have embarked in recent days on dealing with this problem.
