The Giza Chamber of Commerce announced its rejection of the cabinet decision to form a committee to establish profit margins for essential goods and commodities.
“The cabinet decision is a step backwards for the economy’s progress. It may cause a huge crisis in the markets during the coming period,” the chamber’s statement read.
In 9 October, the cabinet announced the establishment of a new committee, headed by Prime Minister Sherif Ismail, to set profit margins for essential goods and commodities, whether local or imported.
Head of the Giza Chamber of Commerce Adel Nasser said: “The government decision is not acceptable. It will have a negative impact, especially considering the current critical situation of Egypt’s economy.”
He added that this decision may lead to the creation of parallel market. The state has various tools that it can utilise to control the market. One of them is prohibition of imports on certain goods, thus facilitating the imports of essentials goods and commodities.
For Egypt’s economy, which is a free market economy, forcing compulsory quotations and pricing for goods is a step backwards, first secretary of the chamber Mohamed Embaby said. The quality and the supply and demand are the tools that control the price of any product, he added.