World IN BRIEF : EGYPT : Plan to Liberalize Economy Unveiled

Egypt unveiled sweeping measures to liberalize its economy. The forceful departure from 30 years of rigid central planning is intended to clear the way for further Western debt relief. The reforms, announced by Prime Minister Atef Sedki, include a partial currency flotation, a new sales tax, an overhaul of the public sector, support for state-owned banks and the opening of new areas for private investment. The International Monetary Fund had demanded the reforms before considering an accord on debt relief and new loans. Western countries pledged to cancel some of Egypt’s $36-billion foreign debt for its support of the U.S.-led alliance in the Gulf War if Cairo agreed with the reforms.