Mohamed Ismail Abdo, head of the General Division for Medical Supplies at the Cairo Chamber of Commerce, announced the ongoing crisis of unpaid debts by the Unified Procurement Authority to companies in the medical supplies and pharmaceutical sectors. Despite an agreement on August 11 with Dr. Hesham El Metwally, head of the Unified Procurement Authority, on urgent measures including a new payment installment during the third week of August coordinated with the Ministry of Finance, the Authority has not yet fulfilled its commitments. This situation places the medical supplies sector in a difficult position, hindering its ability to serve millions of citizens visiting healthcare facilities daily.

The General Division for Medical Supplies will submit an urgent memorandum to Prime Minister Dr. Mostafa Madbouly, seeking his personal intervention along with that of Finance Minister Ahmed Kouchouk to implement the agreement. The Unified Procurement Authority’s debt to its network of suppliers from the medical supplies and pharmaceutical sectors has reached 43 billion Egyptian pounds, causing significant problems for companies and traders, especially with foreign suppliers. This has led to the halt of many production lines in medical supplies factories due to liquidity shortages caused by delayed payments, alongside banking issues as many companies struggle to meet their financial obligations.

Mohamed Ismail Abdo expressed confidence in the swift response of the Prime Minister and Finance Minister, emphasizing their commitment to supporting this vital sector that directly affects citizens’ lives. He hopes they will expedite the payment of dues to the medical supplies sector to prevent further escalation of problems and work on permanent solutions to avoid recurrence of debt accumulation.

The agreement with the Unified Procurement Authority includes a commitment to continue debt payments in installments during the current fiscal year. The Ministry of Finance will cover debts arising from free treatment provided by Ministry of Health centers and hospitals, which represent about 60% of the total Unified Procurement Authority debt, following the Prime Minister’s approval to increase the Authority’s allocations from 50 billion to 100 billion Egyptian pounds in the current fiscal budget.

The agreement also covers payment of the remaining 40%, related to economic treatment provided by the Health Insurance Authority, the Comprehensive Health Insurance Authority, and university hospitals and centers, through their respective budgets, with full settlement expected by the end of the current fiscal year.