The Government of Egypt has denied all the reports of selling local spinning and weaving factories to international investors.
The denial was made in a statement released by the Ministry of Public Business Sector on 9 May 2019.
Stating the reports as baseless, the Ministry said that the Government was committed to not only help the spinning and weaving industry grow but also restructure its management companies.
The Ministry added that the Government was working on a comprehensive plan to develop the spinning and weaving industry at an estimated cost of US $ 1.2 billion over a period of two and half years.
According to the Ministry, the Government understands the importance of textile sector for Egypt and with this regard, the aforementioned plan majorly aims at increasing the existing production capacity of the factories by four times.
The reports of Government planning to sell spinning and weaving factories to finance residential towers and other big projects went viral on social media thereby catching world attention.
The Government officials said that around 1,500 textile factories were facing losses due to increase in prices of goods as well as tough competition from other countries and the Government is keen to bring back the industry to its glorious days.