The Egyptian government has outlined a new economic plan to support its request for loans from the Washington-headquartered IMF.

The plan aims to stabilise the economy and narrow the budget deficit in an effort to stem the continuing political unrest seen in the country. Negotiations with the IMF are to resume in early March after reaching a standstill in late 2012.

The new government strategy plans to increase taxes on six commodities. It will also increase the threshold for income-tax exemption.

Fuel prices for energy-intensive industries will also be gradually increased.

Cairo wants the deficit to decline to 9.5 per cent by 2014.  

Negotiations with the IMF over a $4.9bn loan have become increasingly drawn out as Egypt’s political stability worsens and economy declines.

The country signed a stand-by agreement with the IMF last November. Egypt asked for a delay the following month, and decided to postpone a number of tax increases linked to the IMF loan.  

The new economic plan follows the announcement of the date for the parliamentary elections. The elections are to take place in late April, although opposition members are calling for the voting to be boycotted.

There have been continuing waves of social unrest in Egypt, with protesters voicing their frustration at the presidency of Mohamed Mursi. The latest riots took place at the Port Said, close to the Suez Canal.