CAIRO - Egypt's cabinet approved regulations on Wednesday that would abolish many tax and fee exemptions for state-owned enterprises, fulfilling a key condition the IMF set in a $3 billion agreement signed a year ago.

The cabinet approved the law in June but had yet to draw up the executive regulations needed for implementation.

The International Monetary Fund in a $3 billion financial support agreement signed in December 2022 urged Egypt to level the playing field between the private and public sectors.

The agreement fell into abeyance after Egypt did not follow through on other commitments, including allowing its currency to move in response to market forces, to move quickly to sell state assets and to reduce the government's role in the economy.

The new regulations "apply to all investment or economic activities undertaken by state agencies." These include "units of the state administrative apparatus, local administration units, national public, service and economic bodies and agencies that have special budgets," the cabinet said in a statement.

The regulations do not apply "to military work and the requirements for defending the country or protecting national security," the cabinet statement said.

(Reporting by Momen Saeed Atallah; Writing by Patrick Werr; Editing by Bill Berkrot)