Egyptian PM Ismail resigns as President Sisi begins a second term

Egyptian Prime Minister Sherif Ismail has submitted his government's resignation to President Abdel-Fattah al-Sisi, the Egyptian presidential spokesman has said.

"The President assigned the government to act as caretaker and continue performing its duties until a new government is formed," presidential spokesman Bassam Rady said in a statement on Tuesday, Xinhua news agency reported.

The cabinet resignation came a few days after Sisi was sworn in at the parliament for a second four-year presidential term.

The Egyptian cabinet resignation is a traditional move in Egypt following a president's swearing-in.

Lawmaker Sayyid Abdel-Aal, head of leftist Tagammu Party, said that the president will name a prime minister and present it to the parliament or name a prime minister after consultation with the majority of the parliament.

"After naming the prime minister, the latter will name the cabinet ministers to expect for sovereign ministries, whose ministers are determined in consultation with the president," the lawmaker told Xinhua following the cabinet resignation.

The Egyptian government continues a strict, austerity-based three-year economic reform program which started in late 2016, including local currency liberalization followed by fuel and energy subsidy cuts and tax hikes to contain a budget deficit, promote local production and boost foreign investment.

Abdel-Aal didn't expect major changes in economic ministries.

"The new government will have to be committed to the economic policies already approved by the parliament and reflected in the new general budget," said the parliamentarian.

Egypt's most recent cabinet reshuffle took place in January. It was partial and it included the four ministers of culture, tourism, local development and public enterprise.