CAIRO, July 17 (Xinhua) -- The Egyptian government named on Tuesday the first five state-owned companies that will offer some of their shares in the Egyptian Stock Exchange for partial privatization, the cabinet said in a statement.

Prime Minister Mostafa Madbouli announced state-owned Eastern Tobacco Company, Alexandria Container and Cargo Handling Company, Alexandria Mineral Oils Company, Abu Qir Fertilizers Company and Heliopolis Company for Housing and Development to be the first in the partial privatization plan.

Madbouli's announcement came during a meeting with some cabinet ministers and senior officials where they discussed "the executive procedures to offer part of the shares of the state-owned companies in the bourse."

"The share offering program is one of the government's tools that aim to improve company governance, boost the stock exchange and increase its market capitalization, and expand ownership base that would attract foreign investment," Madbouli said.

The Egyptian prime minister stressed that the move also seeks to "provide income resources for the state budget and encourage state-owned companies to use the bourse as a source of finance," noting that the program is instructed by President Abdel-Fattah al-Sisi.

Egypt has been suffering economic recession over the past few years due to political instability and relevant security challenges.

To contain the dollar shortage and reduce the budget deficit, the country devaluated its currency in November 2016 as part of a strict three-year economic reform program based on austerity measures, including fuel and energy subsidy cuts and tax hikes.

The liberalization of the Egyptian pound's exchange rate encouraged the International Monetary Fund (IMF) to support Egypt's economic reform plan with a loan of 12 billion U.S. dollars, two thirds of which has already been delivered to the most populous Arab state.