CAIRO—Turkey will provide a $2 billion aid package to help Egypt finance infrastructure projects and increase its dwindling foreign currency reserves, Egypt's Minister of Finance said Saturday.

Egyptian financial policy makers have embarked on an aggressive effort over the past several months to solicit foreign assistance and investment in the hopes of mending a gaping budget and foreign currency reserve deficit.

Egypt's budget deficit in the fiscal year that began July 1 could exceed $20 billion, or about 8% of the country's gross domestic product.

Essam El Haddad, assistant president for external relations and international cooperation, signed the deal Saturday in Istanbul, Turkey's commercial capital, according to a statement from Egypt's Ministry of Finance.

Turkey's state-run news agency reported that Ankara extended the $2 billion loan after Turkish Deputy Prime Minister Ali Babacan on Saturday met with Mr. El Haddad, in Istanbul.