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FM Sitharaman pitches for strong, quota-based and adequately resourced IMF

Finance Minister Nirmala Sitharaman on Saturday made a case for a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net and climate action. The 16th General Review of Quotas (GRQ) is expected to provide greater say to developing economies in the International Monetary Fund (IMF). As per an IMF resolution, the 16th GRQ should be concluded by December 15, 2023. Any adjustment in quota shares would be expected to result in an increase in voting rights of emerging countries in line with their relative positions in the world economy. Participating in a breakfast meeting of the IMF Board of Governors on the theme of 'Dialogue on Policy Challenges' in Marrakesh, Morocco, Sitharaman expressed concerns with regard to slowdown in global growth. However, she said, India continues to be the fastest growing large economy with a growth of 7.8 per cent during the first quarter of 2023-24. With regard to escalating global debt vulnerabilities, she ...

Pakistan's railway upgradation project under CPEC subject to IMF approval

One of Pakistan's key railway modernisation projects planned to be built under the China-Pakistan Economic Corridor (CPEC) is in trouble due to the IMF's conditions regarding sovereign guarantees, according to a media report on Saturday. The Main Line-1 (ML-1) aimed to modernise over 1,726 kilometres of colonial-era rail line stretching from Karachi to Peshawar remains subject to IMF approval and the finance ministry's ability to provide sovereign guarantees for a USD 6.67 billion loan from China, even though the project's budget has been cut by 32 per cent, reported the Dawn newspaper. The CPEC is a collection of infrastructure and other projects under construction throughout Pakistan since 2013. Pakistan had secured a last-gasp USD 3 billion bailout from the International Monetary Fund (IMF) on June 30, which later disbursed an initial upfront instalment of about USD 1.2 billion. The debt-trapped nation had given the IMF assurances of USD 8 billion for external payments. A senio

G20 finance ministers and central bank governors adopt crypto road map

Briefing reporters in Marrakesh, Finance Minister Nirmala Sitharaman said the roadmap on crypto assets is the big step forward that came from the FMCBG discussion

India needs structural reforms to achieve higher growth levels: IMF

In response to another question on the impact of a sharp increase in bond yields on emerging markets, Srinivasan said that both the public and private sectors should be careful while borrowing

IMF calls for urgent support from members to increase its quota resources

The IMF said the global economy has shown resilience, but the recovery is slow and uneven

IMF, World Bank urged to boost funding for African nations facing conflict

Many poor countries in Africa face the harshest effects of climate change: severe droughts, vicious heat and dry land, but also unpredictable rain and devastating flooding. The shocks worsen conflict and upend livelihoods because many people are farmers work that is increasingly vulnerable in a warming world. Climate challenges are at the root of vulnerabilities faced by conflict-ridden countries in Africa's Sahel region, such as Burkina Faso, Chad, Mali, Niger and northern Nigeria, experts say. Adapting to these challenges could cost up to USD 50 billion per year, according to the Global Commission on Adaptation, while the International Energy Agency estimates the clean energy transition could cost as much as USD 190 billion a year overwhelming costs for Africa. Countries have limited space in their budgets, and borrowing more to fund climate goals will worsen their considerable debt burdens, argue African leaders, who are seeking a rapid boost in financing. Some leaders suggest

IMF projects inflation, growth risks if Israel-Hamas conflict widens

It's a bit early to know the full implications of the conflict, and much will depend on whether it draws in other countries, Gita Gopinath said

India's debt to GDP ratio to peak at 82.3% in FY25, fall in FY29, says IMF

The IMF's present estimates mark a notable deviation from its April projections

India keen to engage with IMF to purse G20 agenda on resource mobilisation

Finance Minister Nirmala Sitharaman on Wednesday expressed India's keenness to engage with IMF to work with developing countries in facilitating domestic resource mobilisation as endorsed by G20 leaders. Last month, G20 New Delhi Leaders' Declaration urged IMF and the World Bank, in coordination with other relevant international institutions, to support efforts at enhancing domestic resource mobilisation in emerging market and developing economies (EMDEs). During the meeting with International Monetary Fund (IMF) managing director Kristalina Georgieva on the sidelines of the Annual Meetings of IMF-WB, in Marrakech, Morocco, Sitharaman thanked IMF for support during the G20 India Presidency, including Digital Public Infrastructure (DPI) related work and promotion for tech-driven economic growth and productivity gains. She also appreciated IMF's role with regard to policy work for crypto assets and the related G20 roadmap for global coordination within and beyond G20 countries, the .

FM Sitharaman stresses on need for IMF to remain well capitalised

Finance Minister Nirmala Sitharaman on Wednesday participated in a roundtable discussion on 'IMF policy priorities and how the institution should support its membership' and underlined the need for the institution to remain well-capitalised to meet future challenges. The roundtable was hosted by US Treasury Secretary Janet Yellen on the sidelines of the World Bank-IMF Annual Meetings in Marrakech, Morocco. Sitharaman spoke about IMF's mandate and lending policies, a strong, quota-based, and adequately resourced IMF, Poverty Reduction and Growth Trust (PRGT) Financing and IMF governance reforms, the finance ministry said in a statement. Sitharaman drew attention to India's G20 Presidency's focus on the importance of multilateralism to move towards coordinated and consensus-based solutions to global challenges. She highlighted that in line with the evolving needs of the membership, the IMF's primary focus needs to be macroeconomic surveillance and policy guidance, it said. She ...

India has high debt like China, but risks are moderated: IMF official

India has a high debt like that of China but the risks associated with it are not as great as that of its northern neighbour, a senior official from the International Monetary Fund has said, advising India in the medium term to have an ambitious fiscal consolidation plan that brings down deficits. "The current debt in India is also high. It stands at 81.9 per cent of GDP. Compared to China, which is 83 per cent, it is very similar. Also, when we compare India's debt to the pre-pandemic level in 2019, it was 75 per cent. So it is still quite a bit higher," Ruud de Mooij, Deputy Director, Fiscal Affairs Department at International Monetary Fund, told PTI in an interview. "What we also see in India is a deficit that is 8.8 per cent projected for 2023. In India, a large portion of this is because of expenditures on interest. They pay a lot of interest on their debt: 5.4 per cent of GDP is spent on that, and the primary deficit is 3.4 per cent. So together they add up to 8.8 per cent," he

India expected to become $30-trillion economy by 2050: Chakraborty

India is expected to become a USD 30-trillion economy by 2050 pushed by robust consumption and exports, HDFC Bank chairman and former economic affairs secretary Atanu Chakraborty said on Wednesday. International financial institutions have projected India's growth to be around 6.3 per cent this year and inflation at about 6 per cent, so nominal GDP would be around 10-12 per cent, he said. "If this kind of pace continues for some year, it will make India a USD 30-trillion economy by 2045-50 with per capita income of USD 21,000," he said at an event organised by KPMG here. International Monetary Fund (IMF) on Tuesday raised India's GDP projection marginally by 0.2 per cent to 6.3 per cent even as it slashed the global growth forecast to 3 per cent. IMF in July had estimated India's GDP forecast at 6.1 per cent for 2023-24. However, this is lower than the RBI's latest estimate of 6.5 per cent for the current financial year. Last week, the World Bank retained India's growth forecast a

IMF raises India FY24 GDP growth forecast by 20 basis points to 6.3%

Agency keeps global growth forecast unchanged at 3% for 2023, says economic activity still 'short of pre-pandemic path'

IMF's world economy outlook worsens, Middle East war poses new uncertainty

The world economy has lost momentum from the impact of higher interest rates, the invasion of Ukraine and widening geopolitical rifts, and it now faces new uncertainty from the war between Israel and Hamas militants, International Monetary Fund warned Tuesday. The IMF said it expects global economic growth to slow to 2.9 per cent in 2024 from an expected 3 per cent this year. The forecast for next year is down a notch from the 3per cent it predicted back in July. The deceleration comes at a time when the world has yet to fully mend from a devastating but short-lived COVID-19 recession in 2020 and now could see fallout from the Middle East conflict particularly to oil prices. A series of previous shocks, including the pandemic and Russia's war in Ukraine, has slashed worldwide economic output by about USD 3.7 trillion over the past three years compared with pre-COVID trends. The global economy is limping along, not sprinting," IMF chief economist Pierre-Olivier Gourinchas said at a

IMF warns of stubborn inflation and weaker global growth in the coming year

In most countries, the IMF, an institution charged with monitoring the health of the global economy, foresees inflation remaining above central bank targets until 2025

IMF, World Bank pledge Africa focus at 1st meetings on continent in 50 yrs

In the shadow of a deadly earthquake in Morocco that caused nearly $12 billion in damage, the world's most powerful economic policymakers said they would focus on Africa as they work to grow and stabilising the global economy during times of war, inequality and climate change. The International Monetary Fund and World Bank are holding their annual meetings in Africa for the first time in 50 years as they face a growing chorus of criticism that poorer nations are underrepresented at the two institutions. Both have recently said they plan to give Africa additional seats on their executive boards. The conference theme was clear Monday during the gathering in Marrakech, although definitive details had yet to be discussed. We're here, Africa, IMF Managing Director Kristalina Georgieva said on a panel with African entrepreneurs. Often lenders of last resort, the IMF and the World Bank use billions in loans and assistance to buoy struggling economies and encourage countries operating in ..

Israel-Hamas conflict may add uncertainty to IMF's growth projections

The IMF on Sunday said it was closely monitoring developments in Israel and Gaza, and it was too early to assess any economic impact

FM to attend World Bank-IMF meet, G20 FMBCBG in Morocco from Oct 11

Finance Minister Nirmala Sitharaman will embark on a six-day official visit on Tuesday to Marrakech, Morocco, to attend the World Bank-International Monetary Fund annual meet, along with the G20 FMCBG meeting. Besides, bilateral meetings with Indonesia, Morocco, Brazil, Switzerland, Germany and France are scheduled to take place on October 11-15, 2023, in Marrakech. The Indian delegation for the annual meetings will be led by the Finance Minister, and comprise officials from the Ministry of Finance and the Reserve Bank of India, an official statement said on Monday. During the visit, it said, Sitharaman and RBI Governor Shaktikanta Das will co-chair the fourth G20 Finance Ministers and Central Bank Governors (FMCBG) meeting. The G20 FMCBG meeting under India's presidency will witness the participation of 65 delegations from G20 countries, invitee countries, and international organisations in multilateral discussions centred around a broad spectrum of important global issues, it ...

Morocco welcomes annual meeting of IMF, WB a month after its deadly quake

Less than a two-hour drive from where families sleep in tents and earthquake rubble remain in piles, the world's most powerful financial institutions are gathering for a week of discussions on economic challenges during times of war, inequality and climate change. The International Monetary Fund and World Bank decided in 2018 to host their annual meeting in Marrakech, Morocco, bringing the affair to the African continent for the first time in 50 years. Their original timeline was delayed by the pandemic, but the meeting beginning Monday arrives at an apropos time. After a devastating earthquake last month killed nearly 3,000 and wreaked USD 11.7 billion in damages, both officials and civil society groups are eagerly anticipating discussions about how to promote economic resiliency in light of natural disaster. In no other area is the need for international cooperation as evident as in addressing the existential threat of climate change. The world has a responsibility to stand with

Upcoming Pak govt would carry on economic plan of previous regime: Dar

In June, the IMF announced that the Pakistan and IMF reached a long-awaited staff-level agreement (SLA) on a USD 3 billion "stand-by arrangement" (SBA)