Page 7 - Imf

IMF urges Pakistan to invest Rs 1.2 trillion a year for climate resilience

The International Monetary Fund (IMF) has urged Pakistan to invest one per cent of its GDP annually equivalent to over Rs 1.24 trillion based on current estimates in climate resilience and adaptation reforms to prepare for recurring extreme weather events, particularly floods, a media report said on Thursday. In a special policy advisory, the IMF noted that ongoing reforms under the Extended Fund Facility (EFF) including fiscal, labour market, trade, and state-owned enterprise (SOE) reforms could boost Pakistan's growth by 2 per cent over five years while significantly reducing inequality, Dawn newspaper reported. The Fund also highlighted that proactive investment in climate-adaptive infrastructure could reduce the negative growth impact of a natural disaster shock by one-third while ensuring a quicker and more complete recovery. The lender noted that about 1 per cent of GDP investment in adaptation infrastructure would increase Pakistan's climate resilience and buffer climate

Pakistan central bank announces $30 billion foreign debt repayments in FY25

Pakistan's central bank has said the country is scheduled to repay a total of USD 30.35 billion in maturing foreign debt and interest payment in this financial year even as the foreign debt repayments and interest payments are rising every passing year, a media repot said on Monday. The payments over the 12 months from August 2024 to July 2025 include those significant loans which bilateral creditors roll over every year, reported the Express Tribune quoting a JS Global report, which, in turn, cited data from the State Bank of Pakistan (SBP). The report showed that Pakistan is to repay maturing foreign debt worth USD 26.48 billion and pay another USD 3.86 billion on account of interest expense in the period. Pakistan's repayments and interest payments are fully secured under the latest USD 7 billion IMF Extended Fund Facility (EFF) through the loan period of 37 months. In terms of debt-to-GDP ratio, however, the foreign debt has dropped to 20.2 per cent in August 2024 from 27.6 per

US Treasury calls for new IMF, World Bank steps on liquidity pressures

The plan "will require hard work and innovation" at the international financial institutions, US Treasury official said

India urges action to reform financial systems for debt-free Global South

India has called for a concerted global effort to reform the international financial architecture to ensure debt sustainability and prevent debt traps for the Global South that has been disproportionately impacted by multiple crises. India's Permanent Representative to the UN Ambassador P Harish was addressing the 79th Session of the UN General Assembly on 'Fostering Resilience and Growth in an Uncertain World' on Tuesday when he drew attention to how development gains have gone off the rails, threatening progress towards Sustainable Development Goals (SDG) targets. A concerted global effort is required to reform the international financial architecture to ensure debt sustainability and prevent debt traps, provide access to affordable finance, and address inequalities in global trade and investment flows, Harish said. Highlighting the need for focussing on the issues of the most vulnerable, with the aim of leaving no one behind, Harish said, Empowering women and youth is the key to

Protests in Pakistan after govt raises taxes by 40% under IMF bailout

Prime Minister Shehbaz Sharif, whose coalition government has only been in power for seven months, is urging patience in a country that can no longer keep up

Committed to IMF's bailout package, hope to discuss terms: Sri Lanka govt

The new Sri Lankan government during its first meeting with the International Monetary Fund said it is committed to the global lender's USD 2.9 billion bailout package clinched by the previous Wickremesinghe regime and hoped to renegotiate certain conditions. The meeting between the IMF team and the Sri Lankan government on Wednesday came two weeks after President Anura Kumara Dissanayake of the National People's Power (NPP) was elected two weeks ago. The government team was represented by its economic council members headed by Prof A J Fernando, who was named as President Dissanayake's economic and finance advisor only two days ago. On September 23, Dissanayake, the leader of the Marxist Janatha Vimukthi Peramuna party's broader front, the NPP, was sworn in as Sri Lanka's ninth president, amid hopes that he will bolster the country's economy and eliminate corruption. The primary objective of the visit was to initiate discussions on the progress of the IMF Programme and necessary .

IMF 'too polite' on China policies, assurances: US Treasury official

IMF last week approved a $7 billion program for Pakistan that included financing assurances from China, Saudi Arabia and the United Arab Emirates, but declined to provide details on the assurances

IMF approves $7 billion loan for Pakistan: What does it mean? | Pakistan Economy

The International Monetary Fund (IMF)'s executive board has given the green light for a fresh $7 billion loan to Pakistan. What does it entail? Watch the video to find out.

IMF approves $7bn bailout for Pak, tranche of $1.1bn expected this month

The International Monetary Fund's board (IMF) on Wednesday approved a USD 7 billion Extended Fund Facility (EFF) for cash-strapped Pakistan, providing a critical boost to the country's struggling economy. The development was announced by the Prime Minister's Office (PMO) while a statement is expected from the IMF. The PMO said the premier expressed his satisfaction with the programme's approval. "The implementation of economic reforms is going on rapidly, he said, adding that the government would continue to work hard to achieve goals related to economic development after achieving economic stability. The prime minister said the increase in business activities and investment in the country was welcome and a testament to the hard work of the economic team, Dawn newspaper reported. Along with the successes on the diplomatic front, the increase in remittances from Pakistanis living abroad is a reflection of their confidence in the government's policies, he said, adding that the ...

Dissanayake's push for Sri Lanka economic change leaves IMF deal in limbo

Adding to the challenge, the prime minister's resignation on Monday meant the cabinet has been dissolved

IMF to start talks with new Lanka government led by President Dissanayake

The International Monetary Fund (IMF) on Tuesday said it will discuss the timing of the next review of Sri Lanka's loan programme and looks forward to working with the new government headed by President Anura Kumara Dissanayake. We look forward to working together with President Dissanayake and his team towards building on the hard-won gains that have helped put Sri Lanka on a path to economic recovery since entering one of its worst economic crises in 2022," the Washington-based lender said in a statement. Former president Ranil Wickremesinghe-led government was negotiating with the IMF for the release of the third tranche of the USD 2.9 billion facility when the presidential election was announced in July. The disbursement of around USD 360 million was anticipated after the third review which the IMF put on hold until the end of the election held last weekend. We will discuss the timing of the third review of the IMF-supported programme with the new administration as soon as ...

IMF surcharge burden on distressed countries calls for urgent reform

Surcharges neither ensure repayment nor protect IMF finances. Their main effect is to increase the burden of debt payments precisely when countries can least afford it

Forex reserves rise for 5th week, hit record high of $689.46 bn: RBI data

Foreign exchange reserves also include India's reserve tranche position in the International Monetary Fund

IMF to discuss $7 billion loan to cash-strapped Pakistan on Sep 25

The International Monetary Fund on Thursday said that its board will meet on September 25 to discuss the USD 7 billion Extended Fund Facility (EFF) to cash-strapped Pakistan. The loan package was agreed on July 12 when the two sides inked a staff level agreement but its formal approval was delayed due to failure of Pakistan to bridge external financing gap. However, chief of the State Bank of Pakistan, Jamil Ahmad, said the country had secured a commitment of USD 2 billion external financing, which had been a hurdle in the key Fund's meeting to endorse the 37-month EFF loan. Addressing a press briefing, IMF's spokesperson Julie Kozack said the Fund had reached a staff-level agreement with Pakistan in July. We are very happy that we can say now that the board meeting is scheduled to take place on September 25, she said. This is following Pakistan obtaining the necessary financing assurances from its development partners. The new EFF arrangement...follows the successful implementatio

Pakistan accepts IMF's condition to not establish new SEZs: Report

Pakistan has accepted the IMF condition that it would not establish any new special economic or export processing zone in the country as it waits for the approval of a USD 7 billion bailout package from the international money lender, a media report said on Wednesday. The Washington-based lender's condition will impact the government's plans to establish an export processing zone (EPZ) on a piece of land belonging to the closed Pakistan Steel Mills, The Express Tribune newspaper reported. The report quoted government sources as saying that the IMF had asked Pakistan that it would not create any new special economic zone (SEZ) or EPZ and tax incentives already availed by the existing zones will not be extended after expiry. While the condition will be applicable to both federal and provincial governments, Khyber Pakhtunkhwa has refused to accept it, the report said. The IMF's conditions underscore how deeply it has captured Pakistan's economic and industrial policies, which could ..

IMF pushes Kyiv on transparency after Ukrenergo chief Kudrytskyi's ouster

Kudrytskyi, who had worked closely with Ukraine's Western donors in efforts to shore up a power system decimated by Russian attacks, was ousted from the top job Sept. 2 by the supervisory board

World Bank follows IMF. Revises India's FY25 GDP growth forecast to 7%

The International Monetary Fund had earlier also raised India's growth forecast to 7 per cent for the financial year 2024-25 (FY25), following the conclusion of general elections in the country

Demand for work under MGNREGS drops for 10th consecutive month in August

Nearly 19 million individuals requested work under MGNREGS, showing a 17 per cent decrease compared to the same period last year

India to play prominent role in rule-making for fintech, DPI, says official

India has always been a "rule-taker" but it has a prominent role to play in rule-making in the fin-tech solutions and DPI area given that most of these technologies are made in the country, a senior diplomat said on Wednesday. Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs, said India wants to collaborate with the World Bank and the International Monetary Fund to help set standards for digital payments, blockchain technologies, and cyber securities. India is also trying to build and help countries in the global south with DPI (Digital Public Infrastructure). "For a long time, India has always been a rule-taker. We just complied with the rules made by the global community, largely driven by the Western nations. But in the fin-tech solutions, fin-tech technologies, and the DPI world, India has an eminent role to play in rule-making because most of the technologies are made in India," Ravi said while addressing Global Fintech Fest in Mumbai. The youth of Indi

Pakistan eyes $4 bn from West Asian banks to plug external financing gaps

Pakistan and the IMF reached an agreement on the loan program in July, subject to approval from the IMF's executive board