Page 11 - International Monetary Fund

IMF warns US default would have 'serious repercussions' worldwide

Potential consequences from a US default would include higher interest rates and broader instability, IMF spokeswoman Julie Kozack said in a briefing Thursday

Pak needs significantly more financing for successful bailout review: IMF

The United Arab Emirates, Saudi Arabia and China came to Pakistan's assistance in March and April with pledges that would cover some of the funding deficit

IMF team flags risks to Bangladesh economy as reserves fall further

The IMF will conduct the first review of its Extended Credit Facility, Extended Fund Facility and Resilience and Sustainability Facility arrangements later this year, the press release said

IMF negates cash-strapped Pakistan govt's claim of meeting loan conditions

The IMF has rejected the cash-strapped Pakistan government's claim that it has met all the conditions to reach an agreement with the global financial body to release funds under an already agreed loan facility, according to a media report. The International Monetary Fund signed a deal in 2019 to provide USD 6 billion to Pakistan on fulfilment of certain conditions. The plan was derailed several times and the full reimbursement is still pending due to insistence by the donor that Pakistan should complete all formalities. Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar have repeatedly claimed that Pakistan met all the prior conditions agreed for reaching a staff-level agreement and there was no reason for holding back the agreement. The Express Tribune newspaper reported that it got a statement from the fund on Friday, negating the claim made by the government with respect to meeting all prior actions necessary to complete the 9th review. The IMF continues to work with

World Bank estimates decline in Pakistan's GDP per capita income to $1,399

The World Bank has estimated a drop in GDP per capita income for Pakistan from USD 1,613.8 in 2021-22 to USD 1,399.1 in 2022-23, Business Recorder reported.In its report 'Macro Poverty Outlook for Pakistan: April 2023', the bank noted that GDP per capita growth is estimated at -1.5 per cent in 2022-23 in comparison to 4.2 per cent in 2021-22. World Bank has cut Pakistan's GDP forecast to 0.4 per centThe unemployment rate in Pakistan is estimated to rise from 10.2 per cent in 2022-23 to 10.1 per cent in 2021-22. Poverty will inevitably rise with pressures from weak labour markets and high inflation, as per the Business Recorder report.In the absence of higher social spending, the lower-middle-income poverty rate is expected to rise to 37.2 per cent in FY23. Considering poor households' dependency on agriculture and small-scale manufacturing and construction activity, they remain vulnerable to economic and climate shocks.Gross investment is estimated to reduce to 106 per cent in 2022-23

India to chair Commonwealth group on reform of financial architecture

Finance ministers from various Commonwealth countries have called for a systemic reform of the global financial architecture to enhance access to development financing for vulnerable countries

Why climate change makes GDP unsuitable for measuring economic churn

GDP does not capture issues like welfare, inequality and human development. Nor does GDP capture the damage to the environment caused by economic activity, writes T N Ninan

IMF sees India's combined debt-to-GDP ratio rising for 4 yrs starting FY24

In its latest Fiscal Monitor report, IMF said India's combined debt-to-GDP ratio will rise a tad to 83.2% in FY24 and will hit a high of 83.8% in FY27 before it starts to moderate

IMF slashes Pakistan's growth rate to 0.5% for FY23 amid high inflation

The IMF has lowered its forecast for Pakistan's economic growth rate from 2 per cent to just 0.5 per cent for the current fiscal year, amid high inflation and a growing unemployment rate in the cash-strapped country. This showed an unambiguous deterioration of economic fundamentals over the last six months since October when the IMF forecast the country's gross domestic product to grow by 3.5 per cent against 6 per cent for 2022 ago and inflation at 20 per cent against 12.1 per cent. The revision in Pakistan's growth prospects is in line with similar 0.4 per cent and 0.6 per cent projected last week by the World Bank and the Asian Development Bank, respectively. They also projected inflation at 29.5 per cent and 27.5 per cent respectively for the current year, the Dawn newspaper reported on Wednesday. In its flagship World Economic Outlook (WEO), the IMF has also estimated the unemployment rate in Pakistan to rise to 7 per cent against 6.2 per cent last year. For fiscal 2024, ...

China will support Sri Lanka's debt rework, says Central bank governor

The IMF on March 20 approved a $3 billion loan for the island nation to help bail it out of the worst economic crisis in decades

IMF warns it's too soon to sound all-clear on global financial turmoil

While forceful actions by policymakers to a series of bank collapses have reduced investor anxiety, the financial markets remain fragile and stressed, the IMF said

FM Nirmala Sitharaman to attend Spring Meetings of IMF-World Bank

She will also participate in G20 Finance Ministers and Central Bank Governors meetings

FM to embark on US tour from Monday, to attend World Bank Group, IMF meets

She will also be attending the G20 meetings and other associated meetings, which are scheduled to take place from April 10 to April 16

IMF deal well on track, assures Pakistan Finance Minister Ishaq Dar

Pakistan's Finance Minister Ishaq Dar on Saturday assured a jittery nation that the much-delayed ninth review of the USD 7 billion IMF programme was well on track, a day after he cancelled his visit to Washington for the spring meetings of the IMF and World Bank. Cash-strapped Pakistan and the IMF have failed to reach a staff-level agreement on the much-needed USD 1.1 billion bailout package aimed at preventing the country from going bankrupt. The funds are part of a USD 6.5 billion bailout package the IMF approved in 2019, which analysts say is critical if Pakistan is to avoid defaulting on external debt obligations. The only hitch for the IMF deal to go through was the confirmation of a USD 1 billion commitment from a friendly country, Dar said in his address to the nation. In the past two weeks, one of our friendly countries has again given them (the IMF) the confirmation [of its commitment to help Pakistan] with USD 2 billion. We are now only awaiting the confirmation of a USD

How reward-driven are top-level appointments to World Bank and IMF?

Opinion is divided on the issue, with one section of experts and seasoned politicians claiming meritocracy isn't always at play, while another puts the choice down to plain pragmatism

India's journey a lesson for other countries on digital transformation: IMF

According to the paper, for a diverse country like India, a building block approach provides those closer to the problem with the basic tools to create tailored solutions

IMF warns five-year global growth outlook is weakest since 1990

For 2023, global gross domestic product will likely expand by less than 3%, she said. That's in line with the fund's January forecast of 2.9%

You make the tea or the tea makes you?

Move over Reserve Bank of India. It's the commercial banks, which are creating money and moving the economy

Sri Lanka key rate 2-decade high at 16.5% after clinching IMF loan

The Central Bank of Sri Lanka kept the standing lending facility rate unchanged at 16.5%, according to a statement on its website on Tuesday

Currency dealers offer $24 bn in loans to Pak to stay away from IMF package

Currency dealers in open market in Pak have offered loans of $24 billion to the government for the next two years to help it stay away from the International Monetary Fund (IMF) programme