Page 5 - International Monetary Fund

Pakistan's FM Aurangzeb sees 'encouraging' reply from China debt talks

Pakistan is seeing a period of stability after securing a new $7 billion loan program from the IMF

Global fight against high inflation is 'almost won': IMF chief economist

The global war against inflation has largely been won and at surprisingly little cost to economic growth, the International Monetary Fund declared Tuesday. In its latest assessment of the global economy, the IMF predicted that worldwide inflation will cool from 6.7% last year to 5.8% this year and to 4.3% in 2025. It estimates that inflation will fall even faster in the world's wealthy countries, from 4.6% last year to 2.6% this year and 2% the target range for most major central banks in 2025. The slowdown in inflation, after years of crushing price increases in the aftermath of the pandemic, led the Federal Reserve and the European Central Bank to cut interest rates this year after they had aggressively raised them to try to tame inflation. The battle against inflation is almost won,? Pierre-Olivier Gourinchas, the IMF's chief economist, told reporters Tuesday. In most countries, inflation is hovering close to central bank targets.? Inflation had accelerated when the world ...

IMF, WB meetings clouded by wars, slow economic growth, US election

The International Monetary Fund and World Bank annual meetings are scheduled to draw more than 10,000 people from finance ministries, central banks and civil society groups

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

IMF's new demand set to dissuade Chinese investments into Pakistan

The IMF's condition comes as Prime Minster Shehbaz Sharif is trying to convince Chinese companies to shift more industries into Pakistan thereby giving a fresh momentum to projects

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 .

Sri Lanka's new president faces uphill battle to revive debt-ridden economy

Sri Lanka's new president faces uphill battle to revive debt-ridden economy

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 team to hold talks with Sri Lanka govt on loans for economic recovery

A high-level team of the International Monetary Fund will arrive in Sri Lanka on Wednesday to meet the new government headed by President Anura Kumara Dissanayake and discuss the latest economic reforms supported by the global lender. On September 24, the IMF said that they would begin talks with the new Lanka government led by President Dissanayake. The global lender said it will discuss the timing of the third review of its ongoing economic reform under a 48-month loan. Former president Ranil Wickremesinghe-led government was negotiating with the IMF for the release of the fourth tranche of the USD 2.9 billion facility. A high-level team led by Krishna Srinivasan, Director for the Asia Pacific Department will be visiting Colombo October 2-4 to meet with President Dissanayake and the new economic team to discuss the latest economic developments and economic reforms under Sri Lankas economic programme supported by the IMF," a release said. This will be the National People's Power .

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 ...

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

ADB assures cash-strapped Pakistan $2 billion in new loans annually: Report

The Asian Development Bank has assured Pakistan it will provide USD 2 billion annually in new loans to the cash-strapped country amid the government's inability to get cheaper credit due to its worsened ratings, according to a media report on Tuesday. The assurance was given by the visiting Asian Development Bank (ADB) President Masatsugu Asakawa during his interaction with Pakistani authorities on Monday, The Express Tribune newspaper reported, citing Ministry of Economic Affairs officials. The Manila-based lender is expected to provide USD 2 billion per annum from 2024 to 2027, the officials said, adding that the total four-year package amounts to USD 8 billion. Out of the USD 2 billion, the ADB will give around USD 1 billion at a fixed 2 per cent rate under its concessional window. Despite having reached a staff-level agreement with the International Monetary Fund (IMF), Pakistan has become a desperate borrower in recent years, striking deals at unsustainably higher interest rate

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, Ukraine reach deal that would give access to $1.1 bn in financial aid

The IMF is a key international lender to Kyiv and its four-year $15.6 billion programme is a crucial part of a bigger global economic support package to Ukraine

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

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

India's GDP growth slowed down to six-quarter low of 6% in Q1 FY25: ICRA

The credit rating agency expects India's GDP to grow by 6.8 per cent for the full fiscal year 2024-25, lower than the 8.2 per cent achieved in 2023-24

Centre has done far better in reforms, states need to pull up: Subramanian

It is time now that state governments also work hard in giving us reforms, good policies, not just freebies, he added

Making good progress with IMF to get board approval: Pak finance minister

Pakistan is in talks with Saudi Arabia, the United Arab Emirates and China to meet gross financing needs under the IMF programme