Page 8 - World Bank

Maldives faces high debt distress risk, financing challenges: World Bank

Highlighting that the Maldives has been spending beyond its means for decades, the World Bank has warned that the archipelagic nation faces high debt distress risk and financing challenges, making it vulnerable to shocks. World Bank Country Director for the Maldives, Nepal, and Sri Lanka Faris H Hadad-Zervos also said that the island nation's annual debt servicing needs are likely to be USD 512 million for the current and following years, and another USD 1.07 billion in 2026. Hadad-Zervos's statement, posted on his official X account, comes days after the Ministry of Finance here said that the public and publicly guaranteed debt is almost 110 per cent of Maldives' GDP. The heavily tourism-dependent nation had suffered badly due to the COVID-19 pandemic-induced lockdowns and started recovering only in 2023. According to the Ministry of Finance's Quarterly Debt Bulletin for Quarter 1, 2024 published on June 1, the public and publicly guaranteed (PPG) debt has risen to USD 8.2 billion

India remains world's fastest growing major economy globally: World Bank

The global economic report of the World Bank noted that in the South Asian region, India is set to sustain its robust growth momentum although it will moderate in coming years

India to remain fastest-growing among largest economies, says World Bank

For FY26 and FY27, the World Bank projected India's economy to grow at 6.7 per cent and 6.8 per cent respectively

World Bank approves $1 bn loan for China-backed hydropower project in Pak

The World Bank has approved an additional loan of USD 1 billion for cash-strapped Pakistan to support the China-backed Dasu hydropower project in the restive Khyber Pakhtunkhwa province. According to a report in the Express Tribune newspaper, this constitutes the third major financing by the global lender for the project, which earlier secured USD 588.4 million for preparatory works and an additional USD 700 million for constructing the transmission line to transmit electricity from the project. The Dasu hydropower project, situated approximately 300 km north of Islamabad in the unruly Khyber Pakhtunkhwa province, is being developed by China Gezhouba with funding from the global lender and has endured at least two deadly terrorist attacks targeting Chinese nationals involved in its construction. The World Bank in a press release on Monday said it has approved USD 1 billion additional financing for the DASU Hydropower Stage I (DHP I) Project. "This financing will support the expansi

World Bank working paper advocates increased devolution for Panchayats

Empowering ward members (WMs) within village councils, who currently lack financial resources and act merely as rubber stamps, is another recommendation

IMF issues warning of significant downside risks for Pakistan's economy

This uncertainty, it warns, could have profound effects on policymaking, particularly given the high cost of living and other political complexities

Pak to seek rollover of $12 bn debt to meet target before IMF team arrives

Pakistan has decided to seek a rollover of around USD 12 billion debt from key allies like China in the 2024-25 fiscal year to meet a whopping USD 23 billion worth of gap in its external financing as the federal government aims to achieve budget targets before the expected arrival of an IMF team to the cash-strapped country. According to the Finance Ministry insiders, USD 5 billion from Saudi Arabia, USD 3 billion from the UAE and USD 4 billion from China will be rolled over, adding that the estimate of further new financing from China would also be included in the next financial year's budget, The Express Tribune newspaper reported. Pakistan will receive more than USD 1 billion from the International Monetary Fund (IMF) under the fresh loan programme, whereas new financing from the World Bank and Asian Development Bank has also been included in the estimated budget. According to the Finance Ministry sources, new loan programme agreements will be made with financial institutions. Th

Afghanistan receives $84 mn in aid from World Bank amid humanitarian crisis

The Ministry of Economy welcomed the World Bank's assistance and stated that it may support economic expansion and project modifications that result in job creation for the nation's workforce

Centre begins early preparations for new World Bank Business index

Interministerial meetings underway with DPIIT to get a head start on B-Ready, due for 2026

Cash-strapped Pak makes formal request to IMF for another bailout

Pakistan has made a formal request to IMF for seeking the next bailout package in the range of USD 6 to USD 8 billion with the possibility of augmentation through climate financing, a media report said on Saturday. Cash-strapped Pakistan also requested to dispatch the International Monetary Fund (IMF) review mission next month to firm up details of the next bailout package for three years under the Extended Fund Facility (EFF). However, the exact size and timeframe of the new package will only be determined after evolving consensus on the major contours of the next programme in May 2024, Geo News reported from Washington. A high-level Pakistani delegation led by Finance Minister Muhammad Aurangzeb is currently visiting Washington to attend the annual spring meetings of the IMF/World Bank. Although Pakistani authorities are pitching a rosy picture of the economy, the IMF in its latest Regional Economic Outlook (REO) released by Middle East and Central Asia (ME and CA) said the ...

Role played by India during G-20 presidency appreciated at IMF meeting

During the annual Spring meetings of the IMF and the World Bank there was a widespread appreciation of the role played by India during its G-20 presidency in building consensus on a range of key global issues, a top Indian official has said. India hosted the G20 Summit in New Delhi from September 9-10. The summit adopted a 37-page consensus declaration overcoming major differences on the Russia-Ukraine war and took several steps to ensure the stability of the global economy. There is a widespread appreciation of Indian presidency of the G-20 in building consensus on several issues, relevant for global deployment, conducted of various meetings during the presidency as well as the leaders' summit, Ajay Seth, Economic Affairs Secretary told PTI on Friday on the sidelines of the annual sprint meetings of the International Monetary Fund and the World Bank. Due to the ongoing Lok Sabha election, Union Finance Minister Nirmala Sitharaman is not attending the annual IMF and World Bank ...

Climate change, war, poverty biggest challenges: World Bank's Ajay Banga

There was no shortage of stressors to the global economy when Ajay Banga took charge at the World Bank almost a year ago: inflation eating at nations drowning in debt, a once-in-a-generation pandemic, climate disasters and Russia's invasion of Ukraine. Factor in the Israel-Hamas war and rising tensions between powerful nations, and today's agenda is even fuller as the World Bank and the International Monetary Fund hold their spring meetings in Washington this week. The world's intertwined challenges of poverty which clearly we have seen great setbacks over the past few years combined with fragility and conflict and violence, combined with climate change, is coming into a perfect storm, Banga said in an interview with The Associated Press. "We need to put all of our efforts into this. Banga highlighted new initiatives being announced at the meetings, including plans to provide 300 million people in Africa with electricity by 2030 and 1.5 billion people worldwide with health care .

President Biden's push for World Bank funds to compete with China stalls

The World Bank's two major lending arms committed a combined $72.8 billion last year, with total cumulative lending since 1945 at nearly $1.4 trillion

Janet Yellen likely to reiterate warnings over China's manufacturing power

With its dominant voice in all of those forums, the US is expected to try to align other countries across Europe, Asia and Latin America to voice concerns over China's output and exports

IMF Chief Kristalina Georgieva wins second term ahead of Spring meetings

Georgieva, 70, led IMF's efforts to aid indebted countries through pandemic and has warned about the global economic impact of trade fragmentation caused by worsening US-China relations

IMF under pressure to cut billions of dollars in fees for large borrowers

The IMF released a statement last week saying that "a number" of its board members were open to reviewing policies around surcharges, the fees that it charges nations that borrow more

World Bank allocates $16 mn to support women-led businesses in Afghanistan

The World Bank added that the bank is striving to increase access to financial resources in Afghanistan for small and medium-sized enterprises

World Bank set to issue up to $1 billion in debut hybrid note this year

The G20 group of major economies has urged multilateral lenders to explore hybrid financing structures in a push to try

World Bank lifts India's economic growth forecast for FY25 to 6.6%

Cautions that South Asia Risks "Squandering" Its Demographic Dividend

World Bank to share more data to attract investors to developing countries

Economic growth has slowed in developing countries, with growth falling to barely 4% from 6% in two decades, Banga said