Sri Lanka's economic outlook has improved significantly...With fitch ratings upgrading the country's credit rating from "Restricted default" to 'ccc+'.



This marks a turning point for the Island nation, signaling a reduction in default risks and renewed confidence in its economic recovery.

Sri Lanka's Economic Recovery Gains Momentum

With the decision by the Hong Kong-based Fitch Ratings to upgrade Sri Lanka's credit rating, the island nation has officially ended its debt default, the Finance Ministry said here on Saturday.&nbsp;

Fitch upgraded Sri Lanka's long-term credit default rating to CCC+ from CCC- on Friday as it said that "the risk of another default on local currency debt has been reduced by the completion of the international sovereign bond restructuring and an improved outlook for macroeconomic indicators."

Mahinda Siriwardana, a top bureaucrat in the Finance Ministry, said in a statement: "December 20 marked a major milestone in our economic recovery process as Sri Lanka officially exited sovereign default."

Sri Lanka plunged into an economic crisis when the island nation declared sovereign default in mid-April of 2022, its first since gaining independence from Britain in 1948. Almost civil-war-like conditions and months of public protests led to the fleeing of the then president Gotabaya Rajapaksa.

Ranil Wickremesinghe, who then took over as the president, began the negotiations with the International Monetary Fund (IMF) soon after. His government then clinched the bailout a year later in March 2023.

Siriwardana said the crisis was man-made and could have been averted if the early warnings had been heeded with an early engagement with the IMF.

"While macroeconomic outcomes have indeed been satisfactory and the debt restructuring process is completed culminating in this rating upgrade, people still feel the pain from the crisis and the difficult remedial measures."

<a href="https://www.wionews.com/india-news/president-disanayaka-assures-sri-lankas-land-wont-be-used-against-indias-security-interests-784493">Also read:&nbsp;President Dissanayake assures Sri Lanka's land won’t be used against India’s security interests</a>

He was perhaps referring to the time of unprecedented forex crisis that had triggered shortages of essentials and long queues were witnessed for fuel and cooking gas while the island faced power cuts for over 10 hours in 2022.

Siriwardana stresses that no room exists for a repeat of policy errors, the collapse happens rapidly but the recovery is painful.

"This is indeed a historic moment and a time to celebrate but it is a moment that should never be repeated."

Siriwardana was one of the two top officials besides the Central Bank Governor Nandalal Weerasinghe, who saw through the recovery process from its start in 2022.&nbsp;

There have been three presidents and three finance ministers since the country was plunged into crisis.

Earlier on Wednesday, President Anura Kumara Dissanayake announced that Sri Lanka has achieved flexibility with the IMF on its rigid state revenue tax regime, something that was part of his election promise.

Speaking about the agreements reached with the International Monetary Fund (IMF) during its third review of the USD 2.9 billion Extended Fund Facility (EFF), Dissanayake, who is also the Minister of Finance, told the parliament that his government has been able to raise the tax threshold.

Watch |&nbsp;Sri Lanka's President Chose India Over China

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"We have been able to raise the tax threshold of pay as you earn (PAYE tax) so that those who have bigger incomes pay more while those who earn pay less," Dissanayake said, adding there would be other VAT exemptions and withholding tax on interest incomes for the retired.

Dissanayake's government has recently concluded its third review of the IMF bailout and is awaiting the fourth tranche of the nearly USD 3 billion facility.

Sri Lanka had on November 26 announced that it has ratified the agreement for debt restructuring for USD 14.2 billion, compulsory to maintain debt sustainability by the IMF through an exchange of new bonds for the existing bonds.

A week prior to it, the National People's Power (NPP) government got the IMF approval for a staff-level agreement to secure the fourth tranche of the nearly USD 3 billion bailout package, something that President Dissanayake backed despite his pre-presidential election rhetoric to renegotiate with the global lender to water down tough conditions.

The NPP was highly critical of the cost recovery based on utility tariffs and high taxes, which came conditional to the bailout.

The debt restructuring agreement was reached in the last week of then-President Ranil Wickremesinghe's regime in September, days before the presidential polls.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience.

With the decision by the Hong Kong-based Fitch Ratings to upgrade Sri Lanka's credit rating, the island nation has officially ended its debt default, the Finance Ministry said here on Saturday.

With the decision by the Hong Kong-based Fitch Ratings to upgrade Sri Lanka's credit rating, the island nation has officially ended its debt default, the Finance Ministry said here on Saturday. Fitch upgraded Sri Lanka's long-term credit default rating to CCC+ from CCC- on Friday as it said that "the risk of another default on local currency debt has been reduced by the completion of the international sovereign bond restructuring and an improved outlook for macroeconomic indicators." Mahinda Siriwardana, a top bureaucrat in the Finance Ministry, said in a statement: "December 20 marked a major milestone in our economic recovery process as Sri Lanka officially exited sovereign default." Sri Lanka plunged into an economic crisis when the island nation declared sovereign default in mid-April of 2022, its first since gaining independence from Britain in 1948. Almost civil-war-like conditions and months of public protests led to the fleeing of the then president Gotabaya Rajapaksa. Ranil Wickremesinghe, who then took over as the president, began the negotiations with the International Monetary Fund (IMF) soon after. His government then clinched the bailout a year later in March 2023. Siriwardana said the crisis was man-made and could have been averted if the early warnings had been heeded with an early engagement with the IMF. "While macroeconomic outcomes have indeed been satisfactory and the debt restructuring process is completed culminating in this rating upgrade, people still feel the pain from the crisis and the difficult remedial measures." Also read: President Dissanayake assures Sri Lanka's land won’t be used against India’s security interests He was perhaps referring to the time of unprecedented forex crisis that had triggered shortages of essentials and long queues were witnessed for fuel and cooking gas while the island faced power cuts for over 10 hours in 2022. Siriwardana stresses that no room exists for a repeat of policy errors, the collapse happens rapidly but the recovery is painful. "This is indeed a historic moment and a time to celebrate but it is a moment that should never be repeated." Siriwardana was one of the two top officials besides the Central Bank Governor Nandalal Weerasinghe, who saw through the recovery process from its start in 2022. There have been three presidents and three finance ministers since the country was plunged into crisis. Earlier on Wednesday, President Anura Kumara Dissanayake announced that Sri Lanka has achieved flexibility with the IMF on its rigid state revenue tax regime, something that was part of his election promise. Speaking about the agreements reached with the International Monetary Fund (IMF) during its third review of the USD 2.9 billion Extended Fund Facility (EFF), Dissanayake, who is also the Minister of Finance, told the parliament that his government has been able to raise the tax threshold. Watch | Sri Lanka's President Chose India Over China × "We have been able to raise the tax threshold of pay as you earn (PAYE tax) so that those who have bigger incomes pay more while those who earn pay less," Dissanayake said, adding there would be other VAT exemptions and withholding tax on interest incomes for the retired. Dissanayake's government has recently concluded its third review of the IMF bailout and is awaiting the fourth tranche of the nearly USD 3 billion facility. Sri Lanka had on November 26 announced that it has ratified the agreement for debt restructuring for USD 14.2 billion, compulsory to maintain debt sustainability by the IMF through an exchange of new bonds for the existing bonds. A week prior to it, the National People's Power (NPP) government got the IMF approval for a staff-level agreement to secure the fourth tranche of the nearly USD 3 billion bailout package, something that President Dissanayake backed despite his pre-presidential election rhetoric to renegotiate with the global lender to water down tough conditions. The NPP was highly critical of the cost recovery based on utility tariffs and high taxes, which came conditional to the bailout. The debt restructuring agreement was reached in the last week of then-President Ranil Wickremesinghe's regime in September, days before the presidential polls. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Sri Lanka claims it has ended debt default, says crisis was 'man-made'

Vijay Mallya, in a social media post, questioned how he could be considered an economic offender after more than double the amount was recovered that had been determined by the courts as debt owed. He cited a statement by Finance Minister Nirmala Sitharaman in parliament regarding the recovery of over 14,130 crore rupees from assets attached to him.

Mallya Questions Over Claim of 14,000 Crore Rupees Debt Recovery

Brazil’s currency turmoil is putting significant pressure on the nation’s largest companies. The Brazilian real has dropped 21 percent recently, making it more expensive for companies to service their debt.

Brazil’s Business Sector Struggles As Real Slumps & Rates Rise

Brazil’s currency turmoil is putting significant pressure on the nation’s largest companies. The Brazilian real has dropped 21 percent recently, making it more expensive for companies to service their debt.



Ecuador announced Tuesday that it had converted part of its $1.5 billion of external debt into protection for the Amazon rainforest. Watch this report for more details!

Ecuador Secures $1.5 Bn Debt Swap To Fund Amazon Conservation

The developing world is bracing for a tumultuous 2025. Emerging market nations have to deal with the added stress of paying interest on the $29 trillion in debt that was accumulated over the past decade.

Massive Interest Burden Haunts $29 Trillion Emerging Debt Pile

The developing world is bracing for a tumultuous 2025. Emerging market nations have to deal with the added stress of paying interest on the $29 trillion in debt that was accumulated over the past decade.



Sri Lanka's private creditors back 12.6 billion dollar debt restructuring plan. The restructuring of Sri Lanka's foreign debts is a crucial step in the country's effort to get out of its protracted default.

Sri Lanka Bondholders Back $12.6 Billion Debt Restructuring

Volkswagen and Toyota tops the list of companies with the highest net debt. Takeovers propel global borrowing to record levels. Watch to know more!

Volkswagen Tops Corporate Debt Rankings, Takeovers Propel Corporate Borrowing | World News | WION

Kamala Harris has clearly overspent in the entire US Presidential election campaign this time and landed herself in a big soup after ending up in a whopping $20 million debt. Watch this report for more details!

US: Kamala Harris' $1 Billion Campaign Ends in $20 Million Debt

As the world grapples with a multitude of crises, the World Bank has issued a stark warning regarding the state of global poverty. In a recent report, the institution highlighted how ongoing wars, escalating debt levels, the climate crisis, and the lingering effects of the Covid-19 pandemic have collectively undermined efforts to alleviate poverty worldwide according to detailed report by The Guardian. <o:p></o:p>

The report underscores that these compounding challenges have resulted in a staggering increase in poverty rates. According to the World Bank’s findings, nearly 700 million people are now living on less than $2.15 per day, a figure that has surged by 10 per cent since 2019. This alarming trend not only threatens the livelihoods of millions but also jeopardises the progress made in previous decades to combat poverty.<o:p></o:p>

Impact of conflict and debt on poverty<o:p></o:p>

The report elaborates on how conflicts in various regions have worsened poverty levels. Countries involved&nbsp;in wars experience significant disruptions to their economies and social structures. The World Bank noted that conflict-related displacement has reached unprecedented levels, with over 100 million people forced to flee their homes due to violence.<o:p></o:p>

Moreover, rising debt burdens have left many nations struggling to fund essential services. The institution revealed that around 60 per cent of low-income countries are currently at risk of or already experiencing debt distress. This financial strain limits governments' ability to invest in critical areas such as healthcare and education, further entrenching poverty.<o:p></o:p>

Climate change: A growing threat<o:p></o:p>

In addition to conflict and debt, climate change poses an existential threat to global poverty reduction efforts. The World Bank's report highlights that extreme weather events have become increasingly frequent and severe, disproportionately affecting vulnerable populations. Floods, droughts, and heatwaves not only destroy livelihoods but also disrupt food security.<o:p></o:p>

The report warns that without immediate action to address climate change, an estimated 130 million people could be pushed into extreme poverty by 2030. This grim projection serves as a clarion call for governments and organisations worldwide to prioritise sustainable development practices and invest in climate resilience.<o:p></o:p>

<o:p>&nbsp;</o:p>The role of Covid-19<o:p></o:p>

The Covid-19 pandemic has further complicated these challenges. The World Bank stated that while many countries are recovering from the immediate health crisis, the economic repercussions continue to reverberate through societies. Job losses and reduced incomes have left countless families struggling to make ends meet.<o:p></o:p>

In light of these multifaceted crises, the World Bank is urging governments to adopt comprehensive strategies aimed at combating poverty. This includes increasing investments in social protection systems, enhancing access to education and healthcare, and promoting economic diversification.<o:p></o:p>

The World Bank's report paints a difficult picture of the current state of global poverty amid wars, debt crises, climate change, and the ongoing effects of Covid-19. As millions face unprecedented challenges, it is imperative for policymakers to act decisively to reverse these trends and safeguard the future of vulnerable populations worldwide. The time for action is now; failure to respond could result in irreversible damage to global anti-poverty efforts for generations to come.<o:p></o:p>

As the world grapples with a multitude of crises, the World Bank has issued a stark warning regarding the state of global poverty. In a recent report, the institution highlighted how ongoing wars, escalating debt levels, the climate crisis, and the lingering effects of the Covid-19 pandemic have collectively undermined efforts to alleviate poverty worldwide according to detailed report by The Guardian.

As the world grapples with a multitude of crises, the World Bank has issued a stark warning regarding the state of global poverty. In a recent report, the institution highlighted how ongoing wars, escalating debt levels, the climate crisis, and the lingering effects of the Covid-19 pandemic have collectively undermined efforts to alleviate poverty worldwide according to detailed report by The Guardian. The report underscores that these compounding challenges have resulted in a staggering increase in poverty rates. According to the World Bank’s findings, nearly 700 million people are now living on less than $2.15 per day, a figure that has surged by 10 per cent since 2019. This alarming trend not only threatens the livelihoods of millions but also jeopardises the progress made in previous decades to combat poverty. Impact of conflict and debt on poverty The report elaborates on how conflicts in various regions have worsened poverty levels. Countries involved in wars experience significant disruptions to their economies and social structures. The World Bank noted that conflict-related displacement has reached unprecedented levels, with over 100 million people forced to flee their homes due to violence. Moreover, rising debt burdens have left many nations struggling to fund essential services. The institution revealed that around 60 per cent of low-income countries are currently at risk of or already experiencing debt distress. This financial strain limits governments' ability to invest in critical areas such as healthcare and education, further entrenching poverty. Climate change: A growing threat In addition to conflict and debt, climate change poses an existential threat to global poverty reduction efforts. The World Bank's report highlights that extreme weather events have become increasingly frequent and severe, disproportionately affecting vulnerable populations. Floods, droughts, and heatwaves not only destroy livelihoods but also disrupt food security. The report warns that without immediate action to address climate change, an estimated 130 million people could be pushed into extreme poverty by 2030. This grim projection serves as a clarion call for governments and organisations worldwide to prioritise sustainable development practices and invest in climate resilience. The role of Covid-19 The Covid-19 pandemic has further complicated these challenges. The World Bank stated that while many countries are recovering from the immediate health crisis, the economic repercussions continue to reverberate through societies. Job losses and reduced incomes have left countless families struggling to make ends meet. In light of these multifaceted crises, the World Bank is urging governments to adopt comprehensive strategies aimed at combating poverty. This includes increasing investments in social protection systems, enhancing access to education and healthcare, and promoting economic diversification. The World Bank's report paints a difficult picture of the current state of global poverty amid wars, debt crises, climate change, and the ongoing effects of Covid-19. As millions face unprecedented challenges, it is imperative for policymakers to act decisively to reverse these trends and safeguard the future of vulnerable populations worldwide. The time for action is now; failure to respond could result in irreversible damage to global anti-poverty efforts for generations to come.

Wars, debt, and climate crisis stall global anti-poverty efforts, warns World Bank

The international monetary fund has raised alarms on the growing debt crisis gripping global economies. Global public debt is projected to exceed 100 trillion dollars by the end of 2024, amounting to approximately 93 percent of global gross domestic product.

IMF: Global Public Debt To Exceed $100 Trillion By 2024

Chief economists have expressed cautious optimism over the global economy, particularly highlighting India's robust performance that put South Asia at the top position globally, according to the latest survey by the World Economic Forum.

A survey released last week by the World Economic Forum makes a series of noteworthy predictions and reveals easing inflation and strong global commerce as key drivers of the optimism for recovery; however, it also points out accelerating debt levels that challenge advanced and developing economies alike.

Brief history of World Economic Forum<o:p></o:p>

The World Economic Forum (WEF) is an international non-governmental organization, think tank and lobbying organisation based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer Klaus Schwab.

The foundation, which is mostly funded by its 1,000 member companies, typically global enterprises with more than five billion US dollars in turnover, as well as public subsidies, states that its own mission is "improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas".

The Forum claims that a globalized world is best managed by a self-selected coalition of multinational corporations, governments, and civil society organizations (CSOs), which it expresses through initiatives like the "Great Reset" and the "Global Redesign". It states that it views periods of global instability such as the financial crisis of 2007–2008 and the COVID-19 pandemic, as windows of opportunity to intensify its programmatic efforts.

WEF Outlook<o:p></o:p>

According to a report detailed by the Press Trust of India, The WEF Chief Economists Outlook has revealed that the spectrum of debt and fiscal stress is only rising, which is making economists worried about the cost of servicing debt that will yield the starkest constraint on key investment areas such as infrastructure, education, and healthcare. In particular, 39 per cent of economists polled from developing nations expected a rise in defaults in the next year.

Regionally, almost 90 per cent of economists expect moderate to strong growth in the US over the next two years through 2025 while still confident that it will have a "soft landing" post-tight monetary policy. Europe is expected to be experiencing weak growth and China faces similar problems with nearly 40 per cent expecting weak or very weak growth over the next two years.

South Asia is very different. Over 70 per cent of economists are positive regarding the prospects for strong growth in 2024 and 2025, mainly due to India's performance. The International Monetary Fund recently adjusted India's GDP growth forecast from 6.8 per cent to 7 per cent, showing again the vibrancy of the region.

Further, according to Saadia Zahidi, WEF's managing director, the global economy enters 2024 with new signs of stabilization but fiscal challenges remain. The role of coordinated policy efforts in facilitating resilient recovery is perceived here to be quite important. The survey suggests limited fiscal space for facing future crises; developing economies are vulnerable to dealing with long-term challenges such as climate change and demographic shifts.

<o:p>&nbsp;</o:p>

Chief economists have expressed cautious optimism over the global economy, particularly highlighting India's robust performance that put South Asia at the top position globally, according to the latest survey by the World Economic Forum.

Chief economists have expressed cautious optimism over the global economy, particularly highlighting India's robust performance that put South Asia at the top position globally, according to the latest survey by the World Economic Forum. A survey released last week by the World Economic Forum makes a series of noteworthy predictions and reveals easing inflation and strong global commerce as key drivers of the optimism for recovery; however, it also points out accelerating debt levels that challenge advanced and developing economies alike. Brief history of World Economic Forum The World Economic Forum (WEF) is an international non-governmental organization, think tank and lobbying organisation based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer Klaus Schwab. The foundation, which is mostly funded by its 1,000 member companies, typically global enterprises with more than five billion US dollars in turnover, as well as public subsidies, states that its own mission is "improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas". The Forum claims that a globalized world is best managed by a self-selected coalition of multinational corporations, governments, and civil society organizations (CSOs), which it expresses through initiatives like the "Great Reset" and the "Global Redesign". It states that it views periods of global instability such as the financial crisis of 2007–2008 and the COVID-19 pandemic, as windows of opportunity to intensify its programmatic efforts. WEF Outlook According to a report detailed by the Press Trust of India, The WEF Chief Economists Outlook has revealed that the spectrum of debt and fiscal stress is only rising, which is making economists worried about the cost of servicing debt that will yield the starkest constraint on key investment areas such as infrastructure, education, and healthcare. In particular, 39 per cent of economists polled from developing nations expected a rise in defaults in the next year. Regionally, almost 90 per cent of economists expect moderate to strong growth in the US over the next two years through 2025 while still confident that it will have a "soft landing" post-tight monetary policy. Europe is expected to be experiencing weak growth and China faces similar problems with nearly 40 per cent expecting weak or very weak growth over the next two years. South Asia is very different. Over 70 per cent of economists are positive regarding the prospects for strong growth in 2024 and 2025, mainly due to India's performance. The International Monetary Fund recently adjusted India's GDP growth forecast from 6.8 per cent to 7 per cent, showing again the vibrancy of the region. Further, according to Saadia Zahidi, WEF's managing director, the global economy enters 2024 with new signs of stabilization but fiscal challenges remain. The role of coordinated policy efforts in facilitating resilient recovery is perceived here to be quite important. The survey suggests limited fiscal space for facing future crises; developing economies are vulnerable to dealing with long-term challenges such as climate change and demographic shifts.

Leading economists bullish on India, still cautious optimism prevails for global recovery: WEF survey

A survey finds that the average household debt in Thailand will hit the highest level in at least 16 years. Family incomes have taken a hit as a result of the unequal economic recovery following the pandemic. Watch to know more.

Average household debt seen rising 8.4% to $18,000 this year

Economically-crippled Pakistan has now touched the mark of $254 billion (PKR&nbsp;71 trillion) in debt as of June 2024, Pakistan-based ARY News reported, on Friday (Aug 30).&nbsp;

The Pakistan federal government released details of the domestic and foreign debt of the country, and the data was presented to the National Assembly.&nbsp;

The country's total debt comprises 66 per cent domestic debt and 34 per cent foreign debt, according to the document presented in the National Assembly.&nbsp;

The total debt sums to Rs 47 trillion in domestic loans and over Rs 24 trillion in foreign loans.&nbsp;

<a href="https://www.wionews.com/south-asia/pakistan-gets-24th-imf-loan-since-1947-this-time-its-7-billion-740483">Also read:&nbsp;Pakistan gets 24th IMF loan since 1947; this time it’s $7 billion</a>

Moreover, the Pakistan Ministry of Finance also presented a debt repayment schedule for the next several years.&nbsp;

As per the schedule, Pakistan will pay Rs 18,700 billion in 2024, Rs 8,700 billion in 2025, Rs 7,600 billion in 2026, and Rs 4,300 billion in 2027.&nbsp;

Watch |&nbsp;Pakistan battles security crisis in Balochistan

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Further, in future, the debt-ridden country will have to pay Rs 6,000 billion in 2028, &nbsp;Rs 8,400 billion in 2029, Rs 2,400 billion in 2030, and Rs 2,600 billion in 2031.&nbsp;

Pakistan also has to pay a significant portion of the debt and is scheduled for repayment in 2031.&nbsp;

The country has been dealing with significant economic challenges, due to which, it was seeking bailout programs from International Monetary Fund (IMF).&nbsp;

In July, Prime Minister&nbsp;Shehbaz Sharif-led Pakistan government revealed a three-year economic plan, aiming to increase the share of provinces in the federal budget. The plan also highlighted the country's debt burden with total debts expected to reach PKR 79,731 billion by the end of the current fiscal year.

Earlier, the federal government shared a three-year economic plan, which aims to increase the share of provinces in the budget from 39.4 per cent to 48.7 per cent by 2027.&nbsp;

The provinces will receive Rs 10,350 billion by 2026-27 under the National Finance Commission (NFC) Award, the report stated.&nbsp;

(With inputs from agencies)

Economically-crippled Pakistan has now touched the mark of $254 billion (PKR 71 trillion) in debt as of June 2024, Pakistan-based ARY News reported, on Friday (Aug 30).

Economically-crippled Pakistan has now touched the mark of $254 billion (PKR 71 trillion) in debt as of June 2024, Pakistan-based ARY News reported, on Friday (Aug 30). The Pakistan federal government released details of the domestic and foreign debt of the country, and the data was presented to the National Assembly. The country's total debt comprises 66 per cent domestic debt and 34 per cent foreign debt, according to the document presented in the National Assembly. The total debt sums to Rs 47 trillion in domestic loans and over Rs 24 trillion in foreign loans. Also read: Pakistan gets 24th IMF loan since 1947; this time it’s $7 billion Moreover, the Pakistan Ministry of Finance also presented a debt repayment schedule for the next several years. As per the schedule, Pakistan will pay Rs 18,700 billion in 2024, Rs 8,700 billion in 2025, Rs 7,600 billion in 2026, and Rs 4,300 billion in 2027. Watch | Pakistan battles security crisis in Balochistan × Further, in future, the debt-ridden country will have to pay Rs 6,000 billion in 2028, Rs 8,400 billion in 2029, Rs 2,400 billion in 2030, and Rs 2,600 billion in 2031. Pakistan also has to pay a significant portion of the debt and is scheduled for repayment in 2031. The country has been dealing with significant economic challenges, due to which, it was seeking bailout programs from International Monetary Fund (IMF). In July, Prime Minister Shehbaz Sharif-led Pakistan government revealed a three-year economic plan, aiming to increase the share of provinces in the federal budget. The plan also highlighted the country's debt burden with total debts expected to reach PKR 79,731 billion by the end of the current fiscal year. Earlier, the federal government shared a three-year economic plan, which aims to increase the share of provinces in the budget from 39.4 per cent to 48.7 per cent by 2027. The provinces will receive Rs 10,350 billion by 2026-27 under the National Finance Commission (NFC) Award, the report stated. (With inputs from agencies)

Pakistan debt crosses $254 billion as of June 2024

A couple from northern India's Uttar Pradesh, identified as Saurabh Babbar (35) and his wife Mona, allegedly died by suicide in Uttarakhand's Haridwar, due to mounting financial debts.&nbsp;

The incident came to light after the couple sent a WhatsApp message to their family on August 10,&nbsp;describing their intent and decision for self-harm, according to local police.

The husband's body was found on the banks of the Ganga River near Jamalpur Khurd village in the Ranipur Kotwali area on Monday (August 12) morning. The efforts to locate his wife were ongoing at the time of filing this report.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/indian-woman-dies-by-suicide-over-body-shaming-bullying-and-harassment-at-workplace-741815">Indian woman dies by suicide over body-shaming, bullying and harassment at workplace</a>

Saurabh Babbar, a resident of Kishanpura Kotwali Nagar in Saharanpur district, was a bullion trader and the owner of 'Sai Jewelers' in Saharanpur. He also worked as a kitty collector but had reportedly accumulated significant debt which he struggled to repay, according to reports.&nbsp;

The financial burden allegedly led the couple to travel to Haridwar with the intent of ending their lives near Har Ki Pauri, a prominent ghat on the Ganga River.

Local residents discovered Saurabh Babbar's body at around 9:30 am (local time), stuck in a swamp along the riverbank. They informed the police who arrived at the scene and recovered the body. Identification was made through documents found in his wallet which also contained a mobile phone.

Also watch |&nbsp;India: Woman dies by suicide after husband loses $180,000 in betting in Karnataka

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After receiving the suicide note, the couple's family immediately contacted Haridwar police, following which a search operation was launched. The police have since been investigating the circumstances surrounding the deaths.

Ranipur Kotwali in-charge Vijay Singh said that Babbar's body has been sent to the mortuary for a post-mortem examination. The investigation into the incident continues.

(With inputs from agencies)

Get help &amp; support for suicide

If you or someone you know wants help for mental well-being, don't hesitate to talk to a professional. You can contact local authorities and also encourage the person to contact a&nbsp;suicide prevention hotline.&nbsp;WION does not make any recommendations.

A couple from northern India's Uttar Pradesh, identified as Saurabh Babbar (35) and his wife Mona, allegedly died by suicide in Uttarakhand's Haridwar, due to mounting financial debts.

A couple from northern India's Uttar Pradesh, identified as Saurabh Babbar (35) and his wife Mona, allegedly died by suicide in Uttarakhand's Haridwar, due to mounting financial debts. The incident came to light after the couple sent a WhatsApp message to their family on August 10, describing their intent and decision for self-harm, according to local police. The husband's body was found on the banks of the Ganga River near Jamalpur Khurd village in the Ranipur Kotwali area on Monday (August 12) morning. The efforts to locate his wife were ongoing at the time of filing this report. Also read | Indian woman dies by suicide over body-shaming, bullying and harassment at workplace Saurabh Babbar, a resident of Kishanpura Kotwali Nagar in Saharanpur district, was a bullion trader and the owner of 'Sai Jewelers' in Saharanpur. He also worked as a kitty collector but had reportedly accumulated significant debt which he struggled to repay, according to reports. The financial burden allegedly led the couple to travel to Haridwar with the intent of ending their lives near Har Ki Pauri, a prominent ghat on the Ganga River. Local residents discovered Saurabh Babbar's body at around 9:30 am (local time), stuck in a swamp along the riverbank. They informed the police who arrived at the scene and recovered the body. Identification was made through documents found in his wallet which also contained a mobile phone. Also watch | India: Woman dies by suicide after husband loses $180,000 in betting in Karnataka × After receiving the suicide note, the couple's family immediately contacted Haridwar police, following which a search operation was launched. The police have since been investigating the circumstances surrounding the deaths. Ranipur Kotwali in-charge Vijay Singh said that Babbar's body has been sent to the mortuary for a post-mortem examination. The investigation into the incident continues. (With inputs from agencies) Get help & support for suicide If you or someone you know wants help for mental well-being, don't hesitate to talk to a professional. You can contact local authorities and also encourage the person to contact a suicide prevention hotline. WION does not make any recommendations.

Uttar Pradesh debt-ridden couple commits suicide in Haridwar

Let’s shift our focus to the European Union where now a major economic issue is gripping the member states. Fiscal reforms.. European economy commissioner Paolo Gentiloni has called for France and other debt burdened nations to tighten their belts amidst critical talks in Brussels.

EU commission calls for fiscal reforms amid economic strain

Student debt in the US is old news, but did you know that some 1.8 million people in Britain have student debts running into millions of pounds?

According to data accessed by BBC, nearly 1.8 million people still have more than 50,000 pounds or more per person in student debts.&nbsp;

Besides this, individual debts of at least 50 people go beyond 200,000 pounds.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/i-know-how-to-do-this-job-joe-bidens-new-election-campaign-ad-paints-donald-trump-as-a-liar-737046">'I know how to do this job': Joe Biden's new election campaign ad paints Donald Trump as a 'liar'</a>

More than 61,000 people have to pay over 100,000 pounds per person, according to Student Loans Company (SLC), from which BBC accessed the data.

Average tuition fees in the UK are around 9,250 pounds per year.

The loan terms can last up to 30 years, after which they are often written off.

According to data published by Britain's Department of Education, student loan balance reached 236.2 billion pounds as of 2023-24, including new lending and interest.&nbsp;

This is a massive rise from a decade ago, when loan balances were 54.4 billion pounds in 2013-14. The figure for 2022-23 was at 205.6 billion, nearly 15 per cent less than the subsequent financial year.

It noted that new lending and interest added to existing balances outweigh repayments and write-offs.

Also read |&nbsp;<a href="https://www.wionews.com/world/kenya-protests-human-rights-body-puts-deaths-at-39-double-than-govt-data-737038">Kenya protests: Human rights body puts deaths at 39, double than govt data</a>

Nearly 75 per cent of these amounts are liable for repayment as due dates have passed.

The BBC report said loan balances are higher for those doing multiple or lengthy courses.

It quoted Tom Allingham of the website Save The Student as saying that the debts were "alarming."

As the UK goes into elections this week, none of the parties have taken up student debt as an issue, something the National Union of Students (NUS) termed 'ridiculous'.

BBC quoted Ben Waltmann of the Institute of Fiscal Studies as saying that those who took Plan 2 loans, introduced when fees were tripled, are unlikely to pay back fully.

<h2>Cost of studying in the UK: Tuition fees</h2>

Tuition fees in the UK were raised three-fold a decade ago.

Depending on the nature of institution and course, the undergraduate tuition fee in the UK can range from 10,000 pounds to 25,000 pounds. It is particularly difficult for international students when cost of living is added.

According to the British Council, international undergraduate tuition fees could be up to 38,000 pounds, while that for post-graduation could be up to 30,000 pounds.

Cost of stay, groceries and other bills will add up to 1,400 pounds per month. This includes hostels or private accommodation, gas, electricity, water, internet and TV, public transport and mobile phone among other things.

<h2>Rise in cost of living for UK students</h2>

In the post-pandemic world, UK students saw a 57 per cent rise in cost of living as of November 2022, according to NUS.

The student union also said that 25 per cent of students reported having less than 50 pounds left from their budget every month after paying bills in this period.

(With inputs from agencies)

Student debt in the US is old news, but did you know that some 1.8 million people in Britain have student debts running into millions of pounds? According to data accessed by BBC, nearly 1.

Student debt in the US is old news, but did you know that some 1.8 million people in Britain have student debts running into millions of pounds? According to data accessed by BBC, nearly 1.8 million people still have more than 50,000 pounds or more per person in student debts. Besides this, individual debts of at least 50 people go beyond 200,000 pounds. Also read | 'I know how to do this job': Joe Biden's new election campaign ad paints Donald Trump as a 'liar' More than 61,000 people have to pay over 100,000 pounds per person, according to Student Loans Company (SLC), from which BBC accessed the data. Average tuition fees in the UK are around 9,250 pounds per year. The loan terms can last up to 30 years, after which they are often written off. According to data published by Britain's Department of Education, student loan balance reached 236.2 billion pounds as of 2023-24, including new lending and interest. This is a massive rise from a decade ago, when loan balances were 54.4 billion pounds in 2013-14. The figure for 2022-23 was at 205.6 billion, nearly 15 per cent less than the subsequent financial year. It noted that new lending and interest added to existing balances outweigh repayments and write-offs. Also read | Kenya protests: Human rights body puts deaths at 39, double than govt data Nearly 75 per cent of these amounts are liable for repayment as due dates have passed. The BBC report said loan balances are higher for those doing multiple or lengthy courses. It quoted Tom Allingham of the website Save The Student as saying that the debts were "alarming." As the UK goes into elections this week, none of the parties have taken up student debt as an issue, something the National Union of Students (NUS) termed 'ridiculous'. BBC quoted Ben Waltmann of the Institute of Fiscal Studies as saying that those who took Plan 2 loans, introduced when fees were tripled, are unlikely to pay back fully. Cost of studying in the UK: Tuition fees Tuition fees in the UK were raised three-fold a decade ago. Depending on the nature of institution and course, the undergraduate tuition fee in the UK can range from 10,000 pounds to 25,000 pounds. It is particularly difficult for international students when cost of living is added. According to the British Council, international undergraduate tuition fees could be up to 38,000 pounds, while that for post-graduation could be up to 30,000 pounds. Cost of stay, groceries and other bills will add up to 1,400 pounds per month. This includes hostels or private accommodation, gas, electricity, water, internet and TV, public transport and mobile phone among other things. Rise in cost of living for UK students In the post-pandemic world, UK students saw a 57 per cent rise in cost of living as of November 2022, according to NUS. The student union also said that 25 per cent of students reported having less than 50 pounds left from their budget every month after paying bills in this period. (With inputs from agencies)

UK student debt: 1.8 million owe 50,000 pounds each as total balance crosses 236.2 billion pounds

A pregnant Thai woman faked her own kidnapping to pay off her debt using her husband's savings. The woman colluded with the loan sharks and staged her kidnapping last month, as per a report by South China Morning Post (SCMP).

It started with the woman, who is also a gambling addict, telling her husband one day she is going to get her documents photocopied.

Minutes later, the husband receives a text on his phone, reading: "If you want your wife and children to be safe, don’t call the police."

A startled husband, his relatives and friends searched for the five-month-pregnant woman everywhere but to no avail. The 'kidnappers' even sent him a video showing the lady abandoned in a remote forest, with a black bag over her head and her hands bound.

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The man informed the police about the incident.

After investigation, rescuers and police staff were able to locate the woman on the morning of May 31. She was found soaking wet in the rain in the forest, trembling because of the cold. She was first taken to a hospital and then interrogated by officials.

She claimed she was followed by two masked men in the market and later abducted. She said the kidnappers made her transfer $2,200 from her husband's savings account.

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But her lie couldn’t survive for long. Police found obvious loopholes in her statements and established that the transaction was linked to the loan sharks.

After three hours of grilling, the woman eventually admitted to staging the fake kidnapping to pay off her debt.

The husband, meanwhile, has urged the police to refrain from taking any action against the woman, considering that she is pregnant with his child. The police let her off the hook with a warning and advice that she must stay away from gambling.

(With inputs from agencies)

A pregnant Thai woman faked her own kidnapping to pay off her debt using her husband's savings. The woman colluded with the loan sharks and staged her kidnapping last month, as per a report by South China Morning Post (SCMP).

A pregnant Thai woman faked her own kidnapping to pay off her debt using her husband's savings. The woman colluded with the loan sharks and staged her kidnapping last month, as per a report by South China Morning Post (SCMP). It started with the woman, who is also a gambling addict, telling her husband one day she is going to get her documents photocopied. Minutes later, the husband receives a text on his phone, reading: "If you want your wife and children to be safe, don’t call the police." A startled husband, his relatives and friends searched for the five-month-pregnant woman everywhere but to no avail. The 'kidnappers' even sent him a video showing the lady abandoned in a remote forest, with a black bag over her head and her hands bound. Also read: This Spanish city will bar apartment rentals to tourists by 2028 The man informed the police about the incident. After investigation, rescuers and police staff were able to locate the woman on the morning of May 31. She was found soaking wet in the rain in the forest, trembling because of the cold. She was first taken to a hospital and then interrogated by officials. She claimed she was followed by two masked men in the market and later abducted. She said the kidnappers made her transfer $2,200 from her husband's savings account. Also read: Boss` time rule backfires: Fines himself Rs 1,000 for being late But her lie couldn’t survive for long. Police found obvious loopholes in her statements and established that the transaction was linked to the loan sharks. After three hours of grilling, the woman eventually admitted to staging the fake kidnapping to pay off her debt. The husband, meanwhile, has urged the police to refrain from taking any action against the woman, considering that she is pregnant with his child. The police let her off the hook with a warning and advice that she must stay away from gambling. (With inputs from agencies)

Pregnant wife fakes own kidnapping to use husband's savings to pay off debt

The G7 leaders are turning their attention to migration on day two of the Summit in Italy. The leaders plan to discuss ways to combat human trafficking and increase investment in countries from where migrants start out. Watch in for more details!

G7 Summit 2024: China & migration top agenda on second day; Pope Francis to address leaders

Leaders of advanced economies are gearing up for the annual G7 meeting in Italy. Indian Prime Minister Narendra Modi is amongst the attendees who has reached Italy to participate in the 50th G7 Summit. He will likely meet US President Joe Biden and Italy's Prime Minister Giorgia Meloni.

G7 Summit 2024 Italy: French President Macron & PM Modi hold bilateral talks

G7 Summit 2024 Italy: G7 agrees on loan to support Ukraine with Russian assets

G7 Summit 2024: Hunger & Debt crisis in focus: Charity Oxfam urges wealthy Nations to boost spending on ending hunger as G7 leaders meet in Italy saying that just 3% of the G7 military spending could help solve the global food and debt crisis. Watch in for more details!

G7 Summit 2024: G7 spending shift could end global hunger, solve debt crisis

G7 Summit 2024: 3% of G7's defence spending can end hunger

IMF chief Kristalina Georgieva announced that Pakistan has requested a follow-up deal after successfully completing its existing programme. Last month, Pakistan and the IMF reached a staff-level agreement on the second and final review of the $3 billion stand-by arrangement. This agreement is poised to release approximately $1.1 billion to Pakistan.

IMF to decide on release of $1.1 BN to Pakistan by late April

A new report by credit rating agency S&P Global highlights the growing fragility of companies around the world. The percentage of companies that have defaulted on their debt more than once has reached its second-highest level since 2008 when the world was hit by an economic slowdown.

S&P: 35% of global defaults by 'redefaulters'

In a bid to woo the young generation in the upcoming general elections, United States President Joe Biden made another attempt at student loan cancellation.&nbsp;

With the new plan, President Biden is hoping to deliver on a major campaign promise, which he has so far not been able to fulfil.&nbsp;

Biden, on his visit to Wisconsin on Monday (April 8), gave a detailed proposal as per which the debt loan of around 25 million Americans will be cancelled.

For months, the plan is being worked out after the first attempt of Biden at mass cancellation was rejected by the Supreme Court. The decision of the court was called by Biden a "mistake", as he gave orders to the Education Department to make a new plan by using a different legal authority.&nbsp;

In comparison to his original plan, Biden's latest proposal is more targeted and focused on those for whom student loan is a major hurdle.

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The plans, which were detailed by presumptive Democratic presidential nominee Biden in Madison, Wisconsin, included cancelling up to $20,000 of accrued and capitalised interest for borrowers, without taking into consideration their income.

According to the Biden administration, this will cancel the entire interest for 23 million borrowers.

<h2>Who will benefit from Biden's new proposal?&nbsp;</h2>

The new proposal of Biden will offer cancellation of loans to five categories of borrowers.&nbsp;

According to the proposal, the student loan of those borrowers whose debt has grown due to unpaid interest will be cancelled.

The government will cancel around $20,000 in interest for Americans who currently owe&nbsp;way more than what they had borrowed originally.&nbsp;

However, this cap will not be applicable to individuals who earn less than $120,000 every year or couples whose income is less than $240,000 and have enrolled themselves in an income-driven repayment plan.

Watch:&nbsp;US: Donald Trump says states should decide abortion rights

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-donald-trump-says-states-should-decide-abortion-rights-709201/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

According to the Education Department, 25 million people will be eligible for that relief, which includes 23 million whose interest will be completely erased.

In the new proposal, the loans will also get cancelled for the borrowers who are eligible for different federal forgiveness programmes but have not applied. It is also applicable to the Public Service Loan Forgiveness programme and income-driven repayment plans.

The debt of the borrowers, who have been repaying undergraduate loans for 20 years or more, will be cancelled. Those who have been paying graduate school debt for the last 25 years will also get relief as per the proposal.&nbsp;

The Biden administration has claimed to cancel the loans of more than two&nbsp;million people.&nbsp;

(With inputs from agencies)

In a bid to woo the young generation in the upcoming general elections, United States President Joe Biden made another attempt at student loan cancellation. With the new plan, President Biden is hoping to deliver on a major campaign promise, which he has so far not been able to fulfil.

In a bid to woo the young generation in the upcoming general elections, United States President Joe Biden made another attempt at student loan cancellation. With the new plan, President Biden is hoping to deliver on a major campaign promise, which he has so far not been able to fulfil. Biden, on his visit to Wisconsin on Monday (April 8), gave a detailed proposal as per which the debt loan of around 25 million Americans will be cancelled. For months, the plan is being worked out after the first attempt of Biden at mass cancellation was rejected by the Supreme Court. The decision of the court was called by Biden a "mistake", as he gave orders to the Education Department to make a new plan by using a different legal authority. In comparison to his original plan, Biden's latest proposal is more targeted and focused on those for whom student loan is a major hurdle. Also Read: Biden administration to grant Samsung a $6.6 bn subsidy for Texas chip expansion The plans, which were detailed by presumptive Democratic presidential nominee Biden in Madison, Wisconsin, included cancelling up to $20,000 of accrued and capitalised interest for borrowers, without taking into consideration their income. According to the Biden administration, this will cancel the entire interest for 23 million borrowers. Who will benefit from Biden's new proposal? The new proposal of Biden will offer cancellation of loans to five categories of borrowers. According to the proposal, the student loan of those borrowers whose debt has grown due to unpaid interest will be cancelled. The government will cancel around $20,000 in interest for Americans who currently owe way more than what they had borrowed originally. However, this cap will not be applicable to individuals who earn less than $120,000 every year or couples whose income is less than $240,000 and have enrolled themselves in an income-driven repayment plan. Watch: US: Donald Trump says states should decide abortion rights According to the Education Department, 25 million people will be eligible for that relief, which includes 23 million whose interest will be completely erased. In the new proposal, the loans will also get cancelled for the borrowers who are eligible for different federal forgiveness programmes but have not applied. It is also applicable to the Public Service Loan Forgiveness programme and income-driven repayment plans. The debt of the borrowers, who have been repaying undergraduate loans for 20 years or more, will be cancelled. Those who have been paying graduate school debt for the last 25 years will also get relief as per the proposal. The Biden administration has claimed to cancel the loans of more than two million people. (With inputs from agencies)

Biden plans to cancel student loan debts. Here's what it means for 25mn Americans

China is the largest bilateral creditor to Sri Lanka, which in May 2022 became the first Asian lower-middle income country to default on its sovereign debt in two decades. Watch to know more.

Decoded: China's debt-trap diplomacy

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