The world's economic output will exceed $100 trillion for the first time in the year 2022. A London based think tank CEBR has predicted China will become world's top economy in dollar terms by the year 2030.

The world's economic output will exceed $100 Trillion dollars in the year 2022

South Asia's economic crisis worsens amid the ongoing COVID-19 pandemic. Indian Rupee plunges against US Dollar, whereas Sri Lanka's foreign reserve is depleting rapidly.

South Asia's economic crisis: India & Sri Lanka facing financial woes amid the COVID pandemic

Sri Lanka is going through a severe economic crisis. The island nation is struggling to import oil and thus resorted to price hikes to discourage consumption. The CPC raised the price of petrol by Rs 20 and diesel by Rs 10. It is now selling petrol at Rs 177 and diesel at Rs 121 a litre.

Sri Lanka hikes petrol and diesel prices as economic crisis worsens

Taliban officials appealed to the international community to help Afghanistan as the country currently is in dire straits, facing an economic and humanitarian crisis, which has created fears of another refugee exodus.

Taliban officials appealed to the international community to help Afghanistan as the country currently is in dire straits, facing an economic and humanitarian crisis, which has created fears of another refugee exodus. The crisis has been escalated ever since the Taliban took control of Afghanistan in August and, in immediate response, major donors halted their support for the country by freezing funds. Afghanistan also faced challenges of drought caused by global warming. "The impact of the frozen funds is on the common people and not Taliban authorities," deputy Foreign Minister, Sher Mohammad Abbas Stanikzai said at a special meeting meant to mark the UN's international migrants day. ALSO READ | Rewind 2021: When Taliban in Afghanistan became the 'new normal' In the conference, which was attended by representatives of the International Organization for Migration (IOM) and UNHCR, the United Nations refugee organisation, he appealed to the countries like the United States to help Afghanistan recover after decades of war. "If the political and economic situation doesn't change, there will be more migration," Stanikzai added. As per repeated warnings by the United Nations, Afghanistan is on the brink of the world's worst humanitarian crisis. However, international donors recently agreed to release $280 million in aid to Afghanistan. The Afghanistan Reconstruction Trust Fund (ARTF) will go "to provide humanitarian assistance to the people of Afghanistan at this critical time," the World Bank said in a statement, which was released on Friday (December 10). ALSO READ | Amid concerns of extreme poverty, Taliban manages to prepare new Afghan budget The Taliban regime is also looking forward to bridging the gap between other countries as made a fresh appeal on Friday (December 17) for Afghanistan's seat at the United Nations after the ambassador of the former US-backed government left his post. The UN seat, and some other embassies abroad, are at the centre of a tug-of-war between exiled diplomats of the old government and Afghanistan's new Islamist rulers. No country has yet recognised the Taliban regime. × (With inputs from agencies)

Taliban officials appeal for international help to combat a deepening economic crisis in Afghanistan

In a bid to increase its depleting forex reserves, the Sri Lankan government has reportedly decided to lease out about 50 valuable plots to foreign investors for development projects.

Sri Lankan government to lease 50 valuable plots to foreign investors amid economic crisis

Afghanistan's economic collapse is "happening before our eyes", says the UN humanitarian chief, as he called on the international community to intervene to avert further deaths.

Marty Griffiths told The Associated Press on Thursday that donor nations need to agree that, in addition to emergency humanitarian aid, they must meet Afghans' basic needs like education, hospitals, electricity and paying civil servants. As per him it is also essential to inject liquidity into the economy, which has seen the banking system "pretty well shut down."

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/in-afghanistan-the-al-qaida-extremist-group-has-grown-slightly-us-army-general-435653" hreflang="en">In Afghanistan, the al-Qaida extremist group has grown slightly: US Army General</a>

"We're seeing the economic collapse being exponential," he said. "It's getting more and more dire by the week."

The liquidity issue in Afghanistan must be resolved by the end of the year, and money must be funnelled to frontline service workers during the winter, Griffiths said. He added that the worsening economic situation makes him rethink his earlier belief that Afghanistan could get through the winter with only humanitarian aid.

Four million children are out of school and nine million more will be soon, he said, because 70 per cent of teachers have not been paid since August.&nbsp;

"And if we don't make that happen, all that discussion about the right of women and girls going to school becomes academic," he said.

"So, my message today is a wake-up call about the humanitarian consequences of an economic collapse and the need to take urgent action," Griffiths said.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/taliban-writes-to-afghan-missions-globally-to-fall-in-line-gets-tepid-response-434953" hreflang="en">Taliban writes to Afghan missions globally to fall in line, gets tepid response</a>

Despite Taliban promises of inclusion and tolerance toward women and ethnic minorities, the international community has been dismayed by their actions, which include renewing restrictions on women and appointing an all-male government.

As a result of the Taliban takeover, Afghanistan's aid-dependent economy was thrown into turmoil. Due to lack of clarity about the new government, Afghanistan's USD 9 billion in reserves, which are mostly held in the United States, were frozen and the International Monetary Fund blocked about USD 450 million.

Taliban leaders have banned foreign currency transactions and urged the US to ease sanctions so that teachers, doctors, and other government employees can be paid.

Griffiths said the UN is asking the US and other donors for money; which, he said, will not go to the Taliban, but instead directly to teachers, doctors, electricity providers, and other civil servants.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/facing-economic-collapse-afghanistan-is-gripped-by-starvation-434207" hreflang="en">Facing economic collapse, Afghanistan is gripped by starvation</a>

He said the consequences of Afghanistan's collapsed economy are becoming more visible -- reports of hospitals without electricity, malnutrition, and three or four children sharing one bed, as well as tens of thousands of unpaid doctors, teachers, and civil servants struggling to survive.

Despite the fact that the United States has always supported the provision of electricity in Afghanistan, he noted that 80 per cent of the electricity sources are "now at the brink of stoppage, and without electricity you have automatic consequences."

Watch |&nbsp;Desperation drives thousands of Afghans to cross into Iran

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/desperation-drives-thousands-of-afghans-to-cross-into-iran-434926/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Griffiths said the UN hoped to see USD 700 million come in by January 31 for services for the Afghan people. He said the World Bank reprogrammed USD 280 million to be used for humanitarian assistance in Afghanistan.

Unless crucial services are provided to the Afghan people, Griffiths warned, "we know what's going to happen."

(With inputs from agencies) 
&nbsp;

Afghanistan's economic collapse is "happening before our eyes", says the UN humanitarian chief, as he called on the international community to intervene to avert further deaths.

Afghanistan's economic collapse is "happening before our eyes", says the UN humanitarian chief, as he called on the international community to intervene to avert further deaths. Marty Griffiths told The Associated Press on Thursday that donor nations need to agree that, in addition to emergency humanitarian aid, they must meet Afghans' basic needs like education, hospitals, electricity and paying civil servants. As per him it is also essential to inject liquidity into the economy, which has seen the banking system "pretty well shut down." Also read | In Afghanistan, the al-Qaida extremist group has grown slightly: US Army General "We're seeing the economic collapse being exponential," he said. "It's getting more and more dire by the week." The liquidity issue in Afghanistan must be resolved by the end of the year, and money must be funnelled to frontline service workers during the winter, Griffiths said. He added that the worsening economic situation makes him rethink his earlier belief that Afghanistan could get through the winter with only humanitarian aid. Four million children are out of school and nine million more will be soon, he said, because 70 per cent of teachers have not been paid since August. "And if we don't make that happen, all that discussion about the right of women and girls going to school becomes academic," he said. "So, my message today is a wake-up call about the humanitarian consequences of an economic collapse and the need to take urgent action," Griffiths said. Also read | Taliban writes to Afghan missions globally to fall in line, gets tepid response Despite Taliban promises of inclusion and tolerance toward women and ethnic minorities, the international community has been dismayed by their actions, which include renewing restrictions on women and appointing an all-male government. As a result of the Taliban takeover, Afghanistan's aid-dependent economy was thrown into turmoil. Due to lack of clarity about the new government, Afghanistan's USD 9 billion in reserves, which are mostly held in the United States, were frozen and the International Monetary Fund blocked about USD 450 million. Taliban leaders have banned foreign currency transactions and urged the US to ease sanctions so that teachers, doctors, and other government employees can be paid. Griffiths said the UN is asking the US and other donors for money; which, he said, will not go to the Taliban, but instead directly to teachers, doctors, electricity providers, and other civil servants. Also read | Facing economic collapse, Afghanistan is gripped by starvation He said the consequences of Afghanistan's collapsed economy are becoming more visible -- reports of hospitals without electricity, malnutrition, and three or four children sharing one bed, as well as tens of thousands of unpaid doctors, teachers, and civil servants struggling to survive. Despite the fact that the United States has always supported the provision of electricity in Afghanistan, he noted that 80 per cent of the electricity sources are "now at the brink of stoppage, and without electricity you have automatic consequences." Watch | Desperation drives thousands of Afghans to cross into Iran Griffiths said the UN hoped to see USD 700 million come in by January 31 for services for the Afghan people. He said the World Bank reprogrammed USD 280 million to be used for humanitarian assistance in Afghanistan. Unless crucial services are provided to the Afghan people, Griffiths warned, "we know what's going to happen." (With inputs from agencies)

Afghanistan's economic collapse is happening 'before our eyes': UN

India and Sri Lanka have framed a four-point package to deepen economic cooperation and to help the island nation cope with economic problems. The package was finalised during Sri Lankan finance minister Basil Rajapaksa's visit to India.

India, Sri Lanka finalise four-point plan to tackle economic crisis

Thousands of people took to the streets of Sri Lanka's capital to protest against worsening economic conditions including shortages of fuel and essential goods.

Sri Lankans take out protests against worsening economic conditions

Thousands of people protest against economic crisis in Sri Lanka

Thousands of people took to the streets of Sri Lanka's capital to protest against worsening economic conditions including shortages of fuel and essential goods. The protests in Colombo were led by the country's main opposition parties, the United People's Force, the opposition has blamed the economic crisis on President Rajapaksa's government.

Sri Lanka faces economic crisis, opposition blames President Rajapaksa's government

Pakistan is in the grip of a serious economic crisis, with the country requiring USD 51.6 billion in gross external funding over a two-year period (2021-2023) to meet its demands.

Despite the IMF's highly conservative forecasts, Pakistan's gross external finance demand is USD 23.6 billion in 2021-22 and USD 28 billion in 2022-23, according to The News International. 
 
<a href="https://www.wionews.com/south-asia/naya-pakistan-15-million-unemployed-pakistanis-apply-for-a-peons-post-416583">Also read | 'Naya Pakistan': 1.5 million unemployed Pakistanis apply for a peon's post</a>

Pakistani officials are making last-ditch efforts to reach an agreement with the International Monetary Fund (IMF) at the staff level to bridge the gap in external funding requirements. 
 
Watch | Fears of US sanctions surging affects Pakistan's economic fragility

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/fears-of-us-sanctions-surging-affects-pakistans-economic-fragility-417601/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Without a deal with the IMF under the existing USD 6 billion Extended Fund Facility (EFF) during the ongoing talks in Washington, this massive gross external financing requirement will be jeopardised, according to The News International, due to the suspension of programme loans from other multilateral creditors such as the World Bank (WB) and Asian Development Bank (ADB).

The World Bank and the Asian Development Bank will continue to offer project loans, but given the capacity to complete projects, the payout will remain pitifully low.

According to The News International, credit rating agencies may further lower the country's ratings, making raising cash through the issuing of international bonds more expensive.

According to official sources, the IMF is requesting that distortions in the taxing system be removed, and that varied GST exemptions and rates be harmonised with the normal rate of 17 percent.&nbsp;

These depressing figures show that Pakistan is forced to borrow more money from local and foreign sources to pay its obligations, including loan repayments, since it has completely failed to implement appropriate changes in its tax collecting mechanisms.&nbsp;

(With inputs from agencies)&nbsp;

Pakistan is in the grip of a serious economic crisis, with the country requiring USD 51.6 billion in gross external funding over a two-year period (2021-2023) to meet its demands.

Pakistan is in the grip of a serious economic crisis, with the country requiring USD 51.6 billion in gross external funding over a two-year period (2021-2023) to meet its demands. Despite the IMF's highly conservative forecasts, Pakistan's gross external finance demand is USD 23.6 billion in 2021-22 and USD 28 billion in 2022-23, according to The News International. Also read | 'Naya Pakistan': 1.5 million unemployed Pakistanis apply for a peon's post Pakistani officials are making last-ditch efforts to reach an agreement with the International Monetary Fund (IMF) at the staff level to bridge the gap in external funding requirements. Watch | Fears of US sanctions surging affects Pakistan's economic fragility Without a deal with the IMF under the existing USD 6 billion Extended Fund Facility (EFF) during the ongoing talks in Washington, this massive gross external financing requirement will be jeopardised, according to The News International, due to the suspension of programme loans from other multilateral creditors such as the World Bank (WB) and Asian Development Bank (ADB). The World Bank and the Asian Development Bank will continue to offer project loans, but given the capacity to complete projects, the payout will remain pitifully low. According to The News International, credit rating agencies may further lower the country's ratings, making raising cash through the issuing of international bonds more expensive. According to official sources, the IMF is requesting that distortions in the taxing system be removed, and that varied GST exemptions and rates be harmonised with the normal rate of 17 percent. These depressing figures show that Pakistan is forced to borrow more money from local and foreign sources to pay its obligations, including loan repayments, since it has completely failed to implement appropriate changes in its tax collecting mechanisms. (With inputs from agencies)

Pakistan's unending economic crisis: Imran govt needs $51.6 billion external financing over two year period

Crippled economy, excruciating debt obligations, dwindling forex reserves, and a looming health crisis this is what describes Sri Lanka's current economic situation.

Sri Lanka: COVID-19 pandemic & plunging economy leads to crisis

Economic crisis adds to the misery of Afghans. The prices of everyday items are rising. Billions of dollars of aids stalled, there are restrictions on cash withdrawal from banks and the Taliban are yet to form a new government. WION's Anas Mallick gets you a ground report.

WION Ground Report: While world fears Taliban, Afghans worry about inflation

Lebanon has been struggling to survive in the ongoing economic crisis and a study has revealed that a typical family is now spending five times the minimum wage on food alone.

Inflation in the country has been described as one of the worst financial crisis since the 1850s. It has also caused more than half of the country below the poverty line.

Now, the study has revealed that while a family is typically having to spend five times the minimum wage on food, this does not include other necessities such as the additional cost of water, electricity, and cooking gas.

Also read |&nbsp;<a data-ctorig="https://www.wionews.com/world/lebanon-few-days-away-from-social-explosion-pm-diab-396317" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/lebanon-few-days-away-from-social-explosion-pm-diab-396317&amp;sa=U&amp;ved=2ahUKEwjq_OjDovTxAhW_zDgGHSTBCwwQFjAAegQIBBAC&amp;usg=AOvVaw1stZzhRivQJT1uW_di6qPD" dir="ltr" href="https://www.wionews.com/world/lebanon-few-days-away-from-social-explosion-pm-diab-396317" target="_blank">Lebanon&nbsp;few days away from social explosion: PM Diab</a>

As per data, a family of five was now spending nearly 3.5 million Lebanese pounds on food alone in a month. This has pushed several people below the poverty line as the minimum wage of the country is 675,000 Lebanese pounds.

The minimum wage of Lebanon was, at one point, equivalent to $450. However, now it struggles to fetch $30 on the black market.

Also read |&nbsp;<a href="https://www.wionews.com/world/diapers-and-rags-lebanon-crisis-plunges-women-into-period-poverty-395140">Diapers and rags: Lebanon crisis plunges women into period poverty</a>

While the value of the Lebanese pound decreased in front of the dollar, the food prices have soared by nearly 700 per cent in the past two years and the prices have seen a surge in the recent weeks, the Observatory reported.

"The price of a basic food basket increased by more than 50 percent in less than a month," it said.

Experts have labelled this as a very alarming trend in the country. "We're witnessing now an exponential increase in a short period of time," said Nasser Yassin, the head of the Observatory.

Lebanon has been struggling to survive in the ongoing economic crisis and a study has revealed that a typical family is now spending five times the minimum wage on food alone.

Lebanon has been struggling to survive in the ongoing economic crisis and a study has revealed that a typical family is now spending five times the minimum wage on food alone. Inflation in the country has been described as one of the worst financial crisis since the 1850s. It has also caused more than half of the country below the poverty line. Now, the study has revealed that while a family is typically having to spend five times the minimum wage on food, this does not include other necessities such as the additional cost of water, electricity, and cooking gas. Also read | Lebanon few days away from social explosion: PM Diab As per data, a family of five was now spending nearly 3.5 million Lebanese pounds on food alone in a month. This has pushed several people below the poverty line as the minimum wage of the country is 675,000 Lebanese pounds. The minimum wage of Lebanon was, at one point, equivalent to $450. However, now it struggles to fetch $30 on the black market. Also read | Diapers and rags: Lebanon crisis plunges women into period poverty While the value of the Lebanese pound decreased in front of the dollar, the food prices have soared by nearly 700 per cent in the past two years and the prices have seen a surge in the recent weeks, the Observatory reported. "The price of a basic food basket increased by more than 50 percent in less than a month," it said. Experts have labelled this as a very alarming trend in the country. "We're witnessing now an exponential increase in a short period of time," said Nasser Yassin, the head of the Observatory.

Lebanon families spending five times minimum wage on food alone: Study

Coronavirus cases in Nepal are skyrocketing and hospitals in the country are overwhelmed with the huge influx of COVID-19 patients. Prime Minister KP Sharma Oli is seeking help from other nations and also is under pressure because of the political crisis that is looming over his government.&nbsp;

“Nepal is facing the worst situation. As the pandemic is currently ravaging the country, we are trying to ensure continuous supply of food and prioritise the food security of the citizens. We need to boost our online business, e-commerce companies and meet the demands of our consumers,” Moti Lal Dugar, special economic advisor to PM Oli told WION. &nbsp;

“All the flights have been suspended and many borders with India have been closed, which will result in serious effects on the import and export of goods. We are dependent on India majorly for raw materials. This will be a challenge for us. India is the biggest market for Nepal including China,” Dugar added.&nbsp;

He said the government has limited resources but is trying to provide market to small industries as 'the country cannot be dependent on imports for long’.&nbsp;

As Nepal’s economy is heavily dependent on remittance, the economic advisor said, “Due to the pandemic, Nepali nationals working in different countries are coming back home. So, for them, we are trying to generate employment.”&nbsp;

Continued political instability and weak governance is hampering the development initiatives in the country. &nbsp;

Nepal’s gross domestic product (GDP) is anticipated to grow by 3.1% in fiscal year (FY) 2021 from a contraction of 1.9% in FY2020, says the Asian Development Outlook (ADO) 2021, the flagship economic publication of the Asian Development Bank (ADB).&nbsp;

The fiscal year 2020-21 ends in mid July and the country is expected to recover from the financial crisis triggered due to nationwide lockdown in 2020, but the country has been hit by the second wave of coronavirus and is again under lockdown. &nbsp;&nbsp;

WION asked the economic advisor about the expansion and investment in the health sector as the country is grappling with the coronavirus, he said, the “situation is under control.” &nbsp;

“The number of wards are being increased in both private and government hospitals. There are vacant government-owned buildings, which will be used as isolation wards. The pharmaceutical industries, which were closed, are being provided with facilities to revive,” Dugar told WION. &nbsp;

He said Nepal is manufacturing masks, sanitizers and ventilators and more doctors are being trained to treat COVID-19 patients.&nbsp;

According to a World Bank Report, the economic benefits of vaccination are huge: The current vaccination campaign in South Asia will prevent a cumulated 10 per cent GDP loss in 2022 and beyond, at the cost of up to 0.55% of GDP in the region.&nbsp;

“Nepal is trying to reach a deal with Russia for two million Sputnik V COVID-19 vaccines. There is an ongoing decision with China. Further, Nepal has paid the due amount to India for two million doses of Covishield vaccines,” Dugar told WION. &nbsp;&nbsp;

Dugar said government has aimed to vaccinate 60-70 per cent of population by the end of the year 2021. &nbsp;

Nepal is currently under tremendous pressure due to second wave of coronavirus, economic crisis and political instability. &nbsp;

Speaking to WION, Opposition Nepali Congress lawmaker Pradeep Giri said, “Nepal is in a very confusing state. The constitution, which was so greatly installed and praised, is now very much being questioned.”&nbsp;

Recently, PM Oli-led government lost majority in the House of Representatives after Pushpa Kamal Dahal 'Prachanda' led-CPN Maoist Centre withdrew its support to the Prime Minister. &nbsp;

“Mr Oli wants to get an early election under his leadership and other parties are not happy about it. So, the parties are trying for a fresh election, which is more impartial and in a judicious way. We cannot say what will be the outcome,” Giri told WION. &nbsp;

He said Nepal is a very poor country and does not have resources like other countries and Nepal’s domestic politics is impacting its foreign relations.&nbsp;

Speaking on the impacts of domestic politics on international relations, he said, “China has been showing a very keen interest in the affairs of the Nepalese politics. With the increase in China’s interest, Americans have become equally ambitious and so the European Union.” &nbsp;

Sooner or later, the country would have to seek a fresh mandate of the people to ensure long-term peace and stability.&nbsp;

Coronavirus cases in Nepal are skyrocketing and hospitals in the country are overwhelmed with the huge influx of COVID-19 patients. Prime Minister KP Sharma Oli is seeking help from other nations and also is under pressure because of the political crisis that is looming over his government.

Coronavirus cases in Nepal are skyrocketing and hospitals in the country are overwhelmed with the huge influx of COVID-19 patients. Prime Minister KP Sharma Oli is seeking help from other nations and also is under pressure because of the political crisis that is looming over his government. “Nepal is facing the worst situation. As the pandemic is currently ravaging the country, we are trying to ensure continuous supply of food and prioritise the food security of the citizens. We need to boost our online business, e-commerce companies and meet the demands of our consumers,” Moti Lal Dugar, special economic advisor to PM Oli told WION. “All the flights have been suspended and many borders with India have been closed, which will result in serious effects on the import and export of goods. We are dependent on India majorly for raw materials. This will be a challenge for us. India is the biggest market for Nepal including China,” Dugar added. He said the government has limited resources but is trying to provide market to small industries as 'the country cannot be dependent on imports for long’. As Nepal’s economy is heavily dependent on remittance, the economic advisor said, “Due to the pandemic, Nepali nationals working in different countries are coming back home. So, for them, we are trying to generate employment.” Continued political instability and weak governance is hampering the development initiatives in the country. Nepal’s gross domestic product (GDP) is anticipated to grow by 3.1% in fiscal year (FY) 2021 from a contraction of 1.9% in FY2020, says the Asian Development Outlook (ADO) 2021, the flagship economic publication of the Asian Development Bank (ADB). The fiscal year 2020-21 ends in mid July and the country is expected to recover from the financial crisis triggered due to nationwide lockdown in 2020, but the country has been hit by the second wave of coronavirus and is again under lockdown. WION asked the economic advisor about the expansion and investment in the health sector as the country is grappling with the coronavirus, he said, the “situation is under control.” “The number of wards are being increased in both private and government hospitals. There are vacant government-owned buildings, which will be used as isolation wards. The pharmaceutical industries, which were closed, are being provided with facilities to revive,” Dugar told WION. He said Nepal is manufacturing masks, sanitizers and ventilators and more doctors are being trained to treat COVID-19 patients. According to a World Bank Report, the economic benefits of vaccination are huge: The current vaccination campaign in South Asia will prevent a cumulated 10 per cent GDP loss in 2022 and beyond, at the cost of up to 0.55% of GDP in the region. “Nepal is trying to reach a deal with Russia for two million Sputnik V COVID-19 vaccines. There is an ongoing decision with China. Further, Nepal has paid the due amount to India for two million doses of Covishield vaccines,” Dugar told WION. Dugar said government has aimed to vaccinate 60-70 per cent of population by the end of the year 2021. Nepal is currently under tremendous pressure due to second wave of coronavirus, economic crisis and political instability. Speaking to WION, Opposition Nepali Congress lawmaker Pradeep Giri said, “Nepal is in a very confusing state. The constitution, which was so greatly installed and praised, is now very much being questioned.” Recently, PM Oli-led government lost majority in the House of Representatives after Pushpa Kamal Dahal 'Prachanda' led-CPN Maoist Centre withdrew its support to the Prime Minister. “Mr Oli wants to get an early election under his leadership and other parties are not happy about it. So, the parties are trying for a fresh election, which is more impartial and in a judicious way. We cannot say what will be the outcome,” Giri told WION. He said Nepal is a very poor country and does not have resources like other countries and Nepal’s domestic politics is impacting its foreign relations. Speaking on the impacts of domestic politics on international relations, he said, “China has been showing a very keen interest in the affairs of the Nepalese politics. With the increase in China’s interest, Americans have become equally ambitious and so the European Union.” Sooner or later, the country would have to seek a fresh mandate of the people to ensure long-term peace and stability.

Pandemic, political instability, economic crisis rattles Nepal  

American CEOs took home $13.7 million in salaries despite a pandemic-driven economic slump. How did the corporate world beat the worst economic crisis since World War II? WION's Palki Sharma tells you.

Gravitas: Fat pay cheques, massive profits in a pandemic year

Ecuador’s economic crisis is worsening. Pandemic has pushed one-third of Ecuador into the poverty. Ecuador hospitals are struggling to cope with surge in cases.

Ecuador: Country's overall debt stands at $64 Billion

Britain’s coronavirus-ravaged economy slumped by 9.9% for the year, suffered its biggest crash in output in more than 300 years.

UK coronavirus-ravaged economy slumped by 9.9%

Thousands of people took to the streets of Tunisia's capital city Tunis on Saturday people protested against the government and demanded relief from an ongoing economic crisis they demanded release who arrested this year during the protest.

Tension ran high in Tunisia's capital, protesters demand relief from an ongoing economic crisis

In a small impoverished mountain village in Eastern Guatemala residents find themselves in dire straits, sinking deeper into poverty. The families are struggling to survive, the lives of children have been lost and the crisis deepens. WION brings you a report.

Guatemalan mourn death of children as hunger spreads across La Palmilla

The coronavirus pandemic has plunged the world into bit of an economic crisis. Even the United States is struggling and American families are finding it extremely hard to make ends meet which is resulting in nuclear families disintegrating. WION brings you a report.

Nuclear families disintegrating in America, pandemic's economic fallout expedites trend

Canada's Finance Minister&nbsp;Bill Morneau has resigned amid controversies of charity scandal and fallout with the Canadian Prime Minister.

"This morning I went to the prime minister and I tendered my resignation," Morneau announced on Monday morning.

He claims the reason behind this decision is that he does not plan to run for the parliament again and would prefer if the PM Justin Trudeau finds someone for long term.&nbsp;"It`s appropriate that the prime minister find someone with a longer term approach for the role, since I`m not running for office," he said.

However, his reason is being seen as a cover-up for the real issues. Morneau, the 57-year-old minister, had been on this job since 2015. However, recently there had been rumours about his falling out with Trudeau, after which the PM had expressed confidence in his finance minister.

<a href="https://www.wionews.com/world/canada-refuses-to-release-emails-over-huawei-cfo-meng-wanzhous-arrest-321356">Also read:&nbsp;Canada refuses to release emails over Huawei CFO Meng Wanzhou's arrest</a>

Morneau, who claims to aim to become&nbsp;the next secretary general of the Organisation for Economic Cooperation and Development (OECD) rather than the Finance Minister, was also surrounded by controversies of a charity scandal after he&nbsp;disclosed he had forgotten to repay travel expenses covered for him by a charity at the heart of an ethics probe. This upset several cabinet members and led to an investigation on Morneau and the PM from the Ethics body of the charity.

His decision to step down, when the country is facing economic challenges in a pandemic, has not been appreciated by the opposition.&nbsp;"I doubt you`ll be seeing other finance ministers around the world step down at this time of elevated economic and fiscal uncertainty," David Rosenberg, chief economist at Rosenberg Research and Associates. "It`s like a boxer being forced to take his gloves off in the fifth round."

<a href="https://www.wionews.com/world/over-9000-canadian-government-accounts-hacked-320943">Also read:&nbsp;Over 9,000 Canadian government accounts hacked</a>

The opposition has labelled this step-down as a proof of the government facing an inner chaos.

Conservative Party leader Andrew Scheer took to Twitter to condemn this resignation. Calling it a 'scapegoat' move, he claimed that the&nbsp;"government is so consumed by scandal that Trudeau has amputated his right hand to try and save himself."

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Bill Morneau’s “resignation” is further proof of a government in chaos. 
 
At a time when Canadians are worried about their health and their finances , Justin Trudeau’s government is so consumed by scandal that Trudeau has amputated his right hand to try and save himself. 1/3
— Andrew Scheer (@AndrewScheer) <a href="https://twitter.com/AndrewScheer/status/1295511165615972352?ref_src=twsrc%5Etfw">August 18, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

"We had a little bit of a sell-the-rumour type weakness in the lead up to the resignation," said Ray Attrill, head of forex strategy at National Australia Bank in Sydney. "There doesn’t seem to be any suggestion at this stage that this any broader implications for the Canadian government."

Justin Trudeau, however, thanked the minister and his friend for his service over the past five years and assured that he will be lending his full support to Morneau in his bid to head the OECD.

Possible replacements for the key post include Deputy Prime Minister Chrystia Freeland, Foreign Minister Francois-Philippe Champagne and President of Canada`s Treasury Board Jean-Yves Duclos.

While the resignation became a point of debate among the two political parties,&nbsp;the Canadian dollar showed little reaction to the news.

Canada's Finance Minister Bill Morneau has resigned amid controversies of charity scandal and fallout with the Canadian Prime Minister. "This morning I went to the prime minister and I tendered my resignation," Morneau announced on Monday morning.

Canada's Finance Minister Bill Morneau has resigned amid controversies of charity scandal and fallout with the Canadian Prime Minister. "This morning I went to the prime minister and I tendered my resignation," Morneau announced on Monday morning. He claims the reason behind this decision is that he does not plan to run for the parliament again and would prefer if the PM Justin Trudeau finds someone for long term. "It`s appropriate that the prime minister find someone with a longer term approach for the role, since I`m not running for office," he said. However, his reason is being seen as a cover-up for the real issues. Morneau, the 57-year-old minister, had been on this job since 2015. However, recently there had been rumours about his falling out with Trudeau, after which the PM had expressed confidence in his finance minister. Also read: Canada refuses to release emails over Huawei CFO Meng Wanzhou's arrest Morneau, who claims to aim to become the next secretary general of the Organisation for Economic Cooperation and Development (OECD) rather than the Finance Minister, was also surrounded by controversies of a charity scandal after he disclosed he had forgotten to repay travel expenses covered for him by a charity at the heart of an ethics probe. This upset several cabinet members and led to an investigation on Morneau and the PM from the Ethics body of the charity. His decision to step down, when the country is facing economic challenges in a pandemic, has not been appreciated by the opposition. "I doubt you`ll be seeing other finance ministers around the world step down at this time of elevated economic and fiscal uncertainty," David Rosenberg, chief economist at Rosenberg Research and Associates. "It`s like a boxer being forced to take his gloves off in the fifth round." Also read: Over 9,000 Canadian government accounts hacked The opposition has labelled this step-down as a proof of the government facing an inner chaos. Conservative Party leader Andrew Scheer took to Twitter to condemn this resignation. Calling it a 'scapegoat' move, he claimed that the "government is so consumed by scandal that Trudeau has amputated his right hand to try and save himself." Bill Morneau’s “resignation” is further proof of a government in chaos. At a time when Canadians are worried about their health and their finances , Justin Trudeau’s government is so consumed by scandal that Trudeau has amputated his right hand to try and save himself. 1/3 — Andrew Scheer (@AndrewScheer) August 18, 2020 × "We had a little bit of a sell-the-rumour type weakness in the lead up to the resignation," said Ray Attrill, head of forex strategy at National Australia Bank in Sydney. "There doesn’t seem to be any suggestion at this stage that this any broader implications for the Canadian government." Justin Trudeau, however, thanked the minister and his friend for his service over the past five years and assured that he will be lending his full support to Morneau in his bid to head the OECD. Possible replacements for the key post include Deputy Prime Minister Chrystia Freeland, Foreign Minister Francois-Philippe Champagne and President of Canada`s Treasury Board Jean-Yves Duclos. While the resignation became a point of debate among the two political parties, the Canadian dollar showed little reaction to the news.

Canadian Finance Minister resigns amid controversies and scandals

The number of migrants landing on Italy’s shores has more than doubled in the last year as an economic crisis in Tunisia fuels migration in boats across the Mediterranean, Interior Minister Luciana Lamorgese said on Saturday.

More than 21,000 people reached Italy between August 2019 and the end of July, up 148 per cent year-on-year, the minister said, speaking at an annual Aug. 15 press conference.

Lamorgese said the majority of the arrivals were “autonomous landings, hard to manage... with small boats and dinghies”, rather than those rescued at sea and brought ashore. Many of them land on Italy’s southern Mediterranean island of Lampedusa.

<a href="https://www.wionews.com/world/italy-approves-outpatient-use-for-abortion-pill-319128">Also read:&nbsp;Italy approves outpatient use for abortion pill</a>

In the 12-month period, just over 5,000 people were rescued, mainly by ships operated by NGOs, according to data from the ministry.

Over 80 per cent of the migrants reaching Italy left from Tunisia and Libya, the data showed, with Tunisia’s crisis stoking the numbers attempting the treacherous crossing.

“The numbers aren’t very high - they are certainly higher than last year’s but we must put them into context: Tunisia is in a deep economic, social and political crisis,” Lamorgese told reporters.

“We have seen entire families leave to reach Italian territory.”

<a href="https://www.wionews.com/world/france-germany-italy-threaten-sanctions-over-arms-for-libya-314396">Also read:&nbsp;France, Germany, Italy threaten sanctions over arms for Libya</a>

For years Italy has been the primary route into Europe for hundreds of thousands of asylum seekers and other migrants and Libya’s west coast a main departure point for African migrants hoping to reach Europe.

A peak was reached between August 2016 and July 2017, when almost 183,000 migrants reached Italy.

Numbers started falling due to an Italian-led effort to disrupt smuggling networks and support the Libyan coastguard to intercept boats, but have picked up in 2020.

Lamorgese’s predecessor, head of the anti-immigrant League party Matteo Salvini, took a hardline against charity ships that rescued migrants at sea, closing Italian ports and accusing the rescue groups of de facto collaboration with human traffickers.

Lamorgese said that she would meet Tunisian President Kais Saied on Monday to discuss the issue, along with Italy’s Foreign Minister Luigi di Maio and EU Commissioners Ylva Johansson and Olivér Várhelyi.

The number of migrants landing on Italy’s shores has more than doubled in the last year as an economic crisis in Tunisia fuels migration in boats across the Mediterranean, Interior Minister Luciana Lamorgese said on Saturday.

The number of migrants landing on Italy’s shores has more than doubled in the last year as an economic crisis in Tunisia fuels migration in boats across the Mediterranean, Interior Minister Luciana Lamorgese said on Saturday. More than 21,000 people reached Italy between August 2019 and the end of July, up 148 per cent year-on-year, the minister said, speaking at an annual Aug. 15 press conference. Lamorgese said the majority of the arrivals were “autonomous landings, hard to manage... with small boats and dinghies”, rather than those rescued at sea and brought ashore. Many of them land on Italy’s southern Mediterranean island of Lampedusa. Also read: Italy approves outpatient use for abortion pill In the 12-month period, just over 5,000 people were rescued, mainly by ships operated by NGOs, according to data from the ministry. Over 80 per cent of the migrants reaching Italy left from Tunisia and Libya, the data showed, with Tunisia’s crisis stoking the numbers attempting the treacherous crossing. “The numbers aren’t very high - they are certainly higher than last year’s but we must put them into context: Tunisia is in a deep economic, social and political crisis,” Lamorgese told reporters. “We have seen entire families leave to reach Italian territory.” Also read: France, Germany, Italy threaten sanctions over arms for Libya For years Italy has been the primary route into Europe for hundreds of thousands of asylum seekers and other migrants and Libya’s west coast a main departure point for African migrants hoping to reach Europe. A peak was reached between August 2016 and July 2017, when almost 183,000 migrants reached Italy. Numbers started falling due to an Italian-led effort to disrupt smuggling networks and support the Libyan coastguard to intercept boats, but have picked up in 2020. Lamorgese’s predecessor, head of the anti-immigrant League party Matteo Salvini, took a hardline against charity ships that rescued migrants at sea, closing Italian ports and accusing the rescue groups of de facto collaboration with human traffickers. Lamorgese said that she would meet Tunisian President Kais Saied on Monday to discuss the issue, along with Italy’s Foreign Minister Luigi di Maio and EU Commissioners Ylva Johansson and Olivér Várhelyi.

Number of migrants landing in Italy more than doubles in past year

An estimation by Poland's statistics office on Friday showed that the country is experiencing recession since the end of the communist era that happened three decades ago.

An estimation by Poland's statistics office on Friday showed that the country is experiencing recession since the end of the communist era that happened three decades ago. Due to the coronavirus lockdown, the country's economy shrank by 8.9 per cent in the second quarter. The economy witnessed a contraction of 0.4 per cent in the first quarter. Recession is defined two consecutive quarters of contraction. During the global financial crisis of 2008 and 2009, Poland was the only European Union member state enjoyed a healthy growth rate and avoided recession. Also read: Two patients in China test positive months after coronavirus recovery Country's GDP grew by 4.1 per cent in 2019, which was slightly lower than that of 2018 (5.3 per cent). According to the Polish Economic Institute, an independent research centre, country's economy "should recover". The Polish government has forecasted 3.4 per cent contraction this year, down from a previous prognosis of 3.7 per cent growth. The European Commission forecast in May that the Polish economy would shrink by 4.3 per cent overall in 2020 and bounce back with 4.1 per cent expansion in 2021. (Inputs from AFP)

Virus-hit Poland in first recession since communist era: Official data

Venezuelans tame economic crisis with creative solutions

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank.

As India`s economy feels the impact of the COVID-19 pandemic, macro stress tests indicate that the gross NPA ratio of all banks could increase to 12.5% by next March under a baseline scenario and may escalate to 14.7% under a very severely stressed scenario, the report said. It did not give details of that scenario.

<a href="https://www.wionews.com/india-news/coffee-day-owed-472-million-by-deceased-founders-firm-report-315761">Also read|&nbsp;Coffee Day owed $472 million by deceased founder's firm: report</a>

"The pandemic has the potential to amplify financial vulnerabilities, including corporate and household debt burdens in the case of severe economic contraction," the report said.

The semi-annual report is compiled by the Financial Stability and Development Council - an umbrella group of regulators - and released by the Reserve Bank of India.

Financial sector risks

The report highlighted that relief measures for borrowers introduced as part of measures to help India`s economy through the pandemic, such as deferments of loan and interest payments for six months, may have implications for the financial health of banks, going forward.

"Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of the relief measures," it stated.

The report also highlighted the problems for over 9,500 shadow banks, known as non-banking financial companies (NBFCs), in India, which have been battling a liquidity crisis over the last couple of years.

"The declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system," the report stated.

However, the report said contagion risks through financial networks have moderated due to the higher capital buffers introduced in recent years and a shrinking interbank market.

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday. Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank. As India`s economy feels the impact of the COVID-19 pandemic, macro stress tests indicate that the gross NPA ratio of all banks could increase to 12.5% by next March under a baseline scenario and may escalate to 14.7% under a very severely stressed scenario, the report said. It did not give details of that scenario. Also read| Coffee Day owed $472 million by deceased founder's firm: report "The pandemic has the potential to amplify financial vulnerabilities, including corporate and household debt burdens in the case of severe economic contraction," the report said. The semi-annual report is compiled by the Financial Stability and Development Council - an umbrella group of regulators - and released by the Reserve Bank of India. Financial sector risks The report highlighted that relief measures for borrowers introduced as part of measures to help India`s economy through the pandemic, such as deferments of loan and interest payments for six months, may have implications for the financial health of banks, going forward. "Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of the relief measures," it stated. The report also highlighted the problems for over 9,500 shadow banks, known as non-banking financial companies (NBFCs), in India, which have been battling a liquidity crisis over the last couple of years. "The declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system," the report stated. However, the report said contagion risks through financial networks have moderated due to the higher capital buffers introduced in recent years and a shrinking interbank market.

Indian banks' bad debt ratio could hit nearly 15% by March in worst-case scenario: Report

The coronavirus pandemic is expected to severely weaken Afghanistan`s economy, the World Bank said on Wednesday, as donor governments struggle themselves and uncertainty over peace talks curb private investment.

The World Bank said it was forecasting gross domestic product to contract between 5.5 per cent and 7.4 per cent in 2020, compared with growth of 2.9 per cent&nbsp;in 2019, with more than 70 per cent of the population expected to slip under the poverty line.

"COVID-19 has hit Afghanistan in the midst of a difficult political transition, an intensifying conflict, and significant uncertainty regarding future grant support," Henry Kerali, World Bank Afghanistan director, told reporters.

<a href="https://www.wionews.com/south-asia/european-union-in-contact-with-india-on-afghan-peace-process-officials-313291">Also read|&nbsp;European Union in contact with India on Afghan peace process: Officials</a>

Due to the lockdown, domestic government revenue is expected to fall up to 30 per cent at a time when the economists and diplomats say Afghanistan is facing a likely fall in foreign funding as countries deal with their own economic crises at home and the United States withdraws troops and attempts to usher peace talks between the insurgent Taliban and the Afghan government.

With few options to borrow and investment stalled by years conflict, the government is heavily reliant on foreign aid. Pledges made by foreign donors in 2016 run out this year, with a conference to renew pledges due in November.

"Without progress towards a sustainable peace and commitments to continued grant support from international partners, medium-term prospects appear increasingly grim," the World Bank said.

Ministry of Finance spokesman Shamroz Khan Masjedi said the government was concerned about the impact of COVID-19 on the economy.

"There will be more unemployment, more poverty and reduction in government revenue because many business and economic activities ... have stopped," he said.

The coronavirus pandemic is expected to severely weaken Afghanistan`s economy, the World Bank said on Wednesday, as donor governments struggle themselves and uncertainty over peace talks curb private investment.

The coronavirus pandemic is expected to severely weaken Afghanistan`s economy, the World Bank said on Wednesday, as donor governments struggle themselves and uncertainty over peace talks curb private investment. The World Bank said it was forecasting gross domestic product to contract between 5.5 per cent and 7.4 per cent in 2020, compared with growth of 2.9 per cent in 2019, with more than 70 per cent of the population expected to slip under the poverty line. "COVID-19 has hit Afghanistan in the midst of a difficult political transition, an intensifying conflict, and significant uncertainty regarding future grant support," Henry Kerali, World Bank Afghanistan director, told reporters. Also read| European Union in contact with India on Afghan peace process: Officials Due to the lockdown, domestic government revenue is expected to fall up to 30 per cent at a time when the economists and diplomats say Afghanistan is facing a likely fall in foreign funding as countries deal with their own economic crises at home and the United States withdraws troops and attempts to usher peace talks between the insurgent Taliban and the Afghan government. With few options to borrow and investment stalled by years conflict, the government is heavily reliant on foreign aid. Pledges made by foreign donors in 2016 run out this year, with a conference to renew pledges due in November. "Without progress towards a sustainable peace and commitments to continued grant support from international partners, medium-term prospects appear increasingly grim," the World Bank said. Ministry of Finance spokesman Shamroz Khan Masjedi said the government was concerned about the impact of COVID-19 on the economy. "There will be more unemployment, more poverty and reduction in government revenue because many business and economic activities ... have stopped," he said.

Afghanistan faces 'grim' economic outlook as pandemic wipes out growth: World Bank

The International Monetary Fund on Friday approved Egypt's request for a USD 5.2 billion loan as the country's economy reels from the financial fallout of the coronavirus pandemic.

The one-year arrangement, which comes on top of a separate USD 2.77 billion emergency financing announced last month, aims to boost Egypt's social spending, spur job creation and advance structural reforms to "put Egypt on a strong footing for sustained recovery," the IMF said in a statement.

Egypt had been one of the fastest-growing emerging markets in the world before the pandemic. Now, the IMF warned, disruptions "have worsened the economic outlook and reshuffled policy priorities." There was no immediate comment from the Egyptian government on the loan's approval.

<a href="https://www.wionews.com/world/egypt-sudan-ethiopia-wont-fill-disputed-dam-before-accord-308912">Also read|&nbsp;Egypt, Sudan: Ethiopia won't fill disputed dam before accord</a>

The Arab world's most populous country is struggling to cope with a collapse of critical sources of income, including tourism revenue, remittances from Egyptian workers abroad, shipping fees from the Suez Canal and gas and oil revenues.

Egypt only just emerged from a three-year economic overhaul after securing a USD 12 billion IMF loan in late 2016. The government's significant reforms included floating the currency, slashing key subsidies and imposing a value-added tax.

The austerity measures won President Abdel Fattah el-Sissi praise from Cairo's Western backers and bankers, and helped attract foreign investment after years of political turmoil that followed the 2011 popular uprising. But the overhaul also dramatically hiked prices for everything from electricity to drinking water, squeezing the poor and middle class.

Before the pandemic threw millions of casual laborers out of work, one in three Egyptians was already living in poverty, according to government figures.

During the pandemic, the government has handed out 500 Egyptian pounds (USD 31) a month to informal workers in need. But that seemingly hasn't solved the economic distress of millions.

The government's statistics agency reported recently that about half of all Egyptian families had been forced to borrow money because of the economic shutdown. Over 73% of citizens said their income had declined.

To fend off further financial strain, the government has resisted a harsh lockdown, instead enacting a nighttime curfew, shutting down schools, mosques, gyms and clubs, and urging citizens to wear masks and take other precautions against the virus.

Starting next week, the government plans to gradually reopen society even as it reports over 1,000 new infections and close to 100 deaths a day.

Restaurants, coffee shops, clubs and theaters will resume operations at 25% capacity, while mosques and churches will welcome worshippers after a three-month suspension. International flights will resume for tourism to destinations less hard-hit by the virus.

Health experts have cautioned that reopening for business could pose a serious risk as Egypt's coronavirus case count soars.

The country's doctors union warned last month the country was careening toward a catastrophe and that its health system was nearing collapse.

Egyptian social media have been flooded with stories of families struggling to find hospital beds for sick relatives. 
Meanwhile, the doctors union reported that five physicians have been arrested for speaking out about authorities' handling of the pandemic, as el-Sissi's government tightens its grip on information about the outbreak.

Egypt's health ministry has reported 62,755 infections, including 2,620 deaths --&nbsp;the highest death toll in the region.

The International Monetary Fund on Friday approved Egypt's request for a USD 5.2 billion loan as the country's economy reels from the financial fallout of the coronavirus pandemic.

The International Monetary Fund on Friday approved Egypt's request for a USD 5.2 billion loan as the country's economy reels from the financial fallout of the coronavirus pandemic. The one-year arrangement, which comes on top of a separate USD 2.77 billion emergency financing announced last month, aims to boost Egypt's social spending, spur job creation and advance structural reforms to "put Egypt on a strong footing for sustained recovery," the IMF said in a statement. Egypt had been one of the fastest-growing emerging markets in the world before the pandemic. Now, the IMF warned, disruptions "have worsened the economic outlook and reshuffled policy priorities." There was no immediate comment from the Egyptian government on the loan's approval. Also read| Egypt, Sudan: Ethiopia won't fill disputed dam before accord The Arab world's most populous country is struggling to cope with a collapse of critical sources of income, including tourism revenue, remittances from Egyptian workers abroad, shipping fees from the Suez Canal and gas and oil revenues. Egypt only just emerged from a three-year economic overhaul after securing a USD 12 billion IMF loan in late 2016. The government's significant reforms included floating the currency, slashing key subsidies and imposing a value-added tax. The austerity measures won President Abdel Fattah el-Sissi praise from Cairo's Western backers and bankers, and helped attract foreign investment after years of political turmoil that followed the 2011 popular uprising. But the overhaul also dramatically hiked prices for everything from electricity to drinking water, squeezing the poor and middle class. Before the pandemic threw millions of casual laborers out of work, one in three Egyptians was already living in poverty, according to government figures. During the pandemic, the government has handed out 500 Egyptian pounds (USD 31) a month to informal workers in need. But that seemingly hasn't solved the economic distress of millions. The government's statistics agency reported recently that about half of all Egyptian families had been forced to borrow money because of the economic shutdown. Over 73% of citizens said their income had declined. To fend off further financial strain, the government has resisted a harsh lockdown, instead enacting a nighttime curfew, shutting down schools, mosques, gyms and clubs, and urging citizens to wear masks and take other precautions against the virus. Starting next week, the government plans to gradually reopen society even as it reports over 1,000 new infections and close to 100 deaths a day. Restaurants, coffee shops, clubs and theaters will resume operations at 25% capacity, while mosques and churches will welcome worshippers after a three-month suspension. International flights will resume for tourism to destinations less hard-hit by the virus. Health experts have cautioned that reopening for business could pose a serious risk as Egypt's coronavirus case count soars. The country's doctors union warned last month the country was careening toward a catastrophe and that its health system was nearing collapse. Egyptian social media have been flooded with stories of families struggling to find hospital beds for sick relatives. Meanwhile, the doctors union reported that five physicians have been arrested for speaking out about authorities' handling of the pandemic, as el-Sissi's government tightens its grip on information about the outbreak. Egypt's health ministry has reported 62,755 infections, including 2,620 deaths -- the highest death toll in the region.

Egypt secures USD 5.2 billion IMF loan amid coronavirus fallout

Not just Line of Actual Control, there are tensions at Line of Control (LoC) too. There have been a number of ceasefire violations by Pakistan in the last few days, not only in the Jammu division but also in the Kashmir valley.

Since June 7, Pakistan has targeted Indian villages and military positions multiple times. There has been unprovoked firing in the sectors of Rampur, Keran and Tangdhar.

There seems to be a pattern behind Pakistan's ceasefire violations. The Pakistani Prime Minister seems to be on the same page as the Chinese president in provoking India.

<a href="Pakistan reports 132 COVID-19 deaths in 24 hours; infections rise to over 165,000">Also read|&nbsp;Pakistan reports 132 COVID-19 deaths in 24 hours; infections rise to over 165,000</a>

Imran Khan promised a 'naya Pakistan'. He vowed to end corruption. The PM&nbsp;positioned himself as a champion of austerity. Most importantly, he swore to serve the people, not the army.

Imran khan became the Prime Minister of Pakistan riding on all these promises. Then, he began complaining about how low his salary was.

He started replacing civilians in his government with army generals. He began adjusting corruption by his ministers, and&nbsp;used relief money to pay his bills.

<a href="https://www.wionews.com/south-asia/pakistan-mulls-using-dexamethasone-for-critically-ill-patients-as-covid-19-death-toll-tops-3000-306588">Also read|&nbsp;Pakistan mulls using dexamethasone for critically ill patients as COVID-19 death toll tops 3,000</a>

In short, he broke all his promises and his sham of austerity was busted.

His country is on the brink of economic collapse. Pakistan&nbsp;doesn't have enough health supplies to keep up during this pandemic, and the food sector has been crippled.

How has the Prime Minister Imran Khan expressed his&nbsp;remorse at not being able to live up to expectations? By enjoying opulent feasts!

These are not our words, but Pakistani media itself.

According to Pakistan media reports, Imran Khan was served 135 traditional dishes during his visit to Larkana in north-western Sindh.

Pakistan is starving as Imran Khan is feasting.

The most shocking and ironic thing is that his visit was supposed to be a review visit of the functioning of hospitals filled with coronavirus patients, as Sindh is the hardest-hit region in all of Pakistan. However, for Imran Khan, good food is more important.

Reports further claim that atleast 37 protocol vehicles accompanied him on his visit to the city.

All of this amid slashes in Pakistan's budget, and at a time when Imran Khan's allies are deserting him and his government is in troubled waters.

A threat to&nbsp;coalition

Sardar Akhtar Mengal, the chief of the Balochistan National Party has announced to part ways with PTI-led coalition government.

He says the PTI has failed to implement accords with allies, and that agreements and promises made to the people of Balochistan have not been kept.

Imran Khan's coalition had 184 seats in the national assembly. After this announcement,&nbsp;it will be down to 180, which&nbsp;threatens the future of this coalition.

A minimum of 172 seats are required to form a government in Pakistan's national assembly. So, if any other coalition partner pulls out,&nbsp;Imran Khan can face a vote of no confidence in the Pakistan&nbsp;assembly.

Not just Line of Actual Control, there are tensions at Line of Control (LoC) too. There have been a number of ceasefire violations by Pakistan in the last few days, not only in the Jammu division but also in the Kashmir valley.

Not just Line of Actual Control, there are tensions at Line of Control (LoC) too. There have been a number of ceasefire violations by Pakistan in the last few days, not only in the Jammu division but also in the Kashmir valley. Since June 7, Pakistan has targeted Indian villages and military positions multiple times. There has been unprovoked firing in the sectors of Rampur, Keran and Tangdhar. There seems to be a pattern behind Pakistan's ceasefire violations. The Pakistani Prime Minister seems to be on the same page as the Chinese president in provoking India. Also read| Pakistan reports 132 COVID-19 deaths in 24 hours; infections rise to over 165,000 Imran Khan promised a 'naya Pakistan'. He vowed to end corruption. The PM positioned himself as a champion of austerity. Most importantly, he swore to serve the people, not the army. Imran khan became the Prime Minister of Pakistan riding on all these promises. Then, he began complaining about how low his salary was. He started replacing civilians in his government with army generals. He began adjusting corruption by his ministers, and used relief money to pay his bills. Also read| Pakistan mulls using dexamethasone for critically ill patients as COVID-19 death toll tops 3,000 In short, he broke all his promises and his sham of austerity was busted. His country is on the brink of economic collapse. Pakistan doesn't have enough health supplies to keep up during this pandemic, and the food sector has been crippled. How has the Prime Minister Imran Khan expressed his remorse at not being able to live up to expectations? By enjoying opulent feasts! These are not our words, but Pakistani media itself. According to Pakistan media reports, Imran Khan was served 135 traditional dishes during his visit to Larkana in north-western Sindh. Pakistan is starving as Imran Khan is feasting. The most shocking and ironic thing is that his visit was supposed to be a review visit of the functioning of hospitals filled with coronavirus patients, as Sindh is the hardest-hit region in all of Pakistan. However, for Imran Khan, good food is more important. Reports further claim that atleast 37 protocol vehicles accompanied him on his visit to the city. All of this amid slashes in Pakistan's budget, and at a time when Imran Khan's allies are deserting him and his government is in troubled waters. A threat to coalition Sardar Akhtar Mengal, the chief of the Balochistan National Party has announced to part ways with PTI-led coalition government. He says the PTI has failed to implement accords with allies, and that agreements and promises made to the people of Balochistan have not been kept. Imran Khan's coalition had 184 seats in the national assembly. After this announcement, it will be down to 180, which threatens the future of this coalition. A minimum of 172 seats are required to form a government in Pakistan's national assembly. So, if any other coalition partner pulls out, Imran Khan can face a vote of no confidence in the Pakistan assembly.

Broken promises and lavish feasts: Imran Khan disappoints people of Pakistan

Argentina's debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed.

Also read:&nbsp;<a href="https://www.wionews.com/world/trump-sought-jinpings-help-for-2020-re-election-says-ex-nsa-john-bolton-306644" hreflang="en">Trump sought Jinping's help for 2020 re-election, says Ex-NSA John Bolton</a>

An Economy Ministry source told Reuters the country was sticking by its latest proposal with a net present value of around 50 cents on the dollar and warrants linked to Argentina's farm-driven exports. The offer was shared with creditors during recent talks.

The South American grains producer is in talks to revamp around $65 billion in foreign debt that has become unsustainable. The two sides have been inching closer, though tensions have simmered below the surface.

"The government believes that the creditors' proposal has an unsustainable cost for Argentines," said the Economy Ministry source, who asked not to be identified as the talks were private. Creditor groups have made counter-proposals during the process.

"The president is not going to cede any further," the source said.

The major "Ad Hoc" bondholder group, including names like Fidelity, AllianceBernstein and BlackRock, said in a statement that the Argentine government had "walked away" from a counterproposal it had made and called the talks a "failure."

Argentina's Economy Ministry released details of the latest version of its own proposal in a statement late on Wednesday, which it said had been shared with creditors. It also published two counterproposals it had received.

The ministry said creditor demands had varied widely and that some were "inconsistent" with what the country could meet.

Argentina's center-left Peronist President Alberto Fernandez said in a televised interview with network Telefé that the country would keep negotiating with creditors to try to reach an accord, but would not pay more than it was able.

"We are going to pay what we can. Not a millimeter more. And in that I am inflexible," he said.

WHO BLINKS FIRST?

A second person with knowledge of the debt negotiations and familiar with the government's thinking said the country had gone "as far as we could, but the creditors want more."

Proposed warrants tied to agricultural exports had appeared to fall short with bondholders, the person said. "The creditors saw the warrants as a perk but not as a bargaining tool strong enough to bridge the gap," he said.

Argentina, which already improved an original offer made in April, has long argued that debt sustainability analysis shows it cannot afford to pay much more. The International Monetary Fund, a major creditor, has supported that view.

"(Creditors) are not recognizing the restrictions that we set out in the debt sustainability studies that the government and the IMF did," the second person added. "Allowing the NDAs (nondisclosure agreements) to expire means we reached the limit of what we can give and the creditors have not acknowledged that the limit had been reached."

Another creditor involved in the talks with Argentina said the saber rattling was not wholly unexpected.

"There's this point in every negotiation. If you are trying to get the other side to blink, you have to at least pretend you are willing to walk away from the table," the person said.

Argentina's debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed.

Argentina's debt restructuring talks, in a tense final stretch, hit a roadblock on Wednesday with the government determined not to cede further ground after making an improved offer and a key creditor group warning that negotiations had failed. Also read: Trump sought Jinping's help for 2020 re-election, says Ex-NSA John Bolton An Economy Ministry source told Reuters the country was sticking by its latest proposal with a net present value of around 50 cents on the dollar and warrants linked to Argentina's farm-driven exports. The offer was shared with creditors during recent talks. The South American grains producer is in talks to revamp around $65 billion in foreign debt that has become unsustainable. The two sides have been inching closer, though tensions have simmered below the surface. "The government believes that the creditors' proposal has an unsustainable cost for Argentines," said the Economy Ministry source, who asked not to be identified as the talks were private. Creditor groups have made counter-proposals during the process. "The president is not going to cede any further," the source said. The major "Ad Hoc" bondholder group, including names like Fidelity, AllianceBernstein and BlackRock, said in a statement that the Argentine government had "walked away" from a counterproposal it had made and called the talks a "failure." Argentina's Economy Ministry released details of the latest version of its own proposal in a statement late on Wednesday, which it said had been shared with creditors. It also published two counterproposals it had received. The ministry said creditor demands had varied widely and that some were "inconsistent" with what the country could meet. Argentina's center-left Peronist President Alberto Fernandez said in a televised interview with network Telefé that the country would keep negotiating with creditors to try to reach an accord, but would not pay more than it was able. "We are going to pay what we can. Not a millimeter more. And in that I am inflexible," he said. WHO BLINKS FIRST? A second person with knowledge of the debt negotiations and familiar with the government's thinking said the country had gone "as far as we could, but the creditors want more." Proposed warrants tied to agricultural exports had appeared to fall short with bondholders, the person said. "The creditors saw the warrants as a perk but not as a bargaining tool strong enough to bridge the gap," he said. Argentina, which already improved an original offer made in April, has long argued that debt sustainability analysis shows it cannot afford to pay much more. The International Monetary Fund, a major creditor, has supported that view. "(Creditors) are not recognizing the restrictions that we set out in the debt sustainability studies that the government and the IMF did," the second person added. "Allowing the NDAs (nondisclosure agreements) to expire means we reached the limit of what we can give and the creditors have not acknowledged that the limit had been reached." Another creditor involved in the talks with Argentina said the saber rattling was not wholly unexpected. "There's this point in every negotiation. If you are trying to get the other side to blink, you have to at least pretend you are willing to walk away from the table," the person said.

Argentina debt talks hit roadblock as government, creditors rattle sabers

A rights activist from Pakistan-occupied Kashmir (PoK) has blamed the Pakistan army for Pakistan's negative economic growth.

Dr Amjad Ayub Mirza blamed Pakistan army and its fear among the people in power. Talking about the budget, he expressed his concern about the power the Pakistan army holds on the approving the country's budget.

"This budget has Rs 650 Billion allocated for the development purpose, while the military has been allocated a sum of Rs 1.3 Trillion. This simply means that the budget has been presented after the approval of the army," said Mirza.

<a href="https://www.wionews.com/sports/pakistans-shahid-afridi-tests-positive-for-covid-19-305565">Also read:&nbsp;Pakistan's Shahid Afridi tests positive for COVID-19</a>

"Hammad Azhar, the minister who presented the budget expressed his government's gratitude to the army on the floor of the house. This simply means that this government is powerless and scared of the army," he continued.

He alleged the ministers of spending more than what the country could afford. He claims the legislators have been spending money on luxurious things, instead of spending it on the people of several areas that haven;t received proper funding for years.

"This is the first time in the history in Pakistan that the budget is showing negative growth. It`s -0.4 per cent this time. This is a dangerous situation because it requires a lot of things to be done to convert a negative growth into positive. First and foremost, you need to stop your expenses that do not yield dividends."&nbsp;

<a href="https://www.wionews.com/india-news/our-stimulus-package-is-as-large-as-gdp-of-pakistan-india-tells-imran-khan-after-he-offers-help-305154">Also read|&nbsp;Our stimulus package is as large as GDP of Pakistan: India tells Imran Khan after he offers 'help'</a>

While this allegation was made on fund allocation and the overpowering army, he also accused the Prime Minister Imran Khan of hiding the actual figures of debt.&nbsp;"Pakistan's debt is equal to 88 per cent of its Gross Domestic Product. The total budget is of Rs 7,294.90 billion. They have also projected a deficit of Rs 3,500 billion but I feel they are trying to conceal the real numbers. The total deficit would be around Rs 4,500 billion and this could even go up to Rs 5,000 billion," he said.

Adding on, he said, "They might have said that this budget is for 2020-21 but I fell that they would have to come up with a rolling budget after three months. The crisis is so deep that they will have to reassess their budget every three months and will be forced to come up with a new budget."&nbsp;

He also accused the Pakistan government of handing over the area&nbsp;Gilgit Baltistan to China, as the country has not been allocating funds for the said area.

&nbsp;"I was expecting a separate allocation for the Bhasha dam but they didn't make an announcement regarding that and instead, they have made a general allocation of Rs 70 billion for the water projects. This could lead to a very dangerous situation as the dam in which China already has 70% will go under their control completely."&nbsp;

A rights activist from Pakistan-occupied Kashmir (PoK) has blamed the Pakistan army for Pakistan's negative economic growth. Dr Amjad Ayub Mirza blamed Pakistan army and its fear among the people in power.

A rights activist from Pakistan-occupied Kashmir (PoK) has blamed the Pakistan army for Pakistan's negative economic growth. Dr Amjad Ayub Mirza blamed Pakistan army and its fear among the people in power. Talking about the budget, he expressed his concern about the power the Pakistan army holds on the approving the country's budget. "This budget has Rs 650 Billion allocated for the development purpose, while the military has been allocated a sum of Rs 1.3 Trillion. This simply means that the budget has been presented after the approval of the army," said Mirza. Also read: Pakistan's Shahid Afridi tests positive for COVID-19 "Hammad Azhar, the minister who presented the budget expressed his government's gratitude to the army on the floor of the house. This simply means that this government is powerless and scared of the army," he continued. He alleged the ministers of spending more than what the country could afford. He claims the legislators have been spending money on luxurious things, instead of spending it on the people of several areas that haven;t received proper funding for years. "This is the first time in the history in Pakistan that the budget is showing negative growth. It`s -0.4 per cent this time. This is a dangerous situation because it requires a lot of things to be done to convert a negative growth into positive. First and foremost, you need to stop your expenses that do not yield dividends." Also read| Our stimulus package is as large as GDP of Pakistan: India tells Imran Khan after he offers 'help' While this allegation was made on fund allocation and the overpowering army, he also accused the Prime Minister Imran Khan of hiding the actual figures of debt. "Pakistan's debt is equal to 88 per cent of its Gross Domestic Product. The total budget is of Rs 7,294.90 billion. They have also projected a deficit of Rs 3,500 billion but I feel they are trying to conceal the real numbers. The total deficit would be around Rs 4,500 billion and this could even go up to Rs 5,000 billion," he said. Adding on, he said, "They might have said that this budget is for 2020-21 but I fell that they would have to come up with a rolling budget after three months. The crisis is so deep that they will have to reassess their budget every three months and will be forced to come up with a new budget." He also accused the Pakistan government of handing over the area Gilgit Baltistan to China, as the country has not been allocating funds for the said area. "I was expecting a separate allocation for the Bhasha dam but they didn't make an announcement regarding that and instead, they have made a general allocation of Rs 70 billion for the water projects. This could lead to a very dangerous situation as the dam in which China already has 70% will go under their control completely."

PoK rights activist blames Pak army for first ever negative economic growth

economic-crisis

Economic Crisis, News on Economic Crisis, stories on Economic Crisis, articles on Economic Crisis, Economic Crisis stories at Wion, Economic Crisis news, Economic Crisis latest news