British Prime Minister Boris Johnson has urged people to go back to work if they can. UK government said that it is now safe to return to work. Govt. asked people to help the economy recovery.

UK: Johnson urges people to return to work to help the economy recover

The central bank will tolerate an inflation rate that exceeds its 2% target for an extended period before raising interest rates.

Federal reserve is taking a new approach to inflation

United Airlines is preparing for the biggest pilot furloughs of its history after announcing on Thursday the need to cut 2,850 pilot jobs.

United Airlines announces biggest pilot job cut in its history

South Korea's central bank slashed its growth forecast Thursday, predicting the world's 12th-largest economy will contract 1.3 percent this year

South Korea Central bank cuts 2020 GDP outlook

Brazil's economy likely cratered 9.4% under the impact of the coronavirus outbreak in the country during the second quarter,

Brazil's GDP Probably Crumbled 9.4% in Second Quarter

Spot gold briefly touched a record high of $2000 an ounce on Tuesday amid a rally for the commodity

Gold tops $2000 for the first time in history of U.S | U.S Markets | Yellow Metal | WION

Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive.

The Nifty, which clocked a 7.5 per cent gain last month, fell 0.64 per cent to 11,002.65 by 0355 GMT, while the Sensex was 0.73 per cent lower at 37,335.25.

The Nifty banking index fell 1.31 per cent. The nation`s top private sector lender, HDFC Bank Ltd, was the biggest drag on the Nifty 50, with a 1.6 per cent decline.

<a href="https://www.wionews.com/business-economy/sensex-slips-129-points-nifty-ends-at-11073-317286">Also read: Sensex slips 129 points, Nifty ends at 11,073</a>

India`s tally of COVID-19 cases crossed 1.75 million on Sunday, after logging a record surge a day earlier, with the death toll at 37,364. The country has the world`s third highest caseload after the United States and Brazil.

Home Minister Amit Shah, a close aide to Prime Minister Narendra Modi, tested positive for COVID-19 on Sunday, becoming the senior-most politician in the country to catch the virus.

The chief minister of Karnataka, home to the tech hub of Bengaluru, also said he tested positive for COVID-19. 
Other Asian share markets were mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan.

Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive.

Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive. The Nifty, which clocked a 7.5 per cent gain last month, fell 0.64 per cent to 11,002.65 by 0355 GMT, while the Sensex was 0.73 per cent lower at 37,335.25. The Nifty banking index fell 1.31 per cent. The nation`s top private sector lender, HDFC Bank Ltd, was the biggest drag on the Nifty 50, with a 1.6 per cent decline. Also read: Sensex slips 129 points, Nifty ends at 11,073 India`s tally of COVID-19 cases crossed 1.75 million on Sunday, after logging a record surge a day earlier, with the death toll at 37,364. The country has the world`s third highest caseload after the United States and Brazil. Home Minister Amit Shah, a close aide to Prime Minister Narendra Modi, tested positive for COVID-19 on Sunday, becoming the senior-most politician in the country to catch the virus. The chief minister of Karnataka, home to the tech hub of Bengaluru, also said he tested positive for COVID-19. Other Asian share markets were mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan.

Sensex, Nifty fall as virus cases surge; banks slip

Indian two-wheeler majors Hero Moto and Bajaj Auto plan to sharply expand two-wheeler production in India. Watch this video to know more.

WION Dispatch: Indian two-wheeler majors Hero Moto, Bajaj Auto plan expansion

A small village of the Miao ethnic group in central China's Hunan Province has shaken off poverty and achieved rapid development in recent years, attracting many youths to come back and start businesses in their hometown.

Miao village out of poverty attracts youths back to start business in hometown

Attracting Businesses to India&nbsp;

If we have to put India’s markets and industry back in place, we will need strong investment from outside the country. The trust that people had in certain economies has been seriously eroded, and over 300 top companies in the world are looking for a new home, if not fully, at least partially. This is a great opportunity and India is eminently positioned to take advantage of this. This will need a very determined effort from the industry lobby, the businesses, and of course the government. How efficiently we do it and how hungrily we grab this will determine its success.&nbsp;&nbsp;

Tapping into our DNA of Innovation&nbsp;

Indians have always been patting our own backs, saying we are a very innovative society. This is the time to show how innovative we really are. There is no magic wand for the challenge that we are facing. All of us have to rethink the fundamentals of what we are doing. We must be ready to make enormous innovation. We must be willing to come down to the ground from whatever comfortable towers we are sitting on, and reinvent a lot of things. Unfortunately, over the last few decades, we have been left out of the economic development in the world, including Asia. We have to level that in the next three to five years.&nbsp;

Reviving Rural India&nbsp;

Statistics say that around 72 per cent of the world's investment is just in some thirty-odd cities in the world. It is quite natural for people from other areas to migrate there. In India, it was estimated that 220 million people will move from rural to urban India. You can imagine the plight of the cities if this happens. If we do not focus on spreading industry across the seven-hundred and odd districts in the country, migration will become too difficult to manage. The only way you can spread it is by taking it to rural India in some way. I understand that it is much more difficult because to get talent and train people in rural India takes much more. But if you do this now, the economy will be far more resilient. If ten years later another virus or something else comes our way, we will be able to sail through those things much better. &nbsp;

Business Opportunities in Agriculture&nbsp;

Right now, India is the only nation in the world where 60 per cent&nbsp;of the population still knows how to perform this magic of transforming mud into food. We are capable of growing food twelve months of the year, and we have the soil types, climatic conditions and latitudinal spread to grow almost any crop in the world. In the next five to ten years, if we do the right things, we can establish India as the breadbasket of the world. We need to focus on rural India. That is where the people are, that is where the land is and that is where India's wealth is.&nbsp;

Rethinking Education&nbsp;

Everyone does not have an academic mindset. They do not have to go to university. They have to learn other skills, innovations and a variety of disciplines. The industry needs skills. They can make a slightly long-term investment and train tenth standard children for their industry’s requirements. A certain amount of disruption will be there, but we must be willing to go through that. Only then will we unleash the potential of our youthful population. &nbsp;

We must set up a structure that by the time you are eighteen, either you must be going to a university or you must have some livelihood skills. If you do not have both, you must be conscripted into either the military or paramilitary or a one-year residential skill development institution. They must go through the discipline of becoming physically fit, mentally fit and disciplined enough to learn a skill and execute it. You will develop an enormous amount of skill in the country with this. &nbsp;

Turning Waste into Wealth&nbsp;

Right now for many polluting industries, there is a law in the country that they must set up their own treatment plants. That has been our biggest mistake because such treatment plants will only work on the inspection day! It is most important that a treatment industry grows in such a way that your effluent is my business and my raw material. Then I will make sure my raw material is always flowing and my business is to treat it. You can make the treatment industry very lucrative. &nbsp;

For domestic waste, as there is a charge for how much water or electricity you use, there must also be a charge for how much sewage you discharge. Today, there are many technologies to transform filth into wealth. If there is an economic value to it, people will not let it go waste. &nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

Attracting Businesses to India If we have to put India’s markets and industry back in place, we will need strong investment from outside the country. The trust that people had in certain economies has been seriously eroded, and over 300 top companies in the world are looking for a new home, if not fully, at least partially.

Attracting Businesses to India If we have to put India’s markets and industry back in place, we will need strong investment from outside the country. The trust that people had in certain economies has been seriously eroded, and over 300 top companies in the world are looking for a new home, if not fully, at least partially. This is a great opportunity and India is eminently positioned to take advantage of this. This will need a very determined effort from the industry lobby, the businesses, and of course the government. How efficiently we do it and how hungrily we grab this will determine its success. Tapping into our DNA of Innovation Indians have always been patting our own backs, saying we are a very innovative society. This is the time to show how innovative we really are. There is no magic wand for the challenge that we are facing. All of us have to rethink the fundamentals of what we are doing. We must be ready to make enormous innovation. We must be willing to come down to the ground from whatever comfortable towers we are sitting on, and reinvent a lot of things. Unfortunately, over the last few decades, we have been left out of the economic development in the world, including Asia. We have to level that in the next three to five years. Reviving Rural India Statistics say that around 72 per cent of the world's investment is just in some thirty-odd cities in the world. It is quite natural for people from other areas to migrate there. In India, it was estimated that 220 million people will move from rural to urban India. You can imagine the plight of the cities if this happens. If we do not focus on spreading industry across the seven-hundred and odd districts in the country, migration will become too difficult to manage. The only way you can spread it is by taking it to rural India in some way. I understand that it is much more difficult because to get talent and train people in rural India takes much more. But if you do this now, the economy will be far more resilient. If ten years later another virus or something else comes our way, we will be able to sail through those things much better.  Business Opportunities in Agriculture Right now, India is the only nation in the world where 60 per cent of the population still knows how to perform this magic of transforming mud into food. We are capable of growing food twelve months of the year, and we have the soil types, climatic conditions and latitudinal spread to grow almost any crop in the world. In the next five to ten years, if we do the right things, we can establish India as the breadbasket of the world. We need to focus on rural India. That is where the people are, that is where the land is and that is where India's wealth is. Rethinking Education Everyone does not have an academic mindset. They do not have to go to university. They have to learn other skills, innovations and a variety of disciplines. The industry needs skills. They can make a slightly long-term investment and train tenth standard children for their industry’s requirements. A certain amount of disruption will be there, but we must be willing to go through that. Only then will we unleash the potential of our youthful population.  We must set up a structure that by the time you are eighteen, either you must be going to a university or you must have some livelihood skills. If you do not have both, you must be conscripted into either the military or paramilitary or a one-year residential skill development institution. They must go through the discipline of becoming physically fit, mentally fit and disciplined enough to learn a skill and execute it. You will develop an enormous amount of skill in the country with this. Turning Waste into Wealth Right now for many polluting industries, there is a law in the country that they must set up their own treatment plants. That has been our biggest mistake because such treatment plants will only work on the inspection day! It is most important that a treatment industry grows in such a way that your effluent is my business and my raw material. Then I will make sure my raw material is always flowing and my business is to treat it. You can make the treatment industry very lucrative.  For domestic waste, as there is a charge for how much water or electricity you use, there must also be a charge for how much sewage you discharge. Today, there are many technologies to transform filth into wealth. If there is an economic value to it, people will not let it go waste. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Innovative ideas to revive the Indian economy

Global banks face combined loan losses of $2.1 trillion by the end of 2021 as a result of the coronavirus crisis, credit ratings agency S&P Global estimates, with a hit of $1.3 trillion this year more than doubling the 2019 level.

COVID-19 to cost global banks $2.1 trillion by the end of 2021

After months&nbsp;of&nbsp;lockdown, the UK economy has reopened and the locals are hoping that the British government will be able to bring the country out of the stagnancy and the downward spiral of the economy.

British Finance Minister Rishi Sunak is urging people to 'eat out to help out'. He feels this will help the economy by generating revenue and more jobs.

To encourage people to dine out, the British government has announced a new dining discount plan that will give people a 50 per cent discount at participating restaurants, cafes and pubs between Monday and Wednesday up to a maximum £10 per person in the month of August.

<a href="https://www.wionews.com/world/united-kingdom-lodges-more-cases-of-child-sexual-abuse-during-lockdown-311679">Also read:&nbsp;United Kingdom lodges more cases of child sexual abuse during lockdown</a>

In addition to this, Sunak has assured people that he will do everything he can to bring the economy out of the downward spiral by October.&nbsp;

The UK has not seen a sharp increase in the unemployment rate, when compared to other countries. The main reason behind this has been the British government's 'Job Retention Scheme', whereby the government has been paying the majority of the salaries of workers who were not fired.

<a href="https://www.wionews.com/videos/uk-car-sales-post-smaller-slump-in-june-311280">Also watch:&nbsp;UK car sales post smaller slump in June</a>

As per the reports, nearly 1.1 million employers have taken advantage of the program, which has costed the government nearly £27.4 billion ($35 billion).

Now the British government will be&nbsp;introducing a new program under which the government will pay the companies&nbsp;£1,000 bonus for hiring back each employee who was furloughed. This can cost the government an additional&nbsp;£9.4 billion.

The government is hoping to protect as well as generate as many jobs as possible&nbsp;during the recession. "People need to know that although hardship lies ahead, no-one will be left without hope," he told the lawmakers.

"Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before," he said. "The longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities."&nbsp;

Sunak is hoping these programs and discounts will help the UK economy out of recession, after it shrank 25 per cent. Many economists think unemployment could more than double to over 3 million this year, to levels last seen in the 1980s.

(With inputs from agencies)

After months of lockdown, the UK economy has reopened and the locals are hoping that the British government will be able to bring the country out of the stagnancy and the downward spiral of the economy.

After months of lockdown, the UK economy has reopened and the locals are hoping that the British government will be able to bring the country out of the stagnancy and the downward spiral of the economy. British Finance Minister Rishi Sunak is urging people to 'eat out to help out'. He feels this will help the economy by generating revenue and more jobs. To encourage people to dine out, the British government has announced a new dining discount plan that will give people a 50 per cent discount at participating restaurants, cafes and pubs between Monday and Wednesday up to a maximum £10 per person in the month of August. Also read: United Kingdom lodges more cases of child sexual abuse during lockdown In addition to this, Sunak has assured people that he will do everything he can to bring the economy out of the downward spiral by October. The UK has not seen a sharp increase in the unemployment rate, when compared to other countries. The main reason behind this has been the British government's 'Job Retention Scheme', whereby the government has been paying the majority of the salaries of workers who were not fired. Also watch: UK car sales post smaller slump in June As per the reports, nearly 1.1 million employers have taken advantage of the program, which has costed the government nearly £27.4 billion ($35 billion). Now the British government will be introducing a new program under which the government will pay the companies £1,000 bonus for hiring back each employee who was furloughed. This can cost the government an additional £9.4 billion. The government is hoping to protect as well as generate as many jobs as possible during the recession. "People need to know that although hardship lies ahead, no-one will be left without hope," he told the lawmakers. "Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before," he said. "The longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities." Sunak is hoping these programs and discounts will help the UK economy out of recession, after it shrank 25 per cent. Many economists think unemployment could more than double to over 3 million this year, to levels last seen in the 1980s. (With inputs from agencies)

Take-away and 'job retention scheme' to save the UK economy

US President Donald Trump at a press briefing celebrated a government report showing the country gained 4.8 million jobs and the unemployment rate dropped to 11.1% last month, when states began allowing businesses to reopen from strict shutdowns aimed at containing the coronavirus pandemic.

Trump: Jobs report proves US economy 'roaring back'

German payment group Wirecard recently admitted that 1.9 billion Euros ($2.13 billion) earlier counted in foreign accounts is now unaccounted for, implying that “it was never there”. The auditor had refused to sign off 2019 accounts because of the missing amount.

After this, the group’s earlier financial statements were withdrawn.

Responding to this mishap, a German financial watchdog Bafin called the incident a “total disaster”.

"It is a scandal that something like this could happen", said Bafin president Felix Hufeld at a conference in Frankfurt.

The company Wirecard AG on Friday claimed to have a victim of "fraud of considerable proportions”.

On Thursday, the company shares had dropped by over 60 per cent. The company fears it will require loans to compensate for the mishap.

There was evidence of "spurious balance confirmations", said auditor EY, which was also unable to find the missing amount in trust accounts.

"At present it cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions," Wirecard Chief Executive Markus Braun said in a statement on Friday.

"It is currently unclear why the two banks have stated to the auditor that the confirmations are spurious. The trustee has announced to Wirecard AG that he will clarify the facts of the matter with the two banks managing the trust accounts at short notice," Braun said.

German payment group Wirecard recently admitted that 1.9 billion Euros ($2.13 billion) earlier counted in foreign accounts is now unaccounted for, implying that “it was never there”.

German payment group Wirecard recently admitted that 1.9 billion Euros ($2.13 billion) earlier counted in foreign accounts is now unaccounted for, implying that “it was never there”. The auditor had refused to sign off 2019 accounts because of the missing amount. After this, the group’s earlier financial statements were withdrawn. Responding to this mishap, a German financial watchdog Bafin called the incident a “total disaster”. "It is a scandal that something like this could happen", said Bafin president Felix Hufeld at a conference in Frankfurt. The company Wirecard AG on Friday claimed to have a victim of "fraud of considerable proportions”. On Thursday, the company shares had dropped by over 60 per cent. The company fears it will require loans to compensate for the mishap. There was evidence of "spurious balance confirmations", said auditor EY, which was also unable to find the missing amount in trust accounts. "At present it cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions," Wirecard Chief Executive Markus Braun said in a statement on Friday. "It is currently unclear why the two banks have stated to the auditor that the confirmations are spurious. The trustee has announced to Wirecard AG that he will clarify the facts of the matter with the two banks managing the trust accounts at short notice," Braun said.

'Total disaster' after Germany's Wirecard claims $2.1b was 'never there'

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

For the first time in 68 years, Pakistan's economy is set to contract in the outgoing fiscal year with a negative 0.38 per cent due to the adverse impact of the coronavirus pandemic coupled with the already weak financial situation before the pandemic hit the country, according to the economic survey unveiled on Thursday.

Advisor on Finance Abdul Hafeez Sheikh, releasing the Pakistan Economic Survey 2019-20 said the economy suffered massively due to the coronavirus pandemic which has so far infected about 120,000 people in the country, and forced the government to impose lockdown in March for several weeks.

The pandemic has badly hit the economy in the current fiscal year ending on June 30.

<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>

For the first time in 68 years, Pakistan's economy has marginally contracted by 0.38 per cent in the outgoing fiscal year due to adverse impacts of novel coronavirus coupled with economic stabilisation policies that had hit the industrial sector much before the deadly pandemic.

Except for the agriculture sector that grew 2.7 per cent, the industrial and services sectors witnessed negative growth rates, pulling the overall growth rate down to negative 0.38 per cent in the fiscal year 2019-20, ending on June 30, the economic survey said.

The per capita income in dollar terms has also dipped to 1,366 - a contraction of 6.1 per cent, but it increased in rupee terms to Rs 214,539.

<a href="https://www.wionews.com/south-asia/cash-strapped-pakistan-wants-to-help-india-imran-offers-to-share-the-cash-transfer-programme-305114">Also read:&nbsp;Cash-strapped Pakistan wants to 'help' India, Imran offers to 'share the cash transfer programme'</a>

Sheikh said the International Monetary Fund (IMF) had warned about the dire impact of COVID-19 on the developing countries due to drop in exports and remittance.

"Exports fell due to a fall in global demand while remittance decreased due to layoffs of Pakistanis employed abroad," he said.

The overall tax collection grew by 10.8 per cent to Rs 3,300.6 billion during July-April 2020 against Rs 2,980 billion in the comparable period last year. The tax collection estimate for this period was Rs 4,510 billion.

He said the current account deficit was reduced by 73.1 per cent to USD 2.8 billion (1.1 per cent of GDP) against USD 10.3 billion last year which was 3.7 per cent of GDP.

"The current account deficit that we inherited was around USD 20 billion but we have reduced that to around USD 3 billion. This is a huge achievement of the government," he said.

He said the government controlled state expenses and did not borrow from the State Bank of Pakistan during the outgoing fiscal year.

"This was the first time, I think, in the country's history, and our primary balance -- meaning our expenses were less than our earnings --&nbsp;went into surplus," he said.

He said Rs 3,000 billion were set aside for payment of loans in the coming year while Rs 5,000 billion were given in the outgoing year. He promised more relief in the new budget and also reduced taxes and not imposed any new tax so that industry should be given relief and incentive to grow.

Minister for Economic Affairs Khusru Bakhtiar said that this government had USD 9 billion forex exchange reserve when it came to power in August 2018 and by the end of this year it would be more than USD 18 billion.

He said that the total external debt of Pakistan was USD 76.5 billion which was negatively impacting Pakistan.

He said the debt was USD 40 billion in 2013 and rose to USD 48 billion by 2013 during the tenure of Pakistan Peoples Party and again increased to USD 73 billion by 2018 in the five years of Pakistan Muslim League-Nawaz.

The economic survey is considered as the most authentic document of the government and is launched every year before the announcement of the budget of the next year.

The government has already announced that the budget for 2020-21 will be presented in parliament on June 12.

For the first time in 68 years, Pakistan's economy is set to contract in the outgoing fiscal year with a negative 0.38 per cent due to the adverse impact of the coronavirus pandemic coupled with the already weak financial situation before the pandemic hit the country, according to the economic survey unveiled on Thursday.

For the first time in 68 years, Pakistan's economy is set to contract in the outgoing fiscal year with a negative 0.38 per cent due to the adverse impact of the coronavirus pandemic coupled with the already weak financial situation before the pandemic hit the country, according to the economic survey unveiled on Thursday. Advisor on Finance Abdul Hafeez Sheikh, releasing the Pakistan Economic Survey 2019-20 said the economy suffered massively due to the coronavirus pandemic which has so far infected about 120,000 people in the country, and forced the government to impose lockdown in March for several weeks. The pandemic has badly hit the economy in the current fiscal year ending on June 30. Also read| Our stimulus package is as large as GDP of Pakistan: India tells Imran Khan after he offers 'help' For the first time in 68 years, Pakistan's economy has marginally contracted by 0.38 per cent in the outgoing fiscal year due to adverse impacts of novel coronavirus coupled with economic stabilisation policies that had hit the industrial sector much before the deadly pandemic. Except for the agriculture sector that grew 2.7 per cent, the industrial and services sectors witnessed negative growth rates, pulling the overall growth rate down to negative 0.38 per cent in the fiscal year 2019-20, ending on June 30, the economic survey said. The per capita income in dollar terms has also dipped to 1,366 - a contraction of 6.1 per cent, but it increased in rupee terms to Rs 214,539. Also read: Cash-strapped Pakistan wants to 'help' India, Imran offers to 'share the cash transfer programme' Sheikh said the International Monetary Fund (IMF) had warned about the dire impact of COVID-19 on the developing countries due to drop in exports and remittance. "Exports fell due to a fall in global demand while remittance decreased due to layoffs of Pakistanis employed abroad," he said. The overall tax collection grew by 10.8 per cent to Rs 3,300.6 billion during July-April 2020 against Rs 2,980 billion in the comparable period last year. The tax collection estimate for this period was Rs 4,510 billion. He said the current account deficit was reduced by 73.1 per cent to USD 2.8 billion (1.1 per cent of GDP) against USD 10.3 billion last year which was 3.7 per cent of GDP. "The current account deficit that we inherited was around USD 20 billion but we have reduced that to around USD 3 billion. This is a huge achievement of the government," he said. He said the government controlled state expenses and did not borrow from the State Bank of Pakistan during the outgoing fiscal year. "This was the first time, I think, in the country's history, and our primary balance -- meaning our expenses were less than our earnings -- went into surplus," he said. He said Rs 3,000 billion were set aside for payment of loans in the coming year while Rs 5,000 billion were given in the outgoing year. He promised more relief in the new budget and also reduced taxes and not imposed any new tax so that industry should be given relief and incentive to grow. Minister for Economic Affairs Khusru Bakhtiar said that this government had USD 9 billion forex exchange reserve when it came to power in August 2018 and by the end of this year it would be more than USD 18 billion. He said that the total external debt of Pakistan was USD 76.5 billion which was negatively impacting Pakistan. He said the debt was USD 40 billion in 2013 and rose to USD 48 billion by 2013 during the tenure of Pakistan Peoples Party and again increased to USD 73 billion by 2018 in the five years of Pakistan Muslim League-Nawaz. The economic survey is considered as the most authentic document of the government and is launched every year before the announcement of the budget of the next year. The government has already announced that the budget for 2020-21 will be presented in parliament on June 12.

Pakistan's economy contracts for first time in 68 years by -0.38 pc

Emirates laid off more pilots and cabin crew on Wednesday in a second day of redundancies at one of the world's biggest long-haul airlines, three company sources said.

An Emirates spokeswoman declined to comment beyond the airline's statement on Tuesday that said some employees had been laid off. No further details were provided.

The Dubai-based carrier laid off hundreds of pilots and cabin crew on Tuesday in a bid to stave off a cash crunch caused by the coronavirus pandemic, sources told Reuters.

More redundancies were expected this week, including both Airbus A380 and Boeing777 pilots, the sources said on Tuesday.

Those who lost their jobs were told their positions had been made redundant, the sources said.

Aviation is one of the industries worst hit by the fallout from the virus outbreak, with airlines around the world laying off staff and seeking government bailouts.

The state carrier had said in May a promise by the Dubai government to provide Emirates with new equity would allow it to "preserve its skilled workforce."

Emirates has since said it could take it up to four years to resume flights to all 157 destinations it flew to before the pandemic.

The airline has operated limited, mostly outbound services from the United Arab Emirates (UAE) since grounding passenger flights in March, but is due to restart some connecting flights this month after the UAE lifted a suspension.

Emirates Group, the state holding company that includes the airline, has also seen lay offs at its airport services company dnata.

Emirates laid off more pilots and cabin crew on Wednesday in a second day of redundancies at one of the world's biggest long-haul airlines, three company sources said.

Emirates laid off more pilots and cabin crew on Wednesday in a second day of redundancies at one of the world's biggest long-haul airlines, three company sources said. An Emirates spokeswoman declined to comment beyond the airline's statement on Tuesday that said some employees had been laid off. No further details were provided. The Dubai-based carrier laid off hundreds of pilots and cabin crew on Tuesday in a bid to stave off a cash crunch caused by the coronavirus pandemic, sources told Reuters. More redundancies were expected this week, including both Airbus A380 and Boeing777 pilots, the sources said on Tuesday. Those who lost their jobs were told their positions had been made redundant, the sources said. Aviation is one of the industries worst hit by the fallout from the virus outbreak, with airlines around the world laying off staff and seeking government bailouts. The state carrier had said in May a promise by the Dubai government to provide Emirates with new equity would allow it to "preserve its skilled workforce." Emirates has since said it could take it up to four years to resume flights to all 157 destinations it flew to before the pandemic. The airline has operated limited, mostly outbound services from the United Arab Emirates (UAE) since grounding passenger flights in March, but is due to restart some connecting flights this month after the UAE lifted a suspension. Emirates Group, the state holding company that includes the airline, has also seen lay offs at its airport services company dnata.

Emirates airline redundancies continue for second day: Sources

The outlook for Britain's coronavirus-blighted labour market is at its bleakest for almost 30 years despite the easing lockdown, a survey showed Tuesday. 
 
Employment consultancy ManpowerGroup revealed the outcome of a survey of 1,056 UK employers, which comes as Britain continues to relax its COVID-19 lockdown. 
 
"Hiring intentions for the third quarter of 2020 are down to minus 12 percent, with a sharp drop across all major sectors," ManpowerGroup said in a statement, noting this was the worst level since it began the survey in 1992.

Also read:&nbsp;<a href="https://www.wionews.com/world/emergency-health-measures-including-school-closures-saved-millions-in-six-coronavirus-hit-countries-study-304384" hreflang="en">Emergency health measures including school closures saved millions in six coronavirus-hit countries: Study</a> 
 
The so-called net employment outlook is calculated by subtracting the number of employers who want to cut staff from those wanting to hire staff. 
 
On a more optimistic note, ManpowerGroup added that most UK businesses expected to return to normality over the next twelve months. 
 
"Employers remain cautiously optimistic that this will be temporary with ... 57 percent of employers expecting to return to pre-COVID-19 hiring levels by this time next year." 
 
Mark Cahill, managing director of ManpowerGroup UK, noted the data showed "unprecedented" disruption from the disease, which has killed more than 40,000 in Britain. 
 
"While there's no getting away from the challenges that lie ahead, the data underlines the resilience of UK employers," Cahill said.

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He added: "The level of disruption is unprecedented and many will be looking closely at what happens next with how COVID-19 progresses, how consumers respond and what all this means for their own operations.” 
 
Recent official UK data also painted a dire picture of the current state of the labour market. 
 
The number of Britons claiming jobless benefit soared nearly 70 percent in April to 2.1 million. 
 
Unemployment claims surged by a record 856,000 from March, according to the Office for National Statistics.&nbsp; 
 
Britain imposed a lockdown on March 23 to halt the spread of the virus, and launched a furlough jobs retention scheme under which the state temporarily pays the bulk of wages.

The outlook for Britain's coronavirus-blighted labour market is at its bleakest for almost 30 years despite the easing lockdown, a survey showed Tuesday. Employment consultancy ManpowerGroup revealed the outcome of a survey of 1,056 UK employers, which comes as Britain continues to relax its COVID-19 lockdown.

The outlook for Britain's coronavirus-blighted labour market is at its bleakest for almost 30 years despite the easing lockdown, a survey showed Tuesday. Employment consultancy ManpowerGroup revealed the outcome of a survey of 1,056 UK employers, which comes as Britain continues to relax its COVID-19 lockdown. "Hiring intentions for the third quarter of 2020 are down to minus 12 percent, with a sharp drop across all major sectors," ManpowerGroup said in a statement, noting this was the worst level since it began the survey in 1992. Also read: Emergency health measures including school closures saved millions in six coronavirus-hit countries: Study The so-called net employment outlook is calculated by subtracting the number of employers who want to cut staff from those wanting to hire staff. On a more optimistic note, ManpowerGroup added that most UK businesses expected to return to normality over the next twelve months. "Employers remain cautiously optimistic that this will be temporary with ... 57 percent of employers expecting to return to pre-COVID-19 hiring levels by this time next year." Mark Cahill, managing director of ManpowerGroup UK, noted the data showed "unprecedented" disruption from the disease, which has killed more than 40,000 in Britain. "While there's no getting away from the challenges that lie ahead, the data underlines the resilience of UK employers," Cahill said. Also read: Was 'icon of the free world' Winston Churchill a racist? He added: "The level of disruption is unprecedented and many will be looking closely at what happens next with how COVID-19 progresses, how consumers respond and what all this means for their own operations.” Recent official UK data also painted a dire picture of the current state of the labour market. The number of Britons claiming jobless benefit soared nearly 70 percent in April to 2.1 million. Unemployment claims surged by a record 856,000 from March, according to the Office for National Statistics. Britain imposed a lockdown on March 23 to halt the spread of the virus, and launched a furlough jobs retention scheme under which the state temporarily pays the bulk of wages.

UK labour market outlook bleakest since 1992: Study

Kim Jong Un, the leader of North Korea has called on his country folk to become “self-sufficient” amid rising economic concerns due to the coronavirus pandemic.

During a meeting of the politburo, the leader talked about domestic economic issues.

North Korea had already been suffering economically due to the international sanctions against the country’s nuclear programmes. And the country is currently in a spat with its neighbour, South Korea, over the matter of defectors.

Also read:&nbsp;<a href="wionews.com/world/south-korea-to-stop-people-sending-cross-border-messages-after-threat-from-the-north-303270" hreflang="en">South Korea to stop people sending cross-border messages after threat from the North</a>

According to state news agency KCNA, the meeting discussed “crucial issues arising in further developing the self-sufficient economy of the country and improving the standard of people's living”. 
 
North Korea has amped up its criticism of South Korea lately, and has asked the neighbour to prohibit defector material from reaching the communist country. North Korea rejected a routine call from South Korea for the first time ever 2018, as per South Korea’s Unification Ministry.

<h6><img alt="This picture taken on June 7, 2020 and released from North Korea's official Korean Central News Agency (KCNA) on June 8, 2020 shows North Korean leader Kim Jong Un (C) attending the 13th Political Bureau meeting of the 7th Central Committee of the Workers' Party of Korea (WPK) in an undisclosed location in North Korea. " data-entity-type="file" data-entity-uuid="66ad27ff-de56-4424-aadf-e92d8bf51da4" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design-6_3.jpg" /> 
This picture taken on June 7, 2020 and released from North Korea's official Korean Central News Agency (KCNA) on June 8, 2020 shows North Korean leader Kim Jong Un (C) attending the 13th Political Bureau meeting of the 7th Central Committee of the Workers' Party of Korea (WPK) in an undisclosed location in North Korea. | AFP</h6>

Additionally, North Korea has threatened to pull out from collaborative projects.

South Korea reasserted commitment to maintaining preexisting inter-Korean agreements. The country is planning to penalise sending material to its Northern counterpart.

Reviving the economy was one of the major concerns in the meeting, with KCNA reporting referring to the chemical industry and fertiliser production as "a major thrust front of the national economy”.

Also read:&nbsp;<a href="/world/north-korea-threatens-to-halt-military-agreement-with-the-south-over-anti-kim-leaflets-303122" hreflang="en">North Korea threatens to halt military agreement with the South over anti-Kim leaflets</a>

Another focus of the meeting was constructing residential houses in a bid to improving the country’s living standard.

Last month, rumours of Kim’s death flooded social media. But these were disproved when he made an abrupt appearance. However, reports claimed that Kim faked his death to test the loyalty of his close aides.

As of now, the country has reported no confirmed cases of COVID-19, but many experts and analysts believe that the truth may be far from it.

(With inputs from Reuters and AFP)

Kim Jong Un, the leader of North Korea has called on his country folk to become “self-sufficient” amid rising economic concerns due to the coronavirus pandemic. During a meeting of the politburo, the leader talked about domestic economic issues.

Kim Jong Un, the leader of North Korea has called on his country folk to become “self-sufficient” amid rising economic concerns due to the coronavirus pandemic. During a meeting of the politburo, the leader talked about domestic economic issues. North Korea had already been suffering economically due to the international sanctions against the country’s nuclear programmes. And the country is currently in a spat with its neighbour, South Korea, over the matter of defectors. Also read: South Korea to stop people sending cross-border messages after threat from the North According to state news agency KCNA, the meeting discussed “crucial issues arising in further developing the self-sufficient economy of the country and improving the standard of people's living”. North Korea has amped up its criticism of South Korea lately, and has asked the neighbour to prohibit defector material from reaching the communist country. North Korea rejected a routine call from South Korea for the first time ever 2018, as per South Korea’s Unification Ministry. This picture taken on June 7, 2020 and released from North Korea's official Korean Central News Agency (KCNA) on June 8, 2020 shows North Korean leader Kim Jong Un (C) attending the 13th Political Bureau meeting of the 7th Central Committee of the Workers' Party of Korea (WPK) in an undisclosed location in North Korea. | AFP Additionally, North Korea has threatened to pull out from collaborative projects. South Korea reasserted commitment to maintaining preexisting inter-Korean agreements. The country is planning to penalise sending material to its Northern counterpart. Reviving the economy was one of the major concerns in the meeting, with KCNA reporting referring to the chemical industry and fertiliser production as "a major thrust front of the national economy”. Also read: North Korea threatens to halt military agreement with the South over anti-Kim leaflets Another focus of the meeting was constructing residential houses in a bid to improving the country’s living standard. Last month, rumours of Kim’s death flooded social media. But these were disproved when he made an abrupt appearance. However, reports claimed that Kim faked his death to test the loyalty of his close aides. As of now, the country has reported no confirmed cases of COVID-19, but many experts and analysts believe that the truth may be far from it. (With inputs from Reuters and AFP)

North Korea's Kim Jong Un calls for developing a 'self-sufficient economy'

India's economy will shrink by 3.2 per cent in the current fiscal, the World Bank said on Monday as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to the coronavirus lockdown halting economic activity.

The Washington-based multilateral lender said that the COVID-19 pandemic and the multi-phased lockdown imposed to curb its spread has resulted in a devastating blow to the Indian economy.

In its latest edition of the Global Economic Prospect, the World Bank downgraded its projection of India by a massive negative nine per cent.

However, the Indian economy is expected to bounce back in 2021, the World Bank said.

"In India, growth is estimated to have slowed to 4.2 per cent in the fiscal year 2019/20 (the year ending in March-2020) and output is projected to contract by 3.2 per cent in fiscal year 2020/21 when the impact of COVID-19 will largely materialise.

"Stringent measures to restrict the spread of the virus, which heavily curtail short-term activity, will contribute to the contraction," it said in the Global Economic Prospect report.

International rating agencies like Moody's Investors Service, Fitch Rating and S&amp;P Global Ratings have all predicted a 4-5 per cent contraction in India's economic growth rate from April 2020 to March 2021 fiscal. Crisil has said this would be the country's fourth recession since Independence, first since liberalisation, and perhaps the worst to date.

The World Bank said spillovers from the weaker global growth and balance sheet stress in the financial sector will also weigh on activity, despite some support from the fiscal stimulus and continued monetary policy easing.

According to the report, the central bank has been purchasing government bonds to further ease the financial conditions. The Indian government has also increased its spending on healthcare to bolster the COVID-19 response, wage support, in-kind and cash transfers to lower-income households, deferral of tax payments, as well as loan and liquidity support for small businesses and financial institutions.

The growth rate of the Indian economy in fiscal 2017 was seven per cent, which dropped to 6.1 per cent in fiscal 2018 and to 4.2 per cent in fiscal 2020, it said.

The real impact of the COVID-19 and lockdown would be felt in the current fiscal (2020-21) beginning April, the bank said as it forecast a negative growth rate of 3.2 per cent.

The World Bank revised its January projection on India by a massive negative nine per cent for the year 2020 and minus three per cent for the year 2021.

The contraction in the Indian economy will have a spillover impact in South Asia, according to the bank's projections.

Growth in the region is projected to register a contraction of -2.7 per cent in 2020 and is marked by high uncertainty, the report said. 
Across the region, the pandemic mitigation measures will severely hinder consumption and services activity, while high uncertainty about the pandemic will constrain private investment.

India's economy will shrink by 3.2 per cent in the current fiscal, the World Bank said on Monday as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to the coronavirus lockdown halting economic activity.

India's economy will shrink by 3.2 per cent in the current fiscal, the World Bank said on Monday as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to the coronavirus lockdown halting economic activity. The Washington-based multilateral lender said that the COVID-19 pandemic and the multi-phased lockdown imposed to curb its spread has resulted in a devastating blow to the Indian economy. In its latest edition of the Global Economic Prospect, the World Bank downgraded its projection of India by a massive negative nine per cent. However, the Indian economy is expected to bounce back in 2021, the World Bank said. "In India, growth is estimated to have slowed to 4.2 per cent in the fiscal year 2019/20 (the year ending in March-2020) and output is projected to contract by 3.2 per cent in fiscal year 2020/21 when the impact of COVID-19 will largely materialise. "Stringent measures to restrict the spread of the virus, which heavily curtail short-term activity, will contribute to the contraction," it said in the Global Economic Prospect report. International rating agencies like Moody's Investors Service, Fitch Rating and S&P Global Ratings have all predicted a 4-5 per cent contraction in India's economic growth rate from April 2020 to March 2021 fiscal. Crisil has said this would be the country's fourth recession since Independence, first since liberalisation, and perhaps the worst to date. The World Bank said spillovers from the weaker global growth and balance sheet stress in the financial sector will also weigh on activity, despite some support from the fiscal stimulus and continued monetary policy easing. According to the report, the central bank has been purchasing government bonds to further ease the financial conditions. The Indian government has also increased its spending on healthcare to bolster the COVID-19 response, wage support, in-kind and cash transfers to lower-income households, deferral of tax payments, as well as loan and liquidity support for small businesses and financial institutions. The growth rate of the Indian economy in fiscal 2017 was seven per cent, which dropped to 6.1 per cent in fiscal 2018 and to 4.2 per cent in fiscal 2020, it said. The real impact of the COVID-19 and lockdown would be felt in the current fiscal (2020-21) beginning April, the bank said as it forecast a negative growth rate of 3.2 per cent. The World Bank revised its January projection on India by a massive negative nine per cent for the year 2020 and minus three per cent for the year 2021. The contraction in the Indian economy will have a spillover impact in South Asia, according to the bank's projections. Growth in the region is projected to register a contraction of -2.7 per cent in 2020 and is marked by high uncertainty, the report said. Across the region, the pandemic mitigation measures will severely hinder consumption and services activity, while high uncertainty about the pandemic will constrain private investment.

India's economy to contract by 3.2% in 2020-21: World Bank

Japan should focus on back-stopping struggling businesses rather than trying to spark overall demand in fighting the coronavirus pandemic, its economy minister said, suggesting the central bank should avoid pushing interest rates deeper into negative territory.

The remark by Yasutoshi Nishimura, made in an exclusive interview with Reuters, underscores the challenge Tokyo faces in supporting an economy bracing for its worst postwar slump, while preventing a renewed spike in infections.

"What's most important now is to protect jobs and help businesses survive the pandemic," Nishimura said in the interview conducted on Saturday.

"We're not at a stage yet where we want to stimulate consumption and encourage people to travel a lot. Efforts to stimulate consumption should wait a bit more," he said.

Nishimura made the comments when asked whether the Bank of Japan should consider measures to stimulate demand, such as deepening negative interest rates.

Japan's approach contrasts with that of Western countries that are already shifting from crisis-response to policies aimed at propping up growth.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="http://wionews.com/videos/japans-house-hold-spending-falls-record-fall-registered-in-april-303525/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Under Nishimura's initiative, the government compiled two spending packages worth a combined $2.2 trillion to cushion the economic blow from the pandemic.

The BOJ joined in by easing monetary policy for two straight months in April, focusing on steps to ease corporate funding strains.

On whether the BOJ should join government efforts to inject capital into ailing companies, Nishimura said: "This is an area the government can handle. We hope the BOJ plays its part in helping financial institutions meet corporate funding strains."

Japan slipped into recession this year and is expected to suffer an annualised 20% contraction in the current quarter, as the government's decision to declare a state of emergency in April forced citizens to stay home and businesses to close.

Revised data released earlier on Monday showed the economy contracted less than initial estimates suggested, though the outlook remained grim due to depressed demand at home and abroad.

Indeed, while the government lifted nationwide lockdown steps last month, many analysts expect any rebound in growth to be modest.

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"We're already reopening business, so the economy will probably hit bottom from April through mid-May," Nishimura said, voicing hope that domestic demand could pick up soon if Japan can avert a big second wave of infections.

But he warned the outlook for external demand was more uncertain as some regions in the world were still seeing infection numbers surge.

"We need to take timely, flexible action" if a global surge in infection hits Japan's export-reliant economy, Nishimura said. "That means we shouldn't be thinking about fiscal reform now. Tax cuts aren't something I'm thinking about now."

Under a policy dubbed yield curve control, the BOJ guides short-term rates at -0.1% and caps long-term borrowing costs around zero. It also buys massive amounts of assets to pump money into the economy.

Japan should focus on back-stopping struggling businesses rather than trying to spark overall demand in fighting the coronavirus pandemic, its economy minister said, suggesting the central bank should avoid pushing interest rates deeper into negative territory.

Japan should focus on back-stopping struggling businesses rather than trying to spark overall demand in fighting the coronavirus pandemic, its economy minister said, suggesting the central bank should avoid pushing interest rates deeper into negative territory. The remark by Yasutoshi Nishimura, made in an exclusive interview with Reuters, underscores the challenge Tokyo faces in supporting an economy bracing for its worst postwar slump, while preventing a renewed spike in infections. "What's most important now is to protect jobs and help businesses survive the pandemic," Nishimura said in the interview conducted on Saturday. "We're not at a stage yet where we want to stimulate consumption and encourage people to travel a lot. Efforts to stimulate consumption should wait a bit more," he said. Nishimura made the comments when asked whether the Bank of Japan should consider measures to stimulate demand, such as deepening negative interest rates. Japan's approach contrasts with that of Western countries that are already shifting from crisis-response to policies aimed at propping up growth. Under Nishimura's initiative, the government compiled two spending packages worth a combined $2.2 trillion to cushion the economic blow from the pandemic. The BOJ joined in by easing monetary policy for two straight months in April, focusing on steps to ease corporate funding strains. On whether the BOJ should join government efforts to inject capital into ailing companies, Nishimura said: "This is an area the government can handle. We hope the BOJ plays its part in helping financial institutions meet corporate funding strains." Japan slipped into recession this year and is expected to suffer an annualised 20% contraction in the current quarter, as the government's decision to declare a state of emergency in April forced citizens to stay home and businesses to close. Revised data released earlier on Monday showed the economy contracted less than initial estimates suggested, though the outlook remained grim due to depressed demand at home and abroad. Indeed, while the government lifted nationwide lockdown steps last month, many analysts expect any rebound in growth to be modest. Also read: Japan approves saliva-based tests for safer, simpler detection of COVID-19 "We're already reopening business, so the economy will probably hit bottom from April through mid-May," Nishimura said, voicing hope that domestic demand could pick up soon if Japan can avert a big second wave of infections. But he warned the outlook for external demand was more uncertain as some regions in the world were still seeing infection numbers surge. "We need to take timely, flexible action" if a global surge in infection hits Japan's export-reliant economy, Nishimura said. "That means we shouldn't be thinking about fiscal reform now. Tax cuts aren't something I'm thinking about now." Under a policy dubbed yield curve control, the BOJ guides short-term rates at -0.1% and caps long-term borrowing costs around zero. It also buys massive amounts of assets to pump money into the economy.

Japan's economy minister warns against deepening negative rates

Pakistan witnessed the highest inflation in the world in the fiscal year 2020 with the country recording a 12-year high at 14.6 per cent in the month of January, forcing policy makers to increase interest rate, the country's central bank said on Sunday.

According to the Inflation Monitor for April issued by the State Bank of Pakistan (SBP), the country witnessed highest inflation not only in comparison with the developed economies but also with emerging economies, the Dawn News reported.

<a href="https://www.wionews.com/pakistan/imf-asks-pakistan-to-freeze-government-employees-salaries-to-cut-public-debt-303583">Also read:&nbsp;IMF asks Pakistan to freeze government employees' salaries to cut public debt</a>

The SBP pushed up interest rates to cool down the inflationary pressure during the fiscal year but high rates proved counterproductive as they further increased inflation while the private sector stopped borrowing costly money hampering industrial growth and services.

The month of January witnessed a 12-year high inflation at 14.6 per cent. In response to the rising prices, the SBP rose the interest rates to 13.25 per cent.

However, due to the coronavirus pandemic, the entire economic scenario was turned upside down as demand contraction lowered inflation, forcing the SBP to cut down interest rates to 5.25 per cent within just three months, the daily reported.

<a href="https://www.wionews.com/south-asia/world-bank-to-provide-188-million-to-pakistan-to-address-environmental-degradation-climate-change-302602">Also read:&nbsp;World Bank to provide $188 million to Pakistan to address environmental degradation, climate change&nbsp;</a>

The rate cut announcement came as inflation slowed down, falling to 8.2 per cent in May, much lower than the SBP projections for the month.

Detailed graphs accompanying the SBP's Inflation Monitor show Pakistan's inflation, when compared to developing economies like China, Thailand, India, Bangladesh and Sri Lanka, has fallen since the pandemic.

The July-May inflation for the current fiscal year slipped below to the State Bank's earlier projection of 11 per cent to 10.94 per cent. The number is expected to drop further in June.

The government has slashed petroleum prices thrice during the two months, which drastically reduced the cost of production, transportation and finally reduced inflation.

Trade and industrial sectors, while demanding cuts to interest rate, also believe the economy needs additional injection of Rs 3-4 trillion for full recovery.

However, with sharp economic slowdown, the revenue collection has also fallen short of target this year, making further liquidity injection on such a large scale impossible for the government.

The SBP has provided relief amounting to hundreds of billions in the form of principal payments deferrals, debts rescheduling and lending on easier terms for the industrial sector to avoid massive layoffs, according to the paper.

Pakistan witnessed the highest inflation in the world in the fiscal year 2020 with the country recording a 12-year high at 14.6 per cent in the month of January, forcing policy makers to increase interest rate, the country's central bank said on Sunday.

Pakistan witnessed the highest inflation in the world in the fiscal year 2020 with the country recording a 12-year high at 14.6 per cent in the month of January, forcing policy makers to increase interest rate, the country's central bank said on Sunday. According to the Inflation Monitor for April issued by the State Bank of Pakistan (SBP), the country witnessed highest inflation not only in comparison with the developed economies but also with emerging economies, the Dawn News reported. Also read: IMF asks Pakistan to freeze government employees' salaries to cut public debt The SBP pushed up interest rates to cool down the inflationary pressure during the fiscal year but high rates proved counterproductive as they further increased inflation while the private sector stopped borrowing costly money hampering industrial growth and services. The month of January witnessed a 12-year high inflation at 14.6 per cent. In response to the rising prices, the SBP rose the interest rates to 13.25 per cent. However, due to the coronavirus pandemic, the entire economic scenario was turned upside down as demand contraction lowered inflation, forcing the SBP to cut down interest rates to 5.25 per cent within just three months, the daily reported. Also read: World Bank to provide $188 million to Pakistan to address environmental degradation, climate change The rate cut announcement came as inflation slowed down, falling to 8.2 per cent in May, much lower than the SBP projections for the month. Detailed graphs accompanying the SBP's Inflation Monitor show Pakistan's inflation, when compared to developing economies like China, Thailand, India, Bangladesh and Sri Lanka, has fallen since the pandemic. The July-May inflation for the current fiscal year slipped below to the State Bank's earlier projection of 11 per cent to 10.94 per cent. The number is expected to drop further in June. The government has slashed petroleum prices thrice during the two months, which drastically reduced the cost of production, transportation and finally reduced inflation. Trade and industrial sectors, while demanding cuts to interest rate, also believe the economy needs additional injection of Rs 3-4 trillion for full recovery. However, with sharp economic slowdown, the revenue collection has also fallen short of target this year, making further liquidity injection on such a large scale impossible for the government. The SBP has provided relief amounting to hundreds of billions in the form of principal payments deferrals, debts rescheduling and lending on easier terms for the industrial sector to avoid massive layoffs, according to the paper.

Pakistan sees highest inflation in the world during 2020: SBP

On Monday, the rating agency&nbsp;Moody's downgraded India's ratings from Baa2 to Baa3, citing that the coronavirus pandemic wasn't the primary factor playing into consideration.

The agency said that the period of slower growth could trigger problems for the policymaking institutions, with financial sector susceptible to increased debt and pressure.

Also read:&nbsp;<a href="/business-economy/india-may-see-0-gdp-growth-this-fiscal-year-says-moodys-report-297398" hreflang="en">India may see 0% GDP growth this fiscal year, says Moody's report</a>

"Measures to improve India's fiscal strength, which were at the heart of the government's policy framework a few years ago, have underwhelmed," the ratings agency claimed&nbsp;in a statement.

Even though coronavirus may be one of the factors, the agency asserted that the pandemic has magnified preexisting issues in the country's credit profile, news agency Reuters reported.

The agency further maintained its outlook on the country as "negative".

<h6><img alt="ii" data-entity-type="file" data-entity-uuid="19660b9b-3599-46a2-bec0-8bc0e2cb3a05" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design-6_1.jpg" /> 
Pedestrians walk past a mural in Mumbai | AFP 
&nbsp;</h6>

On May 8, analysts at Moody's claimed that the pandemic will impact the rate of growth, with the country set to witness 0 per cent growth in the ongoing fiscal year.

The ratings agency claimed it does not expect&nbsp;India to see any&nbsp;growth in financial year 2021.

The coronavirus&nbsp;spread in the country has&nbsp;"significantly reduced the prospects of a durable fiscal consolidation," Moody's&nbsp;said in a report.

Moody's Investors Service in November 2019 had&nbsp;cut India's ratings outlook to "negative" from "stable", citing increasing risks, and while claiming&nbsp;that growth in Asia's third-largest economy will remain lower than in the past.

(with inputs from Reuters and AFP)

On Monday, the rating agency Moody's downgraded India's ratings from Baa2 to Baa3, citing that the coronavirus pandemic wasn't the primary factor playing into consideration.

On Monday, the rating agency Moody's downgraded India's ratings from Baa2 to Baa3, citing that the coronavirus pandemic wasn't the primary factor playing into consideration. The agency said that the period of slower growth could trigger problems for the policymaking institutions, with financial sector susceptible to increased debt and pressure. Also read: India may see 0% GDP growth this fiscal year, says Moody's report "Measures to improve India's fiscal strength, which were at the heart of the government's policy framework a few years ago, have underwhelmed," the ratings agency claimed in a statement. Even though coronavirus may be one of the factors, the agency asserted that the pandemic has magnified preexisting issues in the country's credit profile, news agency Reuters reported. The agency further maintained its outlook on the country as "negative". Pedestrians walk past a mural in Mumbai | AFP On May 8, analysts at Moody's claimed that the pandemic will impact the rate of growth, with the country set to witness 0 per cent growth in the ongoing fiscal year. The ratings agency claimed it does not expect India to see any growth in financial year 2021. The coronavirus spread in the country has "significantly reduced the prospects of a durable fiscal consolidation," Moody's said in a report. Moody's Investors Service in November 2019 had cut India's ratings outlook to "negative" from "stable", citing increasing risks, and while claiming that growth in Asia's third-largest economy will remain lower than in the past. (with inputs from Reuters and AFP)

Moody's downgrades India's ratings, warns of stress in financial sector

As the novel coronavirus pandemic hit the world, a worldwide lockdown was initiated by majority of the affected 120 countries.&nbsp;

Although this lockdown, till certain limit, helped contain the spread of coronavirus, it had an adverse effect on the economies of the infected countries.

According to a recent report by researchers, at least 49 million people across the world are expected to plunge into extreme poverty as a direct result of the pandemic's economic destruction. People living on less than $1.90 per day will be categorized under the term extremely poor.

A lot of nations have been battling the economic crisis, which has also formed a tense environment in the political scenarios of the leading countries.

<a href="https://www.wionews.com/world/palestinians-easing-coronavirus-restrictions-in-west-bank-300961">Also read: Palestinians easing coronavirus restrictions in West Bank</a>

It has also been found out that, sadly, India is one of the leading countries in this study as the World Bank has estimated that around 12 million of its citizens will be pushed to the very margins this year. Daily wage workers -- hawkers, roadside vendors, workers employed in the construction industry --and those employed by small businesses have been the worst-affected groups.

"Much of the Indian government's efforts to mitigate poverty over the years could be negated in a matter of just a few months," said Ashwajit Singh, managing director of IPE Global, to a media organization. He also predicted that more people could die from hunger, than virus.

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A World Bank report recently concluded that India had been making significant progress and was close to losing its status as the country with the most poor citizens. However, the lockdown might reverse the gains and out India back in that category.

A report by Centre for Monitoring Indian Economy (CMIE) and the World Bank observed more than 80% of households had experienced a drop income, which was majorly due to the lockdown, and not because of coronavirus. These households, may not be able to recover or survive much longer without aid from the government, according to this report.

The economy was already at its slowest pace in over a decade, and the lockdown initiated due to the pandemic made things worse for the economy. This lockdown has pushed the economy to what may be its first full-year contraction in more than four decades.

According to data from&nbsp;Johns Hopkins University,&nbsp;India is Asia's virus hotspot with more than 151,000 infections.

As the novel coronavirus pandemic hit the world, a worldwide lockdown was initiated by majority of the affected 120 countries. Although this lockdown, till certain limit, helped contain the spread of coronavirus, it had an adverse effect on the economies of the infected countries.

As the novel coronavirus pandemic hit the world, a worldwide lockdown was initiated by majority of the affected 120 countries. Although this lockdown, till certain limit, helped contain the spread of coronavirus, it had an adverse effect on the economies of the infected countries. According to a recent report by researchers, at least 49 million people across the world are expected to plunge into extreme poverty as a direct result of the pandemic's economic destruction. People living on less than $1.90 per day will be categorized under the term extremely poor. A lot of nations have been battling the economic crisis, which has also formed a tense environment in the political scenarios of the leading countries. Also read: Palestinians easing coronavirus restrictions in West Bank It has also been found out that, sadly, India is one of the leading countries in this study as the World Bank has estimated that around 12 million of its citizens will be pushed to the very margins this year. Daily wage workers -- hawkers, roadside vendors, workers employed in the construction industry --and those employed by small businesses have been the worst-affected groups. "Much of the Indian government's efforts to mitigate poverty over the years could be negated in a matter of just a few months," said Ashwajit Singh, managing director of IPE Global, to a media organization. He also predicted that more people could die from hunger, than virus. Also read: Trump may lose in a landslide because of economic downturn, election model predicts A World Bank report recently concluded that India had been making significant progress and was close to losing its status as the country with the most poor citizens. However, the lockdown might reverse the gains and out India back in that category. A report by Centre for Monitoring Indian Economy (CMIE) and the World Bank observed more than 80% of households had experienced a drop income, which was majorly due to the lockdown, and not because of coronavirus. These households, may not be able to recover or survive much longer without aid from the government, according to this report. The economy was already at its slowest pace in over a decade, and the lockdown initiated due to the pandemic made things worse for the economy. This lockdown has pushed the economy to what may be its first full-year contraction in more than four decades. According to data from Johns Hopkins University, India is Asia's virus hotspot with more than 151,000 infections.

Almost 49 million people worldwide to end in extreme poverty; 12 million Indians affected

The European Commission will unveil a mega stimulus plan on Wednesday that help EU's economy after being hit by the coronavirus pandemic. The plan will include a mix of grants, loans and guarantees exceeding 1 trillion euros that raised controversy even before it was announced.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/nations-begin-to-loosen-restrictions-amid-coronavirus-pandemic-301199" hreflang="en">Nations begin to loosen restrictions amid coronavirus pandemic</a>

This stimulus package aims to help countries and sectors that have been worst hit by coronavirus to recover as soon as possible. This is to protect the European Union's single market which consists of 450 million people from being fragmented by divergent economic growth and wealth levels as the 27-nation bloc emerges from its deepest-ever recession expected this year.

Also read:&nbsp;<a href="https://www.wionews.com/world/chinas-health-scores-for-citizens-here-to-stay-301192" hreflang="en">China's 'health scores' for citizens here to stay?</a>

The package is for countries like Italy, Greece, France, Portugal or Spain are burdened with high debt, they are dependant on the tourism sector. &nbsp;This sector has faced maximum losses due to the pandemic.&nbsp;

The controversy of the plan is that the Commission will borrow cheaply on the market against the security of the EU budget and then give some of the borrowed money, rather than lend it on, to those who need it most.

The stimulus package will also grant loans, repaid by governments who take them, and guarantees that could draw in many times more in private cash by reducing the risk of various investments.

But for countries like Netherlands, Sweden, Austria or Denmark, such grants are a concern as these loans will be financed by joint borrowing. Which means higher national contributions to the EU budget in the future or new taxes assigned to the EU.

The European Commission will propose new taxes as a follow up on its 2018 proposal. In 2018, the Commission asked EU governments to give it EU revenues from a tax on plastics and some money from the CO2 emissions trading scheme and national corporate taxes. It also proposed to phase out all the rebates various countries enjoy on their national contributions to the EU budget, halve the number of customs duties governments keep and to get a bigger share of the Value Added Tax paid to the EU.

The Commission did not get any support for the proposal two years ago.&nbsp;

The recovery money is to be used by the governments to transform to an economy that is climate neutral - emitting no more CO2 than it absorbs - by 2050 and more adapted to the digital age which are both EU priorities.

The European Commission will unveil a mega stimulus plan on Wednesday that help EU's economy after being hit by the coronavirus pandemic. The plan will include a mix of grants, loans and guarantees exceeding 1 trillion euros that raised controversy even before it was announced.

The European Commission will unveil a mega stimulus plan on Wednesday that help EU's economy after being hit by the coronavirus pandemic. The plan will include a mix of grants, loans and guarantees exceeding 1 trillion euros that raised controversy even before it was announced. Also read: Nations begin to loosen restrictions amid coronavirus pandemic This stimulus package aims to help countries and sectors that have been worst hit by coronavirus to recover as soon as possible. This is to protect the European Union's single market which consists of 450 million people from being fragmented by divergent economic growth and wealth levels as the 27-nation bloc emerges from its deepest-ever recession expected this year. Also read: China's 'health scores' for citizens here to stay? The package is for countries like Italy, Greece, France, Portugal or Spain are burdened with high debt, they are dependant on the tourism sector. This sector has faced maximum losses due to the pandemic. The controversy of the plan is that the Commission will borrow cheaply on the market against the security of the EU budget and then give some of the borrowed money, rather than lend it on, to those who need it most. The stimulus package will also grant loans, repaid by governments who take them, and guarantees that could draw in many times more in private cash by reducing the risk of various investments. But for countries like Netherlands, Sweden, Austria or Denmark, such grants are a concern as these loans will be financed by joint borrowing. Which means higher national contributions to the EU budget in the future or new taxes assigned to the EU. The European Commission will propose new taxes as a follow up on its 2018 proposal. In 2018, the Commission asked EU governments to give it EU revenues from a tax on plastics and some money from the CO2 emissions trading scheme and national corporate taxes. It also proposed to phase out all the rebates various countries enjoy on their national contributions to the EU budget, halve the number of customs duties governments keep and to get a bigger share of the Value Added Tax paid to the EU. The Commission did not get any support for the proposal two years ago. The recovery money is to be used by the governments to transform to an economy that is climate neutral - emitting no more CO2 than it absorbs - by 2050 and more adapted to the digital age which are both EU priorities.

European Union to unveil a mega stimulus package to recover economy

As the world battles coronavirus, a lot of countries have been having a hard time saving their economy. Pakistan, a country that has already been struggling economically, has seen a steep decline in the economy.

Due to this, the World Bank has approved a USD 500 million loan for Pakistan to help the country out of a major economic crisis.

World Bank has decided to help Pakistan once again after four years. This decision has been taken to help the country out of a major economy crisis allegedly caused due to the coronavirus pandemic, according to a media report.

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The money is to help the country get better access to quality healthcare and education, support economic opportunities for women and strengthen social safety nets as the country braces to limit the impact of the COVID-19 pandemic, a media organisation reported.

"Political risks are high because COVID-19 response adds uncertainty to the relations among the federating units," said the World Bank documents.

Pakistan has been given 30 years to return the money back to World Bank.

"The global COVID-19 pandemic is impacting day-to-day life in Pakistan, not solely from economic disruptions but also additional stress on public services that jeopardise human capital accumulation," said World Bank Country Director for Pakistan Illango Patchamuthu.

The World Bank documents underlined that the government had committed to staying the course and would be supported by the World Bank, International Monetary Fund (IMF) and Asian Development Bank (ADB) to ensure that.&nbsp;

As the microeconomic risk is higher now, due to the pandemic, it is riskier and tougher for Pakistan.

World Bank has asked Pakistan to&nbsp;restructure the existing Debt Policy Coordination Office into a single Debt Management Office. The proposed structure will not just be a coordinating entity like the Debt Policy Coordination Office that only advises the finance minister.

(With inputs from PTI)

As the world battles coronavirus, a lot of countries have been having a hard time saving their economy. Pakistan, a country that has already been struggling economically, has seen a steep decline in the economy.

As the world battles coronavirus, a lot of countries have been having a hard time saving their economy. Pakistan, a country that has already been struggling economically, has seen a steep decline in the economy. Due to this, the World Bank has approved a USD 500 million loan for Pakistan to help the country out of a major economic crisis. World Bank has decided to help Pakistan once again after four years. This decision has been taken to help the country out of a major economy crisis allegedly caused due to the coronavirus pandemic, according to a media report. Have a look: Eid al-Fitr observed amid coronavirus pandemic across the globe! The money is to help the country get better access to quality healthcare and education, support economic opportunities for women and strengthen social safety nets as the country braces to limit the impact of the COVID-19 pandemic, a media organisation reported. "Political risks are high because COVID-19 response adds uncertainty to the relations among the federating units," said the World Bank documents. Pakistan has been given 30 years to return the money back to World Bank. "The global COVID-19 pandemic is impacting day-to-day life in Pakistan, not solely from economic disruptions but also additional stress on public services that jeopardise human capital accumulation," said World Bank Country Director for Pakistan Illango Patchamuthu. The World Bank documents underlined that the government had committed to staying the course and would be supported by the World Bank, International Monetary Fund (IMF) and Asian Development Bank (ADB) to ensure that. As the microeconomic risk is higher now, due to the pandemic, it is riskier and tougher for Pakistan. World Bank has asked Pakistan to restructure the existing Debt Policy Coordination Office into a single Debt Management Office. The proposed structure will not just be a coordinating entity like the Debt Policy Coordination Office that only advises the finance minister. (With inputs from PTI)

World Bank approves USD 500 million loan for Pakistan

THe United Kingdom, which has gone through a major economic crisis due to coronavirus, has asked employers to cover 20-30 per cent of furloughed employees' wages from August.

This step has been taken to reduce the burden of the economic crisis on the government finances.

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"The Treasury has drawn up plans that would require employers to cover between 20 and 30 per cent of people’s wages. They would also be required to cover the cost of employer’s national insurance contributions, on average 5 per cent of wages," as reported by media.

The UK is struggling with an economic crisis and the finance minister, Rishi Sunak, stated last week that the country has been badly hit by the nationwide lockdown, and a lot of people may lose their jobs in the coming weeks, or months.

<a href="https://www.wionews.com/videos/united-kingdom-to-reduce-chinese-firms-investment-to-zero-by-2023-300559">Also watch:&nbsp;United Kingdom to reduce Chinese firm's investment to zero by 2023</a>

The government had&nbsp;also decided to extend the job retention scheme by four months on May 12, but told employers they would have to help to meet its cost from August.

Rishi Sunak is expected to announce the changes next week.

While the country is battling the economic crisis, the government is also urging locals not to step out of the house if not necessary, and to make sure they follow social distancing and other take other precautions, to help the government contain the spread of the virus.

There are almost 254,000 total cases in the UK right now, including 36,393 deaths.

THe United Kingdom, which has gone through a major economic crisis due to coronavirus, has asked employers to cover 20-30 per cent of furloughed employees' wages from August.

THe United Kingdom, which has gone through a major economic crisis due to coronavirus, has asked employers to cover 20-30 per cent of furloughed employees' wages from August. This step has been taken to reduce the burden of the economic crisis on the government finances. Also read: UK to introduce quarantine for international arrivals from June 8 "The Treasury has drawn up plans that would require employers to cover between 20 and 30 per cent of people’s wages. They would also be required to cover the cost of employer’s national insurance contributions, on average 5 per cent of wages," as reported by media. The UK is struggling with an economic crisis and the finance minister, Rishi Sunak, stated last week that the country has been badly hit by the nationwide lockdown, and a lot of people may lose their jobs in the coming weeks, or months. Also watch: United Kingdom to reduce Chinese firm's investment to zero by 2023 The government had also decided to extend the job retention scheme by four months on May 12, but told employers they would have to help to meet its cost from August. Rishi Sunak is expected to announce the changes next week. While the country is battling the economic crisis, the government is also urging locals not to step out of the house if not necessary, and to make sure they follow social distancing and other take other precautions, to help the government contain the spread of the virus. There are almost 254,000 total cases in the UK right now, including 36,393 deaths.

Employers to cover between 20-30% of furloughed employees' wages: UK

Pakistan's fiscal deficit will be significantly worse than projected this fiscal year, with the fallout from the novel coronavirus pandemic pushing millions into unemployment and poverty, according to government estimates reviewed by Reuters.

Pakistan began a phased lifting of its countrywide lockdown last week despite a rising rate of cases – a move pushed primarily by fears of an economic meltdown. The country has reported 35,788 COVID-19 cases and 770 deaths.

Due to "a shortfall in revenues; re-prioritising of expenditures and increase in public spending," the post-pandemic fiscal deficit could reach as high as 9.4% against an earlier projection of 7.4%, one of the finance ministry documents seen by Reuters said.

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Two government officials told Reuters on condition of anonymity that in recent meetings on the financial situation there were fears the deficit could even hit double digits.

That is higher than the previous upper estimate of 9% predicted by Pakistan's finance chief Abdul Hafeez Shaikh in a May 8 interview with Reuters.

Shaikh said on Thursday it is hard to give specific numbers given the pandemic's uncertainty, although the economy is to likely contract -1% to -1.5%.

"We think that right now where we're is likely to worsen," he said addressing a webinar.

<a href="https://www.wionews.com/pakistan/pakistan-to-resume-domestic-flights-from-saturday-298849">Also read:&nbsp;Pakistan to resume domestic flights from Saturday</a>

The impact on workers and poorer people is also stark, with estimates that the poverty headcount will rise from 24.3% to a base case of 29%, and a worst-case scenario of 33.5%, the documents said.

At least 3 million people will lose their jobs - 1 million in the industrial sector and 2 million in services.

The documents noted that Pakistan Institute of Development Economics, an autonomous research organisation set up by the government, has projected job losses could reach 18 million.

Tax collection dropped sharply by 16.4% in April, the internal estimates showed.

They also stated that exports are likely to fall by $2.8 billion to $3.8 billion, with a negative impact on remittances from the Middle East, United States and Europe, which are likely to remain around $20 billion to $21 billion against $21.8 billion in 2019.

However, a slump in imports will cut Pakistan's current account deficit to $4.5 billion in the fiscal year, from $13.8 billion in 2019.

The estimates say the economy will contract 1.5% for financial year 2020 against a rise of 3.29% in 2019.

Pakistan has already rolled out a 1.24 trillion Pakistani rupee ($7.71 billion) stimulus to support the economy and cash handouts to the poor.

Moody's on Thursday placed Pakistan's local and foreign currency long-term issuer B3 ratings under review for downgrade, citing a potential default on private sector debt.

External help

Officials say Pakistan is confident of getting at least $5.4 billion in external financial help, including $1.386 billion already received from the IMF as rapid financing to mitigate the coronavirus losses, and a debt rescheduling of $1.8 billion from G20 countries.

That is aside from money expected from the IMF's three-year $6 billion support programme the country entered last year, according to two officials familiar with the situation.

"Our external finance outlook appears to be very good at the moment," one of the top officials told Reuters. "Our expectation and our assessment is very positive."

The officials said Pakistan was receiving $500 million in coronavirus-related support from the Asian Development Bank, and around $1 billion from the World Bank, that will also carry forward another $700 million in projects from last year.

Pakistan has also requested long-time ally China to roll over payments related to the power projects set up as part of Belt and Road initiative.

Finance chief Shaikh is to present a budget in two weeks aimed at finding ways to generate revenues and cut expenditures.

Pakistan's fiscal deficit will be significantly worse than projected this fiscal year, with the fallout from the novel coronavirus pandemic pushing millions into unemployment and poverty, according to government estimates reviewed by Reuters.

Pakistan's fiscal deficit will be significantly worse than projected this fiscal year, with the fallout from the novel coronavirus pandemic pushing millions into unemployment and poverty, according to government estimates reviewed by Reuters. Pakistan began a phased lifting of its countrywide lockdown last week despite a rising rate of cases – a move pushed primarily by fears of an economic meltdown. The country has reported 35,788 COVID-19 cases and 770 deaths. Due to "a shortfall in revenues; re-prioritising of expenditures and increase in public spending," the post-pandemic fiscal deficit could reach as high as 9.4% against an earlier projection of 7.4%, one of the finance ministry documents seen by Reuters said. Also read: Myanmar army generals confess abusing prisoners in Rakhine state Two government officials told Reuters on condition of anonymity that in recent meetings on the financial situation there were fears the deficit could even hit double digits. That is higher than the previous upper estimate of 9% predicted by Pakistan's finance chief Abdul Hafeez Shaikh in a May 8 interview with Reuters. Shaikh said on Thursday it is hard to give specific numbers given the pandemic's uncertainty, although the economy is to likely contract -1% to -1.5%. "We think that right now where we're is likely to worsen," he said addressing a webinar. Also read: Pakistan to resume domestic flights from Saturday The impact on workers and poorer people is also stark, with estimates that the poverty headcount will rise from 24.3% to a base case of 29%, and a worst-case scenario of 33.5%, the documents said. At least 3 million people will lose their jobs - 1 million in the industrial sector and 2 million in services. The documents noted that Pakistan Institute of Development Economics, an autonomous research organisation set up by the government, has projected job losses could reach 18 million. Tax collection dropped sharply by 16.4% in April, the internal estimates showed. They also stated that exports are likely to fall by $2.8 billion to $3.8 billion, with a negative impact on remittances from the Middle East, United States and Europe, which are likely to remain around $20 billion to $21 billion against $21.8 billion in 2019. However, a slump in imports will cut Pakistan's current account deficit to $4.5 billion in the fiscal year, from $13.8 billion in 2019. The estimates say the economy will contract 1.5% for financial year 2020 against a rise of 3.29% in 2019. Pakistan has already rolled out a 1.24 trillion Pakistani rupee ($7.71 billion) stimulus to support the economy and cash handouts to the poor. Moody's on Thursday placed Pakistan's local and foreign currency long-term issuer B3 ratings under review for downgrade, citing a potential default on private sector debt. External help Officials say Pakistan is confident of getting at least $5.4 billion in external financial help, including $1.386 billion already received from the IMF as rapid financing to mitigate the coronavirus losses, and a debt rescheduling of $1.8 billion from G20 countries. That is aside from money expected from the IMF's three-year $6 billion support programme the country entered last year, according to two officials familiar with the situation. "Our external finance outlook appears to be very good at the moment," one of the top officials told Reuters. "Our expectation and our assessment is very positive." The officials said Pakistan was receiving $500 million in coronavirus-related support from the Asian Development Bank, and around $1 billion from the World Bank, that will also carry forward another $700 million in projects from last year. Pakistan has also requested long-time ally China to roll over payments related to the power projects set up as part of Belt and Road initiative. Finance chief Shaikh is to present a budget in two weeks aimed at finding ways to generate revenues and cut expenditures.

Pakistan's fiscal deficit to reach 9.4% post-pandemic

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill. A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years.

Global economic output to reduce by $8.5 trillion in 2 years

Britain's economy shrank by a record 5.8% in March as the coronavirus crisis escalated and the government shut down much of the country, according to official data that point towards an even bigger hit to come.

UK GDP falls by record 5.8% in March due to coronavirus crisis

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