The International Monetary fund is raising concerns over several key budget measures in Ukraine as the country negotiates a new 8 billion dollars loan package. While the government seeks to ease the impact of the ongoing war on its citizens... The IMF is warning that some policies may worsen Ukraine’s already fragile fiscal situation.

IMF Raises Red Flags on Ukraine Budget Ahead of Fresh Talks

The surge in record-high US debt shows no signs of abating anytime soon. In just four days this week, between October 23rd and 27th, the US added 100 billion dollars to its debt. In October, the country's debt surged by 500 billion dollars despite a government shutdown that should have ideally cut it. America’s debt spiral has reached a historic danger zone.

US Adds $100 Billion in Debt in Just Four Days

The International Monetary Fund (IMF) has sounded a stark warning on artificial intelligence (AI), describing it as both a potential engine for global productivity and a looming threat to economic stability, in its latest World Economic Outlook (WEO) report.


IMF gives warnings on tech & private credit surge

The international monetary fund painted a picture of cautious in its latest world economic outlook.
The October 2025 report showed some optimism, but several warning signs.
From the U.S. To Europe, to China and India,.The IMF outlook showed growth under pressure, mounting risks, and past buffers fading.

 IMF Flags Slower Global Growth in 2025 

Pakistan’s Finance Minister expresses optimism about reaching a staff-level agreement with the IMF regarding the latest payout. This deal is crucial for Pakistan’s economic stability and ongoing reforms. 

Pak Finance Minister Confident on IMF Staff Deal | WION

Indian-origin economist Gita Gopinath, serving as the first deputy managing director at the International Monetary Fund (IMF), announced she will step down from her position at the end of August and will return to her academic career as a professor of economics at Harvard University, the IMF said on Monday.&nbsp;Calling her service in the IMF a "once-in-a-lifetime opportunity," Gopinath thanked the Managing Director, Kristalina Georgieva, and her predecessor, Christine Lagarde, for appointing her as chief economist. "I now return to my roots in academia to continue pushing the research frontier in international finance and macroeconomics," she said.<h3>Who is Gita Gopinath?</h3>Born on December 8, 1971, in Kolkata, India, Gita Gopinath belongs to a Malayali Hindu Nair family from Kannur, Kerala. Gita is also related to the late communist party politician A. K. Gopalan. Gopinath's schooling was accomplished at Nirmala Convent School in Mysuru, and she later earned her bachelor's degree in economics from Lady Shri Ram College in 1992, followed by an MA from the Delhi School of Economics in 1994. Later, she received her second MA degree from the University of Washington in 1996 and completed her PhD degree at Princeton in 2001.&nbsp;After her PhD in 2001, Gita was employed as an assistant professor at the University of Chicago Booth School of Business. After 4 years, in 2005, she moved to the economics department of Harvard University, where she later became the John Zwanstra Professor of International Studies and Economics, as per the report in NDTV.&nbsp;In October 2018, Gopinath made history as the first woman to be appointed as Chief Economist of the IMF. During the COVID-19 pandemic, she co-authored "Pandemic Paper," which led to the creation of a Multilateral Task Force in collaboration with the World Bank, WTO, and WHO.&nbsp;By June 2021, she became a member of the World Bank-IMF High-Level Advisory Group on Sustainable and Inclusive Recovery effort. By December of the same year, she was promoted to First Deputy Managing Director. She has also served as the co-director of the International Finance and Macroeconomics Programme at NBER and gave expert guidance to the Federal Reserve Banks of Boston and New York.&nbsp;Back in India, Gopinath held an honorary post as an economic advisor to Kerala Chief Minister Pinarayi Vijayan in 2016. A naturalised American citizen with Overseas Citizen of India (OCI) status, Gopinath is married to Iqbal Singh Dhaliwal, a classmate from the Delhi School of Economics, with whom she has a son who was born in 2002 as ‘Rohil.’&nbsp;

Gita Gopinath thanked the Managing Director, Kristalina Georgieva, and her predecessor, Christine Lagarde, for appointing her as chief economist and called her service in the IMF a “once-in-a-lifetime opportunity.”

Indian-origin economist Gita Gopinath, serving as the first deputy managing director at the International Monetary Fund (IMF), announced she will step down from her position at the end of August and will return to her academic career as a professor of economics at Harvard University, the IMF said on Monday. Calling her service in the IMF a "once-in-a-lifetime opportunity," Gopinath thanked the Managing Director, Kristalina Georgieva, and her predecessor, Christine Lagarde, for appointing her as chief economist. "I now return to my roots in academia to continue pushing the research frontier in international finance and macroeconomics," she said. Who is Gita Gopinath? Born on December 8, 1971, in Kolkata, India, Gita Gopinath belongs to a Malayali Hindu Nair family from Kannur, Kerala. Gita is also related to the late communist party politician A. K. Gopalan. Gopinath's schooling was accomplished at Nirmala Convent School in Mysuru, and she later earned her bachelor's degree in economics from Lady Shri Ram College in 1992, followed by an MA from the Delhi School of Economics in 1994. Later, she received her second MA degree from the University of Washington in 1996 and completed her PhD degree at Princeton in 2001. After her PhD in 2001, Gita was employed as an assistant professor at the University of Chicago Booth School of Business. After 4 years, in 2005, she moved to the economics department of Harvard University, where she later became the John Zwanstra Professor of International Studies and Economics, as per the report in NDTV. In October 2018, Gopinath made history as the first woman to be appointed as Chief Economist of the IMF. During the COVID-19 pandemic, she co-authored "Pandemic Paper," which led to the creation of a Multilateral Task Force in collaboration with the World Bank, WTO, and WHO. By June 2021, she became a member of the World Bank-IMF High-Level Advisory Group on Sustainable and Inclusive Recovery effort. By December of the same year, she was promoted to First Deputy Managing Director. She has also served as the co-director of the International Finance and Macroeconomics Programme at NBER and gave expert guidance to the Federal Reserve Banks of Boston and New York. Back in India, Gopinath held an honorary post as an economic advisor to Kerala Chief Minister Pinarayi Vijayan in 2016. A naturalised American citizen with Overseas Citizen of India (OCI) status, Gopinath is married to Iqbal Singh Dhaliwal, a classmate from the Delhi School of Economics, with whom she has a son who was born in 2002 as ‘Rohil.’

Gita Gopinath thanked the Managing Director, Kristalina Georgieva, and her predecessor, Christine Lagarde, for appointing her as chief economist and called her service in the IMF a “once-in-a-lifetime opportunity.”

Who is Gita Gopinath? Indian-origin economist who stepped down as IMF's first deputy managing director

China has rolled over $3.4 billion in loans to Pakistan, a major financial boost that, along with other inflows, is expected to raise the country’s foreign exchange reserves to $14 billion, meeting a critical benchmark set by the International Monetary Fund (IMF). According to senior officials from Pakistan’s finance ministry, Beijing has extended the maturity of a $2.1 billion deposit that has remained in the State Bank of Pakistan’s reserves for the last three years. In addition, a $1.3 billion commercial loan that Islamabad had repaid two months ago has been refinanced.&nbsp;“These inflows bring our reserves in line with the IMF target,” one official told&nbsp;Reuters&nbsp;on June 29, speaking on condition of anonymity as an official announcement has not yet been made.&nbsp;In addition to the Chinese rollover, Pakistan has secured $1 billion from commercial banks in West Asia and another $500 million from multilateral institutions. Combined, these financial injections have helped Islamabad reach the $14 billion reserve level required by the IMF at the close of the fiscal year on June 30.&nbsp;<h2>Chinese lending crucial to IMF programme compliance</h2>&nbsp;The rollover is particularly significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement, and the Chinese support plays a critical role in fulfilling this obligation. Chinese financial assistance has repeatedly been a lifeline for Pakistan in recent years. In March, Beijing extended the maturity of a separate $2 billion loan by one year, reflecting ongoing cooperation between the two nations.&nbsp;Rolling over loans typically involves renegotiating repayment timelines without requiring immediate settlement, allowing the borrower to retain access to funds while easing repayment pressures.&nbsp;Officials in Islamabad say that economic stability is gradually returning, crediting fiscal reforms enacted under the IMF programme. However, they acknowledge that continued external support is vital to keep the recovery on track and avoid balance-of-payments pressures.&nbsp;Pakistan has long struggled with low foreign reserves and external debt repayments. With IMF targets now met, policymakers hope to shift focus toward structural economic reforms and sustainable growth.

The rollover by China is significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement.

China has rolled over $3.4 billion in loans to Pakistan, a major financial boost that, along with other inflows, is expected to raise the country’s foreign exchange reserves to $14 billion, meeting a critical benchmark set by the International Monetary Fund (IMF). According to senior officials from Pakistan’s finance ministry, Beijing has extended the maturity of a $2.1 billion deposit that has remained in the State Bank of Pakistan’s reserves for the last three years. In addition, a $1.3 billion commercial loan that Islamabad had repaid two months ago has been refinanced. “These inflows bring our reserves in line with the IMF target,” one official told Reuters on June 29, speaking on condition of anonymity as an official announcement has not yet been made. In addition to the Chinese rollover, Pakistan has secured $1 billion from commercial banks in West Asia and another $500 million from multilateral institutions. Combined, these financial injections have helped Islamabad reach the $14 billion reserve level required by the IMF at the close of the fiscal year on June 30. Chinese lending crucial to IMF programme compliance The rollover is particularly significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement, and the Chinese support plays a critical role in fulfilling this obligation. Chinese financial assistance has repeatedly been a lifeline for Pakistan in recent years. In March, Beijing extended the maturity of a separate $2 billion loan by one year, reflecting ongoing cooperation between the two nations. Rolling over loans typically involves renegotiating repayment timelines without requiring immediate settlement, allowing the borrower to retain access to funds while easing repayment pressures. Officials in Islamabad say that economic stability is gradually returning, crediting fiscal reforms enacted under the IMF programme. However, they acknowledge that continued external support is vital to keep the recovery on track and avoid balance-of-payments pressures. Pakistan has long struggled with low foreign reserves and external debt repayments. With IMF targets now met, policymakers hope to shift focus toward structural economic reforms and sustainable growth.

The rollover by China is significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement.

China rolls over $3.4 billion in loans to Pakistan, boosting reserves to IMF target

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years.&nbsp;The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations.<h2>How does collateralised lending work?</h2>Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders.&nbsp;“Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters.The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance.<h2>The numbers behind the debt trap</h2>Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years.<figure class="table"><table><tbody><tr><td>Year</td><td>Collateralised Loans (US$ bn)</td><td>Uncollateralised Loans (US$ bn)</td></tr><tr><td>2000</td><td>~1</td><td>~1</td></tr><tr><td>2005</td><td>~12</td><td>~9</td></tr><tr><td>2010</td><td>~70</td><td>~30</td></tr><tr><td>2014</td><td>~55</td><td>~25</td></tr><tr><td>2016</td><td>~50</td><td>~30</td></tr><tr><td>2020</td><td>~10</td><td>~15</td></tr></tbody></table></figure>Source: AidData / HCC; Graphic: Karin Strohecker via Reuters(All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study.<h2>Fiscal control versus Chinese leverage</h2>According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations.&nbsp;In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023.<h2>IMF, World Bank raise the red flag</h2>Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability.&nbsp;“The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters.<h2>A broader pattern of financial dominance</h2>This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse.&nbsp;In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms.For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public.&nbsp;With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms.&nbsp;(With inputs from the agencies) &nbsp;

By tying loans to oil, copper and other exports, China is locking key revenues offshore and tightening financial grip on low income, resource rich economies.

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years. The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations. How does collateralised lending work? Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders. “Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters. The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance. The numbers behind the debt trap Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years. Year Collateralised Loans (US$ bn) Uncollateralised Loans (US$ bn) 2000 ~1 ~1 2005 ~12 ~9 2010 ~70 ~30 2014 ~55 ~25 2016 ~50 ~30 2020 ~10 ~15 Source: AidData / HCC; Graphic: Karin Strohecker via Reuters (All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study. Fiscal control versus Chinese leverage According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations. In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023. IMF, World Bank raise the red flag Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability. “The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters. A broader pattern of financial dominance This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse. In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms. For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public. With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms. (With inputs from the agencies)

China’s collateralised loans are eroding fiscal control in developing nations, warns major international study.

China’s collateralised lending traps emerging economies in debt control crisis, says study

Bangladesh is set to receive $1.3 billion in IMF funds on June 26, as part of the country’s ongoing $4.7 billion loan programme, following a months-long delay. The disbursement, approved by the IMF Executive Board on Monday night, includes the fourth and fifth tranches, according to Bangladesh’s Finance Ministry and Bangladesh Bank, as quoted by Prothom Alo.&nbsp;The fresh funds will raise total disbursements under the programme to $3.61 billion, leaving $1.09 billion to be delivered later in two tranches. The final approval came after Bangladesh agreed to key IMF conditions, including implementing a market-based exchange rate, as per Reuters.<h2>Why was the disbursement delayed?</h2>The fourth tranche was initially scheduled for December 2024. However, as per Bangladesh Bank officials, a snowstorm in Washington disrupted IMF board operations, forcing repeated postponements. Subsequent board meetings in February and March did not include Bangladesh’s loan review, and an IMF team visiting Dhaka in April offered no commitment on the next tranche. Tensions reportedly emerged over the IMF’s demand for foreign exchange reform, which Dhaka resisted for several months.&nbsp;Finally, following virtual negotiations in May led by Bangladesh Bank Governor Ahsan H. Mansur, an agreement was reached. On May 14, the IMF confirmed that disbursement would proceed in June, as per an official IMF statement quoted by Reuters.<h2>What is the IMF loan programme?</h2>The IMF approved the $4.7 billion package on January 31, 2023, to help Bangladesh manage its macroeconomic pressures, stabilise foreign reserves, and push forward reforms. At the time, the IMF stated the programme would also support climate resilience and inclusive growth.&nbsp;The loan structure includes:      •     $3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF)      •     $1.4 billion under the Resilience and Sustainability Facility (RSF) — a climate-linked fund, from which Bangladesh became the first Asian country to receive financing, as per IMF documentation.&nbsp;So far, Bangladesh has received:      •     $476.3 million in February 2023      •     $681 million in December 2023      •     $1.15 billion in June 2024&nbsp;The upcoming instalment, $884 million under ECF/EFF and $453 million under RSF, totals $1.33 billion, as per Reuters reporting based on the IMF Board decision.<h2>What’s next?</h2>According to Reuters, IMF officials praised Bangladesh for “broadly satisfactory performance” despite political and economic challenges but called for further action on structural reforms. Former World Bank economist Zahid Hossain told Prothom Alo that the disbursement will help stabilise foreign exchange reserves. However, he stressed the need to focus on “fuel subsidy reform, revenue mobilisation, and banking sector cleanup” to meet upcoming IMF targets.&nbsp;The final $1.09 billion will be disbursed in two phases, contingent on continued compliance with IMF conditionalities, particularly in the areas of fiscal discipline and exchange rate flexibility.&nbsp;(With inputs from the agencies) &nbsp;

This funding increases total disbursements to $3.61 billion, leaving $1.09 billion for later. The loan aims to stabilise the economy, support climate resilience, and advance reforms. Future disbursements depend on continued compliance with IMF conditions.

Bangladesh is set to receive $1.3 billion in IMF funds on June 26, as part of the country’s ongoing $4.7 billion loan programme, following a months-long delay. The disbursement, approved by the IMF Executive Board on Monday night, includes the fourth and fifth tranches, according to Bangladesh’s Finance Ministry and Bangladesh Bank, as quoted by Prothom Alo. The fresh funds will raise total disbursements under the programme to $3.61 billion, leaving $1.09 billion to be delivered later in two tranches. The final approval came after Bangladesh agreed to key IMF conditions, including implementing a market-based exchange rate, as per Reuters. Why was the disbursement delayed? The fourth tranche was initially scheduled for December 2024. However, as per Bangladesh Bank officials, a snowstorm in Washington disrupted IMF board operations, forcing repeated postponements. Subsequent board meetings in February and March did not include Bangladesh’s loan review, and an IMF team visiting Dhaka in April offered no commitment on the next tranche. Tensions reportedly emerged over the IMF’s demand for foreign exchange reform, which Dhaka resisted for several months. Finally, following virtual negotiations in May led by Bangladesh Bank Governor Ahsan H. Mansur, an agreement was reached. On May 14, the IMF confirmed that disbursement would proceed in June, as per an official IMF statement quoted by Reuters. What is the IMF loan programme? The IMF approved the $4.7 billion package on January 31, 2023, to help Bangladesh manage its macroeconomic pressures, stabilise foreign reserves, and push forward reforms. At the time, the IMF stated the programme would also support climate resilience and inclusive growth. The loan structure includes:       •     $3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF)       •     $1.4 billion under the Resilience and Sustainability Facility (RSF) — a climate-linked fund, from which Bangladesh became the first Asian country to receive financing, as per IMF documentation. So far, Bangladesh has received:       •     $476.3 million in February 2023       •     $681 million in December 2023       •     $1.15 billion in June 2024 The upcoming instalment, $884 million under ECF/EFF and $453 million under RSF, totals $1.33 billion, as per Reuters reporting based on the IMF Board decision. What’s next? According to Reuters, IMF officials praised Bangladesh for “broadly satisfactory performance” despite political and economic challenges but called for further action on structural reforms. Former World Bank economist Zahid Hossain told Prothom Alo that the disbursement will help stabilise foreign exchange reserves. However, he stressed the need to focus on “fuel subsidy reform, revenue mobilisation, and banking sector cleanup” to meet upcoming IMF targets. The final $1.09 billion will be disbursed in two phases, contingent on continued compliance with IMF conditionalities, particularly in the areas of fiscal discipline and exchange rate flexibility. (With inputs from the agencies)

Bangladesh will receive $1.3 billion from the IMF on June 26, part of a $4.7 billion loan program, after delays due to a disrupted IMF board and negotiations over foreign exchange reform.

Bangladesh to receive $1.3 billion from IMF after reform deal

The International Monetary Fund (IMF) has issued a cautionary note, signalling that the brief rebound in global trade—fueled by firms rushing to beat US tariffs—is now losing steam. But the&nbsp; global economy remains clouded by uncertainty, with trade wars and economic nationalism reshaping long-held dynamics.&nbsp;At a press briefing Thursday, IMF spokesperson Julie Kozack said recent US trade negotiations—including deals with China and the UK—and a partial tariff rollback are “modestly positive” signs, as per Bloomberg.&nbsp;However, she stressed that escalating steel and aluminium tariffs, coupled with volatile import flows, point to an unpredictable road ahead.&nbsp;“We are in an environment of very high uncertainty,” Kozack said. “And uncertainty in general tends to dampen economic activity,” as quoted by Bloomberg.&nbsp;<h2>Global slowdown begins to bite</h2>Data from the US Commerce Department earlier this month showed a record 20% plunge in April imports, as companies halted the pre-emptive stockpiling of goods. As per Bloomberg, the IMF noted that this dramatic reversal reflects the exhaustion of the so-called “front-loading effect” that temporarily inflated trade volumes earlier in 2025.&nbsp;The sharp fall in imports also led to a 46 per cent narrowing of the US goods trade deficit, a development that has momentarily offset recessionary concerns in Q1. But analysts warn the effect is unlikely to sustain growth.&nbsp;“We expect second-quarter data to reflect not just weaker trade volumes but also slower consumer spending and inventory rundown,” said Rajiv Malhotra, a global economist at HSBC, as quoted by Bloomberg.<h2>IMF to revise growth forecast in July</h2>The IMF plans to release its updated World Economic Outlook&nbsp;next month. In April, the Fund had already cut its global GDP growth estimate to 2.8 per cent, down from 3.3 per cent, citing trade frictions and financial volatility, as per Bloomberg.&nbsp;Despite a temporary tariff pause by the US on April 9—part of a broader de-escalation in its dispute with China and allies—the Fund believes the global trade system is now under structural pressure.&nbsp;The World Bank&nbsp;has echoed this view, warning that trade tensions could impact two-thirds of developing economies&nbsp;and deepen inequality, especially in export-dependent regions.<h2>Trade war fatigue sets in</h2>President Donald Trump’s aggressive tariff policy has led to steep duties on steel, aluminium, and a variety of Chinese imports. These moves were partially rolled back after recent talks in London and Geneva, but the damage may be done.&nbsp;The OECD&nbsp;now projects that global trade growth will drop to 2.8% in 2025&nbsp;and further slow to 2.2% by 2026, far below pre-pandemic averages. Emerging markets, particularly in Asia and Africa, are expected to bear the brunt.&nbsp;“Policymakers must focus on reducing trade policy uncertainty and rebuilding trust,” Kozack said, adding that domestic reforms and diversified supply chains are essential to economic resilience, as quoted by Bloomberg.&nbsp;<h2>What’s at stake?</h2>According to Bloomberg, since 2020, EB-5 visa holders have contributed an estimated $37 billion in direct investment&nbsp;to the US economy—a flow now under threat as geopolitical tensions and policy uncertainty deter high-net-worth investors.&nbsp;Meanwhile, IMF analysts, as quoted by Reuters, have warned of a growing 5 per cent probability&nbsp;that global GDP could dip below 0.4 per cent&nbsp;in worst-case scenarios if trade hostilities between major economies re-escalate.&nbsp;Adding to the gloom, US Commerce Department data cited by CNBC&nbsp;reveals that US imports in April fell to $276 billion, marking a historic monthly drop and effectively signalling the end of the short-lived surge in trade volumes that had been driven by companies stockpiling ahead of fresh US tariffs.&nbsp;The IMF’s latest signal reinforces what global businesses already suspect—2025’s early trade momentum is fading, and the world is entering a new phase of slow, uncertain growth.&nbsp;While the recent US-China detente offers hope, the path to stability will depend on consistency—something that Washington and Beijing have struggled with in recent years.&nbsp;Until then, the global trade engine may continue to sputter, caught between geopolitical crosswinds and domestic politics.&nbsp;(With inputs from the agencies)&nbsp;

The IMF flags an unwinding of global trade momentum following US tariff pauses, with risks of reduced GDP growth, falling imports, and rising financial instability.

The International Monetary Fund (IMF) has issued a cautionary note, signalling that the brief rebound in global trade—fueled by firms rushing to beat US tariffs—is now losing steam. But the global economy remains clouded by uncertainty, with trade wars and economic nationalism reshaping long-held dynamics. At a press briefing Thursday, IMF spokesperson Julie Kozack said recent US trade negotiations—including deals with China and the UK—and a partial tariff rollback are “modestly positive” signs, as per Bloomberg. However, she stressed that escalating steel and aluminium tariffs, coupled with volatile import flows, point to an unpredictable road ahead. “We are in an environment of very high uncertainty,” Kozack said. “And uncertainty in general tends to dampen economic activity,” as quoted by Bloomberg. Global slowdown begins to bite Data from the US Commerce Department earlier this month showed a record 20% plunge in April imports, as companies halted the pre-emptive stockpiling of goods. As per Bloomberg, the IMF noted that this dramatic reversal reflects the exhaustion of the so-called “front-loading effect” that temporarily inflated trade volumes earlier in 2025. The sharp fall in imports also led to a 46 per cent narrowing of the US goods trade deficit, a development that has momentarily offset recessionary concerns in Q1. But analysts warn the effect is unlikely to sustain growth. “We expect second-quarter data to reflect not just weaker trade volumes but also slower consumer spending and inventory rundown,” said Rajiv Malhotra, a global economist at HSBC, as quoted by Bloomberg. IMF to revise growth forecast in July The IMF plans to release its updated World Economic Outlook next month. In April, the Fund had already cut its global GDP growth estimate to 2.8 per cent, down from 3.3 per cent, citing trade frictions and financial volatility, as per Bloomberg. Despite a temporary tariff pause by the US on April 9—part of a broader de-escalation in its dispute with China and allies—the Fund believes the global trade system is now under structural pressure. The World Bank has echoed this view, warning that trade tensions could impact two-thirds of developing economies and deepen inequality, especially in export-dependent regions. Trade war fatigue sets in President Donald Trump’s aggressive tariff policy has led to steep duties on steel, aluminium, and a variety of Chinese imports. These moves were partially rolled back after recent talks in London and Geneva, but the damage may be done. The OECD now projects that global trade growth will drop to 2.8% in 2025 and further slow to 2.2% by 2026, far below pre-pandemic averages. Emerging markets, particularly in Asia and Africa, are expected to bear the brunt. “Policymakers must focus on reducing trade policy uncertainty and rebuilding trust,” Kozack said, adding that domestic reforms and diversified supply chains are essential to economic resilience, as quoted by Bloomberg. What’s at stake? According to Bloomberg, since 2020, EB-5 visa holders have contributed an estimated $37 billion in direct investment to the US economy—a flow now under threat as geopolitical tensions and policy uncertainty deter high-net-worth investors. Meanwhile, IMF analysts, as quoted by Reuters, have warned of a growing 5 per cent probability that global GDP could dip below 0.4 per cent in worst-case scenarios if trade hostilities between major economies re-escalate. Adding to the gloom, US Commerce Department data cited by CNBC reveals that US imports in April fell to $276 billion, marking a historic monthly drop and effectively signalling the end of the short-lived surge in trade volumes that had been driven by companies stockpiling ahead of fresh US tariffs. The IMF’s latest signal reinforces what global businesses already suspect—2025’s early trade momentum is fading, and the world is entering a new phase of slow, uncertain growth. While the recent US-China detente offers hope, the path to stability will depend on consistency—something that Washington and Beijing have struggled with in recent years. Until then, the global trade engine may continue to sputter, caught between geopolitical crosswinds and domestic politics. (With inputs from the agencies)

IMF warns of slowing global trade as US tariff surges fade, risking weaker economic growth amid high uncertainty.&nbsp;

IMF warns of global trade dip as US tariff wave reverses 2025 surge

Stanley Fischer, the quietly powerful figure who influenced modern macroeconomics across academia, global financial institutions, and central banks, passed away on Saturday at the age of 81.&nbsp;&nbsp;His death was confirmed by the Bank of Israel, according to Bloomberg, marking the end of an era in economic thought and crisis management.&nbsp;Fischer’s life was one of service to stability, whether as an academic at MIT, a crisis manager at the International Monetary Fund, or a central banker guiding Israel and the US through turbulent financial waters. The Financial Times&nbsp;once called him “the pocket-sized colossus of modern central banking.”<h2>From Africa to the world stage</h2>Born on 15 October 1943 in Mazabuka, Northern Rhodesia now Zambia, Fischer was raised in a Jewish family within southern Africa’s immigrant communities. As a teenager, he moved to Southern Rhodesia (now Zimbabwe), where he joined the Habonim Zionist youth movement and met his future wife, Rhoda Keet, as reported by The Times of Israel.&nbsp;He pursued economics at the London School of Economics, completing both his bachelor’s and master’s degrees by 1966.&nbsp; &nbsp;Fischer later moved to the United States to earn a PhD from the Massachusetts Institute of Technology (MIT), graduating in 1969 under the supervision of Nobel laureates Paul Samuelson and Robert Solow, according to Bloomberg.<h2>The teacher of titans</h2>Fischer began teaching at MIT in the 1970s and went on to shape a generation of economic policymakers who would lead the world’s most powerful institutions.&nbsp; &nbsp;Among his students were Ben Bernanke, former Chair of the US Federal Reserve; Mario Draghi, former President of the European Central Bank and later Prime Minister of Italy; Lawrence Summers, former US Treasury Secretary; Kazuo Ueda, the current Governor of the Bank of Japan; Greg Mankiw, who advised US President George W. Bush; and IMF chief economists Olivier Blanchard and Maurice Obstfeld, according to Bloomberg.&nbsp;Blanchard later remarked, “It is hard to think of any other macroeconomist alive who has had as much direct and indirect influence… on macroeconomic policy around the world,” Bloomberg reported.&nbsp;In 1978, Fischer co-authored the foundational textbook Macroeconomics&nbsp;with Rudi Dornbusch. The book educated generations of students and was still being updated decades later its 13th edition was released in 2018, according to Bloomberg.<h2>The global crisis whisperer</h2>Fischer was not just a teacher; he was a crisis whisperer for nations on the brink. From 1994 to 2001, he served as First Deputy Managing Director at the International Monetary Fund. During that period, he led responses to some of the most severe financial meltdowns in modern history, including the crises in Mexico, South Korea, Thailand, Indonesia, Russia, and Brazil.&nbsp; &nbsp;According to Bloomberg, he oversaw nearly 250 billion US dollars in emergency lending and became the face of the IMF’s crisis management during those turbulent years. &nbsp;Long before that, in 1985, Fischer helped design an economic stabilisation programme for Israel at a time when the country was struggling with hyperinflation. The plan, backed by 1.5 billion US dollars in American aid, helped pull the economy back from the brink.&nbsp; &nbsp;According to The Times of Israel, that experience solidified Fischer’s reputation as someone who could bridge theory and real-world application.&nbsp;Later, he moved to the private sector, serving as vice chairman at Citigroup. There, he chaired the bank’s country risk committee and advised its global strategy, as reported by Bloomberg.<h2>Israel’s central banker in crisis</h2>In 2005, Fischer accepted the role of Governor of the Bank of Israel and became an Israeli citizen. According to Bloomberg, he conducted meetings in fluent Hebrew and helped modernise the central bank’s structure and policy approach.&nbsp;His leadership during the 2008 global financial crisis drew global praise. The Bank of Israel was among the first central banks to cut interest rates at the onset of the crisis and among the first to raise them during the recovery.&nbsp; &nbsp;Fischer established a new Monetary Policy Committee, shifting authority from a single governor to a more collaborative six-member board that included external academic voices. Under his leadership, Israel’s economy grew every year during the global crisis, defying recessionary trends.<h2>From Jerusalem to Washington</h2>In 2014, Fischer was nominated by US President Barack Obama to serve as Vice Chair of the Federal Reserve under Janet Yellen.&nbsp;&nbsp;Although frequently mentioned as a possible candidate to head the Fed or the IMF, Fischer never reached those top roles, largely due to timing and age-related factors, according to Bloomberg.&nbsp;He retired from the Fed in 2017 and later became a senior adviser at BlackRock, the world’s largest asset manager.&nbsp;Reflecting on Fischer’s legacy, Lawrence Summers told Bloomberg, “In a just world, Stan would have served as Fed chairman or IMF managing director. But fate is fickle. And yet, his influence through teaching, writing, advising and leading touched hundreds of millions of lives.”&nbsp;Fischer’s wife, Rhoda, his partner since their teenage days in a Zionist youth group, passed away in 2020. He is survived by three children, and by a global network of students, colleagues, and admirers who carry forward his intellectual legacy.&nbsp;He once said that macroeconomics attracted him because it dealt with “big questions.” Through every classroom, crisis, and central bank, Stanley Fischer spent a lifetime answering those big questions with clarity, humility, and an unwavering sense of purpose.

Fischer was a crisis whisperer for nations on the brink, serving as First Deputy Managing Director at the International Monetary Fund from 1994 to 2001. 

Stanley Fischer, the quietly powerful figure who influenced modern macroeconomics across academia, global financial institutions, and central banks, passed away on Saturday at the age of 81. His death was confirmed by the Bank of Israel, according to Bloomberg, marking the end of an era in economic thought and crisis management. Fischer’s life was one of service to stability, whether as an academic at MIT, a crisis manager at the International Monetary Fund, or a central banker guiding Israel and the US through turbulent financial waters. The Financial Times once called him “the pocket-sized colossus of modern central banking.” From Africa to the world stage Born on 15 October 1943 in Mazabuka, Northern Rhodesia now Zambia, Fischer was raised in a Jewish family within southern Africa’s immigrant communities. As a teenager, he moved to Southern Rhodesia (now Zimbabwe), where he joined the Habonim Zionist youth movement and met his future wife, Rhoda Keet, as reported by The Times of Israel. He pursued economics at the London School of Economics, completing both his bachelor’s and master’s degrees by 1966. Fischer later moved to the United States to earn a PhD from the Massachusetts Institute of Technology (MIT), graduating in 1969 under the supervision of Nobel laureates Paul Samuelson and Robert Solow, according to Bloomberg. The teacher of titans Fischer began teaching at MIT in the 1970s and went on to shape a generation of economic policymakers who would lead the world’s most powerful institutions. Among his students were Ben Bernanke, former Chair of the US Federal Reserve; Mario Draghi, former President of the European Central Bank and later Prime Minister of Italy; Lawrence Summers, former US Treasury Secretary; Kazuo Ueda, the current Governor of the Bank of Japan; Greg Mankiw, who advised US President George W. Bush; and IMF chief economists Olivier Blanchard and Maurice Obstfeld, according to Bloomberg. Blanchard later remarked, “It is hard to think of any other macroeconomist alive who has had as much direct and indirect influence… on macroeconomic policy around the world,” Bloomberg reported. In 1978, Fischer co-authored the foundational textbook Macroeconomics with Rudi Dornbusch. The book educated generations of students and was still being updated decades later its 13th edition was released in 2018, according to Bloomberg. The global crisis whisperer Fischer was not just a teacher; he was a crisis whisperer for nations on the brink. From 1994 to 2001, he served as First Deputy Managing Director at the International Monetary Fund. During that period, he led responses to some of the most severe financial meltdowns in modern history, including the crises in Mexico, South Korea, Thailand, Indonesia, Russia, and Brazil. According to Bloomberg, he oversaw nearly 250 billion US dollars in emergency lending and became the face of the IMF’s crisis management during those turbulent years. Long before that, in 1985, Fischer helped design an economic stabilisation programme for Israel at a time when the country was struggling with hyperinflation. The plan, backed by 1.5 billion US dollars in American aid, helped pull the economy back from the brink. According to The Times of Israel, that experience solidified Fischer’s reputation as someone who could bridge theory and real-world application. Later, he moved to the private sector, serving as vice chairman at Citigroup. There, he chaired the bank’s country risk committee and advised its global strategy, as reported by Bloomberg. Israel’s central banker in crisis In 2005, Fischer accepted the role of Governor of the Bank of Israel and became an Israeli citizen. According to Bloomberg, he conducted meetings in fluent Hebrew and helped modernise the central bank’s structure and policy approach. His leadership during the 2008 global financial crisis drew global praise. The Bank of Israel was among the first central banks to cut interest rates at the onset of the crisis and among the first to raise them during the recovery. Fischer established a new Monetary Policy Committee, shifting authority from a single governor to a more collaborative six-member board that included external academic voices. Under his leadership, Israel’s economy grew every year during the global crisis, defying recessionary trends. From Jerusalem to Washington In 2014, Fischer was nominated by US President Barack Obama to serve as Vice Chair of the Federal Reserve under Janet Yellen. Although frequently mentioned as a possible candidate to head the Fed or the IMF, Fischer never reached those top roles, largely due to timing and age-related factors, according to Bloomberg. He retired from the Fed in 2017 and later became a senior adviser at BlackRock, the world’s largest asset manager. Reflecting on Fischer’s legacy, Lawrence Summers told Bloomberg, “In a just world, Stan would have served as Fed chairman or IMF managing director. But fate is fickle. And yet, his influence through teaching, writing, advising and leading touched hundreds of millions of lives.” Fischer’s wife, Rhoda, his partner since their teenage days in a Zionist youth group, passed away in 2020. He is survived by three children, and by a global network of students, colleagues, and admirers who carry forward his intellectual legacy. He once said that macroeconomics attracted him because it dealt with “big questions.” Through every classroom, crisis, and central bank, Stanley Fischer spent a lifetime answering those big questions with clarity, humility, and an unwavering sense of purpose.

Stanley Fischer, a prominent figure in modern macroeconomics, passed away at the age of 81.&nbsp;

Stanley Fischer: Architect of modern macroeconomics dies at 81

For the first time in more than three decades, Japan has lost its position as the world’s largest creditor nation. This resonates as a symbolic shift that reflects deeper vulnerabilities in the country’s economic foundations.&nbsp;&nbsp;According to data released by Japan’s Ministry of Finance, the nation’s net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, an all-time high, yet not enough to maintain its top ranking.&nbsp;Germany has now overtaken Japan, recording net external assets of ¥569.7 trillion, buoyed by its sizeable current account surplus of €248.7 billion last year, according to Bloomberg. China retained third place with net assets of ¥516.3 trillion, according to Bloomberg. &nbsp;This development marks the end of a 34-year reign for Japan, whose overseas assets have long reflected its post-war export dominance and global investment clout. The fall, though, is not due to a sudden decline in foreign investments, in fact, Japan’s assets grew by about 13 per cent year-on-year.&nbsp;&nbsp;Rather, a combination of yen depreciation and the relatively faster accumulation of wealth abroad by competitors like Germany have tilted the balance.&nbsp;A weaker yen, while enhancing the value of overseas holdings in local currency terms, also inflated Japan’s liabilities. The Ministry of Finance noted that Japanese businesses continued to invest robustly abroad, particularly in the US and UK, with sectors such as finance, insurance, and retail attracting considerable capital. &nbsp;Yet this outward investment boom is doing little to shield the domestic economy from escalating global pressures.<h2>Japan’s fragile position in a new global order</h2>The loss of creditor status is just one sign of Japan’s broader economic fragility. Despite high overseas asset growth, the domestic economy is grappling with multiple challenges: declining consumer confidence, ageing demographics, and trade frictions that are dampening industrial momentum. &nbsp;According to the International Monetary Fund (IMF), Japan’s economy grew by just 1 per cent in 2024. The IMF projects Japan’s growth to slow further in 2025, with real GDP expected to expand only 0.9 per cent, a stark contrast to its regional peers. Inflation, meanwhile, has remained persistently above the Bank of Japan’s target, averaging around 3.1 per cent in 2024, driven largely by energy prices and a weaker yen, as reported by Reuters.&nbsp;This stagnation is compounded by global trade shifts. The return of Donald Trump to the US presidency has reignited protectionist policies, with renewed tariffs rattling key Japanese sectors. According to Reuters, Japanese automakers are already reeling from a 25 per cent US tariff on finished cars and car parts.&nbsp;&nbsp;Toyota, the country’s largest company, has projected a $1.3 billion hit to its profits for April and May alone. Nissan is reportedly considering closing two domestic plants and shifting more production to the US to bypass rising trade barriers.&nbsp;These developments have triggered warnings from Japanese economists and officials. The automotive industry, a cornerstone of Japan’s GDP and employment is caught in a tightening vice of tariff shocks and supply chain disruptions. Public dissatisfaction is also rising, with wage growth lagging behind inflation, squeezing household budgets.&nbsp;While Japan’s economy struggles, others are rising, most notably India. According to ANI, NITI Aayog CEO BVR Subrahmanyam confirmed that India has overtaken Japan to become the world’s fourth-largest economy, citing the latest International Monetary Fund data. &nbsp;The IMF’s April 2025 World Economic Outlook estimates India’s nominal GDP will reach $4.187 trillion, slightly surpassing Japan’s projected $4.186 trillion. This shift underscores Japan’s declining share in the global economy and highlights a regional power rebalancing in Asia.<h2>Tokyo’s ¥980 billion shield to counter Trump’s tariffs</h2>According to the New York Times, in a bid to cushion the domestic blow from rising tariffs and inflation, the Japanese government has unveiled a ¥980 billion ($6.3 billion) emergency spending package. The funds reportedly aim to subsidise energy costs for households and provide support to small and medium-sized enterprises (SMEs) struggling under new trade constraints. &nbsp;Cabinet Secretary Yoshimasa Hayashi announced the package earlier this week, saying it was designed to “fully support” the population during a volatile economic phase. As per Reuters, the measures are also politically timed — the Kishida administration faces an upper house election in July, and public frustration is growing over stagnant wages and higher consumer prices. &nbsp;Meanwhile, Japan’s efforts to negotiate tariff relief from the US have hit a wall. Tokyo’s top trade envoy, Ryosei Akazawa, met Trump administration officials in Washington last week, but talks reportedly stalled.&nbsp;&nbsp;Trump officials have signalled that Japan’s primary demand an exemption from auto tariffs is currently off the table. Hopes now rest on the upcoming G7 Summit in Canada, where informal discussions may resume.&nbsp;Japan’s decline in economic influence symbolised by the loss of its top creditor status and its fall behind India in GDP rankings reflects more than just statistical shifts. It signals an urgent need for economic renewal in a nation facing demographic decline, external trade pressure, and internal stagnation.&nbsp;The government’s recent fiscal package offers short-term relief, but structural reforms are needed to chart a more sustainable path forward. Analysts point to innovation, productivity gains, and trade diversification as key to Japan’s future competitiveness.&nbsp;As global economic power continues to shift and trade alliances reshape, Japan must adapt or risk fading further from the world’s economic centre stage.

Business & Economy: Germany has now overtaken Japan, with net external assets of ¥569.7 trillion, supported by its €248.7 billion current account surplus. China retained third place with net assets of ¥516.3 trillion.

For the first time in more than three decades, Japan has lost its position as the world’s largest creditor nation. This resonates as a symbolic shift that reflects deeper vulnerabilities in the country’s economic foundations. According to data released by Japan’s Ministry of Finance, the nation’s net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, an all-time high, yet not enough to maintain its top ranking. Germany has now overtaken Japan, recording net external assets of ¥569.7 trillion, buoyed by its sizeable current account surplus of €248.7 billion last year, according to Bloomberg. China retained third place with net assets of ¥516.3 trillion, according to Bloomberg. This development marks the end of a 34-year reign for Japan, whose overseas assets have long reflected its post-war export dominance and global investment clout. The fall, though, is not due to a sudden decline in foreign investments, in fact, Japan’s assets grew by about 13 per cent year-on-year. Rather, a combination of yen depreciation and the relatively faster accumulation of wealth abroad by competitors like Germany have tilted the balance. A weaker yen, while enhancing the value of overseas holdings in local currency terms, also inflated Japan’s liabilities. The Ministry of Finance noted that Japanese businesses continued to invest robustly abroad, particularly in the US and UK, with sectors such as finance, insurance, and retail attracting considerable capital. Yet this outward investment boom is doing little to shield the domestic economy from escalating global pressures. Japan’s fragile position in a new global order The loss of creditor status is just one sign of Japan’s broader economic fragility. Despite high overseas asset growth, the domestic economy is grappling with multiple challenges: declining consumer confidence, ageing demographics, and trade frictions that are dampening industrial momentum. According to the International Monetary Fund (IMF), Japan’s economy grew by just 1 per cent in 2024. The IMF projects Japan’s growth to slow further in 2025, with real GDP expected to expand only 0.9 per cent, a stark contrast to its regional peers. Inflation, meanwhile, has remained persistently above the Bank of Japan’s target, averaging around 3.1 per cent in 2024, driven largely by energy prices and a weaker yen, as reported by Reuters. This stagnation is compounded by global trade shifts. The return of Donald Trump to the US presidency has reignited protectionist policies, with renewed tariffs rattling key Japanese sectors. According to Reuters, Japanese automakers are already reeling from a 25 per cent US tariff on finished cars and car parts. Toyota, the country’s largest company, has projected a $1.3 billion hit to its profits for April and May alone. Nissan is reportedly considering closing two domestic plants and shifting more production to the US to bypass rising trade barriers. These developments have triggered warnings from Japanese economists and officials. The automotive industry, a cornerstone of Japan’s GDP and employment is caught in a tightening vice of tariff shocks and supply chain disruptions. Public dissatisfaction is also rising, with wage growth lagging behind inflation, squeezing household budgets. While Japan’s economy struggles, others are rising, most notably India. According to ANI, NITI Aayog CEO BVR Subrahmanyam confirmed that India has overtaken Japan to become the world’s fourth-largest economy, citing the latest International Monetary Fund data. The IMF’s April 2025 World Economic Outlook estimates India’s nominal GDP will reach $4.187 trillion, slightly surpassing Japan’s projected $4.186 trillion. This shift underscores Japan’s declining share in the global economy and highlights a regional power rebalancing in Asia. Tokyo’s ¥980 billion shield to counter Trump’s tariffs According to the New York Times, in a bid to cushion the domestic blow from rising tariffs and inflation, the Japanese government has unveiled a ¥980 billion ($6.3 billion) emergency spending package. The funds reportedly aim to subsidise energy costs for households and provide support to small and medium-sized enterprises (SMEs) struggling under new trade constraints. Cabinet Secretary Yoshimasa Hayashi announced the package earlier this week, saying it was designed to “fully support” the population during a volatile economic phase. As per Reuters, the measures are also politically timed — the Kishida administration faces an upper house election in July, and public frustration is growing over stagnant wages and higher consumer prices. Meanwhile, Japan’s efforts to negotiate tariff relief from the US have hit a wall. Tokyo’s top trade envoy, Ryosei Akazawa, met Trump administration officials in Washington last week, but talks reportedly stalled. Trump officials have signalled that Japan’s primary demand an exemption from auto tariffs is currently off the table. Hopes now rest on the upcoming G7 Summit in Canada, where informal discussions may resume. Japan’s decline in economic influence symbolised by the loss of its top creditor status and its fall behind India in GDP rankings reflects more than just statistical shifts. It signals an urgent need for economic renewal in a nation facing demographic decline, external trade pressure, and internal stagnation. The government’s recent fiscal package offers short-term relief, but structural reforms are needed to chart a more sustainable path forward. Analysts point to innovation, productivity gains, and trade diversification as key to Japan’s future competitiveness. As global economic power continues to shift and trade alliances reshape, Japan must adapt or risk fading further from the world’s economic centre stage.

Amid global trade tension, Japan has lost its position as the world's largest creditor nation for the first time in over three decades, according to data from Japan's Ministry of Finance.&nbsp;

Japan loses top creditor rank as economic troubles deepen

After three weeks of the India-Pakistan conflict, Defence Minister Rajnath Singh on Thursday (May 15) sharply criticised Pakistan and its crippling economy, saying that the line of beggars begins wherever Pakistan stands.
During a speech in Jammu and Kashmir, India's defence minister slammed Pakistan for asking money from the International Monetary Fund (IMF).&nbsp;
"What can I say about Pakistan," Rajnath Singh said. "After begging and begging, that country is in such a position that you can say that the line of beggars begins wherever Pakistan stands."
Also read: <a href="https://www.wionews.com/india-news/are-nuclear-weapons-safe-with-a-rogue-nation-like-pakistan-defence-minister-rajnath-singh-raises-doubt-9070913">Are nuclear weapons safe with a 'rogue' nation like Pakistan, questions Defence Minister Rajnath Singh</a>
This comes right after the IMF's fresh disbursement of $1.023 billion to Pakistan under the Extended Fund Facility (EFF), raising the total disbursed amount under the current programme to approximately $2.1 billion.&nbsp;
Singh continued to bash Pakistan, saying, "You must have heard, they once again went to the International Monetary Fund to ask for money, while India is among those countries that fund the IMF to help poor countries."
Also read: <a href="https://www.wionews.com/india-news/indo-pak-war-omar-abdullah-slams-imf-for-essentialy-reimbursing-pakistan-for-devastating-jk-9053772">Indo-Pak war: Omar Abdullah slams IMF for 'essentialy reimbursing' Pakistan for devastating J&amp;K</a>
The decision by the IMF to release funds came despite India raising objections to it, stating that the funds could be misused for state-sponsored cross-border terrorism. New Delhi abstained from voting at the crucial meeting just a few days after it launched <a href="https://www.wionews.com/tags/operation-sindoor">Operation Sindoor</a>.&nbsp;
India raised concerns about the efficacy of the IMF programmes regarding Pakistan and cited its poor track record. The Ministry of Finance said in a statement, "Pakistan has been a prolonged borrower from the IMF, with a very poor track record of implementation and of adherence to the IMF's program conditions."
Also read: <a href="https://www.wionews.com/india-news/defence-minister-rajanath-singh-visits-jammu-and-kashmir-for-first-time-since-operation-sindoor-9070712">Defence Minister Rajnath Singh visits Jammu and Kashmir for first time since Operation Sindoor</a>

During a speech in Jammu and Kashmir, India's defence minister slammed Pakistan for asking money from the International Monetary Fund (IMF). India news pakistan

After three weeks of the India-Pakistan conflict, Defence Minister Rajnath Singh on Thursday (May 15) sharply criticised Pakistan and its crippling economy, saying that the line of beggars begins wherever Pakistan stands. During a speech in Jammu and Kashmir, India's defence minister slammed Pakistan for asking money from the International Monetary Fund (IMF). "What can I say about Pakistan," Rajnath Singh said. "After begging and begging, that country is in such a position that you can say that the line of beggars begins wherever Pakistan stands." Also read: Are nuclear weapons safe with a 'rogue' nation like Pakistan, questions Defence Minister Rajnath Singh This comes right after the IMF's fresh disbursement of $1.023 billion to Pakistan under the Extended Fund Facility (EFF), raising the total disbursed amount under the current programme to approximately $2.1 billion. Singh continued to bash Pakistan, saying, "You must have heard, they once again went to the International Monetary Fund to ask for money, while India is among those countries that fund the IMF to help poor countries." Also read: Indo-Pak war: Omar Abdullah slams IMF for 'essentialy reimbursing' Pakistan for devastating J&K The decision by the IMF to release funds came despite India raising objections to it, stating that the funds could be misused for state-sponsored cross-border terrorism. New Delhi abstained from voting at the crucial meeting just a few days after it launched Operation Sindoor. India raised concerns about the efficacy of the IMF programmes regarding Pakistan and cited its poor track record. The Ministry of Finance said in a statement, "Pakistan has been a prolonged borrower from the IMF, with a very poor track record of implementation and of adherence to the IMF's program conditions." Also read: Defence Minister Rajnath Singh visits Jammu and Kashmir for first time since Operation Sindoor

'Line of beggars begins wherever Pakistan stands': India's defence minister slams Pak for IMF bailouts amid crippling economy

The International Monetary Fund (IMF) has recently approved a fresh $2.3 billion package for Pakistan. Out of this, $1 billion will be given immediately under the Extended Fund Facility (EFF), and $1.3 billion will come through a new Resilience and Sustainability Facility (RSF).
India chose not to vote on the package, pointing to Pakistan&rsquo;s continued support for cross-border terrorism. 
This development highlights a recurring pattern: Each time Pakistan knocks on the doors of the International Monetary Fund, it arrives with the same pitch: economic distress, low foreign exchange reserves, and inability to meet its external obligations. Each time, the IMF responds with a package, structured, conditional, but ultimately forgiving.
Also read: <a href="https://www.wionews.com/india-news/indo-pak-war-can-pakistan-use-f-16s-against-india-operation-sindoor-pakistan-drone-attack-pahalgam-terror-attack-9050088" rel="dofollow noopener" target="_blank">Indo-Pak War: Can Pakistan use F-16s against India? Here&rsquo;s what the rules say</a>
But one thing remains consistent: Pakistan&rsquo;s military budget stays high, regardless of the economic condition or foreign aid it receives.
<figure class="image"><img alt="Pakistan's IMF funding vs military spending" src="https://img-cdn.publive.online/fit-in/3200x1600/filters:format(webp)/wion/media/media_files/2025/05/12/tV8lmGOPvRCFSBG8aTjv.png" style="width: 3200px;">
<figcaption>Pakistan's IMF funding vs military spending Photograph: (WION)</figcaption>
</figure>
&nbsp;
<h2>Military budgets remain high even during bailouts</h2>
From 1999 to 2023, Pakistan received more than $22 billion in IMF disbursements. These funds were aimed at stabilising the country&rsquo;s struggling economy and addressing balance-of-payments issues.
Yet in that same period, Pakistan spent over $180 billion on its military, often five to ten times more than the IMF money it got each year.
Also read: <a href="https://www.wionews.com/india-news/how-pakistan-got-the-nuclear-bomb-india-pahalgam-terror-attack-9007958" rel="dofollow noopener" target="_blank">'Will go hungry, but get the bomb&rsquo;: How Pakistan got its first nuclear bomb? A story of desperation, fear, and rivalry with India</a>
For instance, in 1999, Pakistan received about $611 million from the IMF, while spending $3.08 billion on defence. The pattern continued year after year, more aid came in, and more was spent on the military.
<figure class="tinymce-table-div">
<table xmlns="http://www.w3.org/1999/xhtml" cellspacing="0" cellpadding="0" dir="ltr" border="1" data-sheets-root="1" data-sheets-baot="1" style="width: 697px; height: 684px;"><colgroup><col width="100" style="width: 231.667px;"><col width="100" style="width: 231.667px;"><col width="100" style="width: 231.667px;"></colgroup>
<tbody>
<tr>
<td>Year</td>
<td>IMF Funding in USD</td>
<td>
<div>
<div>Military Spending By Pakistan</div>
</div>
</td>
</tr>
<tr>
<td>1999</td>
<td>$611.6 million</td>
<td>3.08 billion</td>
</tr>
<tr>
<td>2000</td>
<td>$205.5 million</td>
<td>2.97 billion</td>
</tr>
<tr>
<td>2001</td>
<td>$505.5 million</td>
<td>2.84 billion</td>
</tr>
<tr>
<td>2002</td>
<td>$348.9 million</td>
<td>3.27 billion</td>
</tr>
<tr>
<td>2003</td>
<td>$499.6 million</td>
<td>3.72 billion</td>
</tr>
<tr>
<td>2004</td>
<td>$256.7 million</td>
<td>4.13 billion</td>
</tr>
<tr>
<td>2005</td>
<td>0</td>
<td>4.59 billion</td>
</tr>
<tr>
<td>2006</td>
<td>0</td>
<td>4.97 billion</td>
</tr>
<tr>
<td>2007</td>
<td>0</td>
<td>5.34 billion</td>
</tr>
<tr>
<td>2008</td>
<td>$3.18 billion</td>
<td>5.23 billion</td>
</tr>
<tr>
<td>2009</td>
<td>$3.30 billion</td>
<td>5.27 billion</td>
</tr>
<tr>
<td>2010</td>
<td>$1.64 billion</td>
<td>5.97 billion</td>
</tr>
<tr>
<td>2011</td>
<td>0</td>
<td>6.95 billion</td>
</tr>
<tr>
<td>2012</td>
<td>0</td>
<td>7.48 billion</td>
</tr>
<tr>
<td>2013</td>
<td>$1.09 billion</td>
<td>7.66 billion</td>
</tr>
<tr>
<td>2014</td>
<td>$2.16 billion</td>
<td>8.68 billion</td>
</tr>
<tr>
<td>2015</td>
<td>$2.03 billion</td>
<td>9.51 billion</td>
</tr>
<tr>
<td>2016</td>
<td>$1.10 billion</td>
<td>10.00 billion</td>
</tr>
<tr>
<td>2017</td>
<td>0</td>
<td>11.38 billion</td>
</tr>
<tr>
<td>2018</td>
<td>0</td>
<td>11.54 billion</td>
</tr>
<tr>
<td>2019</td>
<td>$1.44 billion</td>
<td>10.22 billion</td>
</tr>
<tr>
<td>2020</td>
<td>$1.41 billion</td>
<td>10.24 billion</td>
</tr>
<tr>
<td>2021</td>
<td>$500.5 million</td>
<td>11.65 billion</td>
</tr>
<tr>
<td>2022</td>
<td>$2.22 billion</td>
<td>10.36 billion</td>
</tr>
<tr>
<td>2023</td>
<td>$1.20 billion</td>
<td>8.52 billion</td>
</tr>
</tbody>
</table>
</figure>
<h2>Military spending through the years</h2>
Here's a comparison of some key years showing IMF bailouts versus Pakistan&rsquo;s military spending:
2008 (Global Financial Crisis)
IMF aid: $3.1 billion
Military spending: $5.23 billion
2013&ndash;2014 (Debt and Energy Crisis)
IMF aid: $2.18 billion
Military spending: $8.68 billion
2019 (Balance of Payments Crisis)
IMF aid: $1.37 billion
Military spending: $10.4 billion
2022 (Pandemic and inflation)
IMF aid: $2.18 billion
Military spending: $10.34 billion
Even as the IMF sent money to help stabilise the economy, defence budgets remained unaffected. Fuel subsidies were slashed, taxes were increased, and inflation hit record highs, but the military continued to get its share.
Also read: <a href="https://www.wionews.com/india-news/inside-india-pakistans-nuclear-arsenals-who-has-more-and-what-would-happen-if-new-delhi-islamabad-unleash-their-nukes-pahalgam-terror-attack-9007737" rel="dofollow noopener" target="_blank">Inside India, Pakistan&rsquo;s nuclear arsenals: Who has more, and what would happen if New Delhi, Islamabad unleash their nukes?</a>
<h2>In 2023, defence spending was nearly 7 times the IMF aid</h2>
In 2023, Pakistan faced a risk of default, and inflation soared above 30%. The IMF disbursed $1.2 billion. But during that same year, Pakistan&rsquo;s military budget stood at $8.52 billion, nearly seven times the aid.
In 2021, the <a href="https://www.wionews.com/tags/imf" rel="dofollow noopener" target="_blank">IMF</a> asked Pakistan to raise taxes and cut energy subsidies. Instead, the country raised its defence budget to $11.84 billion, its highest in recent memory.
IMF programmes typically come with strict conditions: Raise taxes, reduce subsidies, and cut government spending.
But Pakistan&rsquo;s military budget has remained largely outside these conditions.
<h2>A 25-year pattern with no reforms</h2>
What&rsquo;s clear is that this isn&rsquo;t a one-off case. Over the last 25 years, Pakistan has followed a consistent pattern:
IMF loans increase &rarr; Military spending increases faster
Economic crises worsen &rarr; Military budgets remain untouched
Austerity hits civilians &rarr; Defence remains protected
Pakistan&rsquo;s economic challenges are routinely treated as external issues of bad debt, weak exports, etc. But they are deeply political. The military&rsquo;s dominance of national resources takes precedence over civilian priorities like education, healthcare, and development.
The numbers show this isn&rsquo;t just a question of prioritisation but it's how Pakistan governs.

India news: From 1999 to 2023, Pakistan received more than $22 billion in IMF disbursements. These funds were aimed at stabilising the country’s struggling economy and addressing balance-of-payments issues.

The International Monetary Fund (IMF) has recently approved a fresh $2.3 billion package for Pakistan. Out of this, $1 billion will be given immediately under the Extended Fund Facility (EFF), and $1.3 billion will come through a new Resilience and Sustainability Facility (RSF). India chose not to vote on the package, pointing to Pakistan’s continued support for cross-border terrorism. This development highlights a recurring pattern: Each time Pakistan knocks on the doors of the International Monetary Fund, it arrives with the same pitch: economic distress, low foreign exchange reserves, and inability to meet its external obligations. Each time, the IMF responds with a package, structured, conditional, but ultimately forgiving. Also read: Indo-Pak War: Can Pakistan use F-16s against India? Here’s what the rules say But one thing remains consistent: Pakistan’s military budget stays high, regardless of the economic condition or foreign aid it receives. Pakistan's IMF funding vs military spending Photograph: (WION) Military budgets remain high even during bailouts From 1999 to 2023, Pakistan received more than $22 billion in IMF disbursements. These funds were aimed at stabilising the country’s struggling economy and addressing balance-of-payments issues. Yet in that same period, Pakistan spent over $180 billion on its military, often five to ten times more than the IMF money it got each year. Also read: 'Will go hungry, but get the bomb’: How Pakistan got its first nuclear bomb? A story of desperation, fear, and rivalry with India For instance, in 1999, Pakistan received about $611 million from the IMF, while spending $3.08 billion on defence. The pattern continued year after year, more aid came in, and more was spent on the military. Year IMF Funding in USD Military Spending By Pakistan 1999 $611.6 million 3.08 billion 2000 $205.5 million 2.97 billion 2001 $505.5 million 2.84 billion 2002 $348.9 million 3.27 billion 2003 $499.6 million 3.72 billion 2004 $256.7 million 4.13 billion 2005 0 4.59 billion 2006 0 4.97 billion 2007 0 5.34 billion 2008 $3.18 billion 5.23 billion 2009 $3.30 billion 5.27 billion 2010 $1.64 billion 5.97 billion 2011 0 6.95 billion 2012 0 7.48 billion 2013 $1.09 billion 7.66 billion 2014 $2.16 billion 8.68 billion 2015 $2.03 billion 9.51 billion 2016 $1.10 billion 10.00 billion 2017 0 11.38 billion 2018 0 11.54 billion 2019 $1.44 billion 10.22 billion 2020 $1.41 billion 10.24 billion 2021 $500.5 million 11.65 billion 2022 $2.22 billion 10.36 billion 2023 $1.20 billion 8.52 billion Military spending through the years Here's a comparison of some key years showing IMF bailouts versus Pakistan’s military spending: 2008 (Global Financial Crisis) IMF aid: $3.1 billion Military spending: $5.23 billion 2013–2014 (Debt and Energy Crisis) IMF aid: $2.18 billion Military spending: $8.68 billion 2019 (Balance of Payments Crisis) IMF aid: $1.37 billion Military spending: $10.4 billion 2022 (Pandemic and inflation) IMF aid: $2.18 billion Military spending: $10.34 billion Even as the IMF sent money to help stabilise the economy, defence budgets remained unaffected. Fuel subsidies were slashed, taxes were increased, and inflation hit record highs, but the military continued to get its share. Also read: Inside India, Pakistan’s nuclear arsenals: Who has more, and what would happen if New Delhi, Islamabad unleash their nukes? In 2023, defence spending was nearly 7 times the IMF aid In 2023, Pakistan faced a risk of default, and inflation soared above 30%. The IMF disbursed $1.2 billion. But during that same year, Pakistan’s military budget stood at $8.52 billion, nearly seven times the aid. In 2021, the IMF asked Pakistan to raise taxes and cut energy subsidies. Instead, the country raised its defence budget to $11.84 billion, its highest in recent memory. IMF programmes typically come with strict conditions: Raise taxes, reduce subsidies, and cut government spending. But Pakistan’s military budget has remained largely outside these conditions. A 25-year pattern with no reforms What’s clear is that this isn’t a one-off case. Over the last 25 years, Pakistan has followed a consistent pattern: IMF loans increase → Military spending increases faster Economic crises worsen → Military budgets remain untouched Austerity hits civilians → Defence remains protected Pakistan’s economic challenges are routinely treated as external issues of bad debt, weak exports, etc. But they are deeply political. The military’s dominance of national resources takes precedence over civilian priorities like education, healthcare, and development. The numbers show this isn’t just a question of prioritisation but it's how Pakistan governs.

WION DataLabs: Pakistan got $22 billion from the IMF in 25 years, but spent $185 billion on its military

On 9 May 2025, the IMF Executive Board approved an immediate disbursement of $1 billion (approx. Rs 8,500 crore) to Pakistan. This brings Pakistan’s total receipts under its current Extended Fund Facility (EFF) to $2.1 billion. 

Pakistan, Argentina and more: Top 10 countries with the highest IMF debt as of 2025

Pakistan's economy struggles to bear the cost of conflict, with air operations alone costing over $1 billion per month. Drone usage adds another $450 million to the bill. Can Pakistan sustain a war, relying heavily on IMF bailouts?

India-Pakistan conflict: Islamabad powerless to bear economic brunt of sustained war

India raised objections over the poor track record of Pakistan and on the possibility of it misusing debt financing funds for state-sponsored cross-border terrorism at the International Monetary Fund (IMF) meeting on Friday on the bailout package for Islamabad, while questioning the efficacy of IMF programmes in the case of Pakistan. Raising its objections, India abstained from voting to mark its dissent.
The IMF reviewed the Extended Fund Facility (EFF) lending programme ($1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending programme ($1.3 billion) for Pakistan, where India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values.
As an active and responsible member country, India raised concerns over the efficacy of IMF programmes in the case of a bailout package for Pakistan, given its poor track record.
Also Read |&nbsp;<a href="https://www.wionews.com/pakistan/where-is-jaish-e-mohammed-chief-masood-azhar-is-he-hiding-in-an-isi-safehouse-9052122" rel="noopener" target="_blank">Where is Jaish-e-Mohammed chief Masood Azhar? Is he hiding in an ISI safehouse?</a> India pointed out that Pakistan has been a borrower from the IMF since 1989, with a very poor track record of implementation and of adherence to its programme conditions. It added that Pakistan would not have approached the IMF for yet another bailout if it had implemented the previous programmes properly. Besides, the extensive role of the Pakistani military in economic affairs also raises serious questions, as the army continues to play an outsized role in politics and the economy even when a civilian government is in power.&nbsp;
Also Read |&nbsp;<a href="https://www.wionews.com/india-news/pakistan-fired-300-400-drones-last-night-to-target-indias-military-installation-govt-9052477" target="_blank" rel="noopener">Pakistan fired 300-400 drones last night to target India&rsquo;s military installation: Govt</a> &ldquo;In fact, a 2021 UN report described military-linked businesses as the &lsquo;largest conglomerate in Pakistan&rsquo;. The situation has not changed for the better; rather the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan,&rdquo; New Delhi said in a statement.&nbsp; India also flagged the Pakistan chapter of the IMF Report on Evaluation of Prolonged Use of IMF Resources, which noted that there was a widespread perception that political considerations play an important role in the IMF lending to Pakistan.&nbsp;
Also Read |&nbsp;<a href="https://www.wionews.com/india-news/indo-pak-war-indian-envoy-to-us-schools-cnn-anchor-over-remarks-on-jammu-and-kashmir-operation-sindoor-9051643" rel="noopener" target="_blank">Indo-Pak war: Indian envoy to US schools CNN anchor over remarks on Jammu and Kashmir</a> Moreover, Pakistan&rsquo;s debt burden is very high as a result of repeated bailouts, making it a too-big-to-fail debtor for the IMF. There is a serious gap highlighting the urgent need to ensure that moral values are given appropriate consideration in the procedures followed by global financial institutions, India added.
<h2>Decision-making and voting procedure at IMF</h2>
The IMF Executive Board consists of 25 directors who represent member countries or groups of countries. It handles daily operational matters, including loan approvals. Unlike in the United Nations, where each country has one vote, IMF voting power reflects the economic size of each member. For instance, a big economy like the United States holds a disproportionately high voting share. To simplify things, the IMF typically makes decisions by consensus. &nbsp; In cases where a vote is required, the system does not allow a formal &lsquo;no&rsquo; vote. Directors can either vote in favour or abstain. There is no provision to vote against a loan or proposal, hence India abstained after registering protest.
<h2>IMF approves USD 1 billion loan for Pakistan</h2>
After the voting, the IMF approved the immediate disbursement of about USD 1 billion to Pakistan under the ongoing Extended Fund Faci&shy;li&shy;ty, saying its economic situation has improved, as per a statement from the Pakistion PMO.
Pakistan had secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
 
&nbsp;

World | Business & Economy | India News : India pointed out that Pakistan has been a borrower from the IMF since 1989, with a very poor track record of implementation and of adherence to its programme conditions.

India raised objections over the poor track record of Pakistan and on the possibility of it misusing debt financing funds for state-sponsored cross-border terrorism at the International Monetary Fund (IMF) meeting on Friday on the bailout package for Islamabad, while questioning the efficacy of IMF programmes in the case of Pakistan. Raising its objections, India abstained from voting to mark its dissent. The IMF reviewed the Extended Fund Facility (EFF) lending programme ($1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending programme ($1.3 billion) for Pakistan, where India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values. As an active and responsible member country, India raised concerns over the efficacy of IMF programmes in the case of a bailout package for Pakistan, given its poor track record. Also Read | Where is Jaish-e-Mohammed chief Masood Azhar? Is he hiding in an ISI safehouse? India pointed out that Pakistan has been a borrower from the IMF since 1989, with a very poor track record of implementation and of adherence to its programme conditions. It added that Pakistan would not have approached the IMF for yet another bailout if it had implemented the previous programmes properly. Besides, the extensive role of the Pakistani military in economic affairs also raises serious questions, as the army continues to play an outsized role in politics and the economy even when a civilian government is in power. Also Read | Pakistan fired 300-400 drones last night to target India’s military installation: Govt “In fact, a 2021 UN report described military-linked businesses as the ‘largest conglomerate in Pakistan’. The situation has not changed for the better; rather the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan,” New Delhi said in a statement. India also flagged the Pakistan chapter of the IMF Report on Evaluation of Prolonged Use of IMF Resources, which noted that there was a widespread perception that political considerations play an important role in the IMF lending to Pakistan. Also Read | Indo-Pak war: Indian envoy to US schools CNN anchor over remarks on Jammu and Kashmir Moreover, Pakistan’s debt burden is very high as a result of repeated bailouts, making it a too-big-to-fail debtor for the IMF. There is a serious gap highlighting the urgent need to ensure that moral values are given appropriate consideration in the procedures followed by global financial institutions, India added. Decision-making and voting procedure at IMF The IMF Executive Board consists of 25 directors who represent member countries or groups of countries. It handles daily operational matters, including loan approvals. Unlike in the United Nations, where each country has one vote, IMF voting power reflects the economic size of each member. For instance, a big economy like the United States holds a disproportionately high voting share. To simplify things, the IMF typically makes decisions by consensus. In cases where a vote is required, the system does not allow a formal ‘no’ vote. Directors can either vote in favour or abstain. There is no provision to vote against a loan or proposal, hence India abstained after registering protest. IMF approves USD 1 billion loan for Pakistan After the voting, the IMF approved the immediate disbursement of about USD 1 billion to Pakistan under the ongoing Extended Fund Facility, saying its economic situation has improved, as per a statement from the Pakistion PMO. Pakistan had secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.

India abstains from voting on IMF’s bailout package for Pak, cites its ‘poor track record’

<div class="x_elementToProof" data-olk-copy-source="MessageBody">As India and Pakistan teeter on the edge of another diplomatic standoff after the April 22 terror attack in Pahalgam, a stark economic warning has emerged from global ratings agency Moody&rsquo;s. Released on May 5, the Moody's report outlines how the latest escalation could unravel Pakistan&rsquo;s fragile path to recovery, derail its fiscal reforms, and push it back toward financial instability.</div>
<h2 class="x_elementToProof">Moody&rsquo;s stern warning to Pakistan&rsquo;s economy</h2>
<div class="x_elementToProof">In its latest assessment, Moody's stated that &ldquo;a sustained escalation in tensions with India would likely weigh on Pakistan&rsquo;s growth and hamper the government&rsquo;s ongoing fiscal consolidation.&rdquo; The global rating agency warned that prolonged geopolitical stress could &ldquo;impair Pakistan&rsquo;s access to external financing and pressure its foreign-exchange reserves, which remain well below what is required to meet its external debt payment needs.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Pakistan&rsquo;s foreign exchange reserves currently stand at just over $15 billion, a fraction of India&rsquo;s $688 billion, raising red flags about its ability to service debt in the near future.</div>
<h2 class="x_elementToProof">What about India?</h2>
<div class="x_elementToProof">In contrast, Moody&rsquo;s noted that India&rsquo;s economic exposure to Pakistan is negligible, with less than 0.5% of its total exports heading to the neighboring country in 2024. As such, the agency does &ldquo;not expect major disruptions to India&rsquo;s economic activity&rdquo;, even in the case of sustained tensions.</div>
<div class="x_elementToProof">However, there could be a fiscal cost to India, Moody&rsquo;s acknowledged, noting that &ldquo;higher defence spending would potentially weigh on India&rsquo;s fiscal strength and slow its fiscal consolidation.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">India&rsquo;s macroeconomic stability, bolstered by robust public investment and private consumption, remains intact for now, but prolonged tensions could still put pressure on its fiscal targets.</div>
<h2 class="x_elementToProof">IMF reviews Pakistan&rsquo;s growth prospects</h2>
<div class="x_elementToProof">Pakistan is already walking a tightrope with the International Monetary Fund (IMF), and Moody&rsquo;s fears the latest developments may derail progress on its reform agenda. The IMF&rsquo;s executive board is scheduled to meet on May 9 to review the country&rsquo;s performance under the ongoing $7 billion Extended Fund Facility.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">In April, IMF staff reached a staff-level agreement with Pakistan for a $1.3 billion climate resilience loan spanning 28 months. If approved, it will bring total disbursements to $2 billion, including $1 billion under the existing bailout programme. But any instability or deviation from reform commitments could stall this funding pipeline.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to the IMF, &ldquo;Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment.&rdquo; Finance Minister Muhammad Aurangzeb has assured the IMF that Islamabad remains committed to reforms, but that commitment may be tested as political and security tensions rise.</div>
<h2 class="x_elementToProof">Pakistan&rsquo;s economic turmoil: A fragile recovery</h2>
<div class="x_elementToProof">Once considered one of South Asia&rsquo;s most promising economies, Pakistan is still grappling with the aftershocks of its worst financial crisis in decades. In the aftermath of the COVID-19 pandemic, a combination of poor governance, soaring inflation, and mounting debt brought the country to the brink of sovereign default in 2023. According to data from the State Bank of Pakistan and IMF country reports, inflation surged to a record 38.5 per cent in May 2023, while interest rates climbed to 22 per cent among the highest in the region. Foreign exchange reserves plummeted to just $3.7 billion, barely enough to cover a few weeks of essential imports. Meanwhile, the debt-to-GDP ratio hovered dangerously around 70 per cent, and between 40 to 50 per cent of the federal government&rsquo;s revenues were being consumed solely by interest payments.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">For nearly five years, Pakistan remained on the Financial Action Task Force (FATF) grey list, which significantly constrained its access to international financial markets. It narrowly escaped default in mid-2023 after securing a $3 billion Stand-By Arrangement from the International Monetary Fund, along with emergency financial assistance from Saudi Arabia, the United Arab Emirates, and China.</div>
<h2 class="x_elementToProof">Post-Pahalgam terror attack: KSE crash, India response</h2>
<div class="x_elementToProof">Investor confidence has taken a sharp hit since the Pahalgam attack. Between April 23 and May 5, the KSE-100 index has plunged by over 8,400 points, as traders brace for potential military escalation and further economic fallout. The sustained market meltdown reflects deepening anxiety over the Indo-Pak tensions, particularly amid fears that the crisis could derail Pakistan&rsquo;s fragile economic recovery and jeopardize its upcoming IMF review.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The April 22 attack, allegedly carried out by Pakistan-backed militants, killed 26 civilians in Jammu and Kashmir. In response, India suspended the Indus Waters Treaty, halted trade via the Attari border, slashed diplomatic ties, and granted the military full autonomy to retaliate. Pakistan responded by suspending the 1972 Simla Agreement, banning Indian flights from its airspace, and terminating remaining trade links.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Moody&rsquo;s geopolitical risk assessment emphasizes that flare-ups between India and Pakistan are not unusual, but warns that this time the stakes are dangerously high. While a full-blown war remains unlikely, even a localized conflict could derail Pakistan&rsquo;s tentative recovery and send its economy spiraling once again.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">With the IMF&rsquo;s critical review just days away, Islamabad faces a dual challenge: navigating rising external pressures while staying the course on deep economic reforms. The world is watching, and for Pakistan, the cost of miscalculation could be economically catastrophic.</div>

Business & Economy: Pakistan's fragile economic recovery faces risks from heightened tensions with India, warns Moody's recent analysis which was Released on May 05.

As India and Pakistan teeter on the edge of another diplomatic standoff after the April 22 terror attack in Pahalgam, a stark economic warning has emerged from global ratings agency Moody’s. Released on May 5, the Moody's report outlines how the latest escalation could unravel Pakistan’s fragile path to recovery, derail its fiscal reforms, and push it back toward financial instability. Moody’s stern warning to Pakistan’s economy In its latest assessment, Moody's stated that “a sustained escalation in tensions with India would likely weigh on Pakistan’s growth and hamper the government’s ongoing fiscal consolidation.” The global rating agency warned that prolonged geopolitical stress could “impair Pakistan’s access to external financing and pressure its foreign-exchange reserves, which remain well below what is required to meet its external debt payment needs.” Pakistan’s foreign exchange reserves currently stand at just over $15 billion, a fraction of India’s $688 billion, raising red flags about its ability to service debt in the near future. What about India? In contrast, Moody’s noted that India’s economic exposure to Pakistan is negligible, with less than 0.5% of its total exports heading to the neighboring country in 2024. As such, the agency does “not expect major disruptions to India’s economic activity”, even in the case of sustained tensions. However, there could be a fiscal cost to India, Moody’s acknowledged, noting that “higher defence spending would potentially weigh on India’s fiscal strength and slow its fiscal consolidation.” India’s macroeconomic stability, bolstered by robust public investment and private consumption, remains intact for now, but prolonged tensions could still put pressure on its fiscal targets. IMF reviews Pakistan’s growth prospects Pakistan is already walking a tightrope with the International Monetary Fund (IMF), and Moody’s fears the latest developments may derail progress on its reform agenda. The IMF’s executive board is scheduled to meet on May 9 to review the country’s performance under the ongoing $7 billion Extended Fund Facility. In April, IMF staff reached a staff-level agreement with Pakistan for a $1.3 billion climate resilience loan spanning 28 months. If approved, it will bring total disbursements to $2 billion, including $1 billion under the existing bailout programme. But any instability or deviation from reform commitments could stall this funding pipeline. According to the IMF, “Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment.” Finance Minister Muhammad Aurangzeb has assured the IMF that Islamabad remains committed to reforms, but that commitment may be tested as political and security tensions rise. Pakistan’s economic turmoil: A fragile recovery Once considered one of South Asia’s most promising economies, Pakistan is still grappling with the aftershocks of its worst financial crisis in decades. In the aftermath of the COVID-19 pandemic, a combination of poor governance, soaring inflation, and mounting debt brought the country to the brink of sovereign default in 2023. According to data from the State Bank of Pakistan and IMF country reports, inflation surged to a record 38.5 per cent in May 2023, while interest rates climbed to 22 per cent among the highest in the region. Foreign exchange reserves plummeted to just $3.7 billion, barely enough to cover a few weeks of essential imports. Meanwhile, the debt-to-GDP ratio hovered dangerously around 70 per cent, and between 40 to 50 per cent of the federal government’s revenues were being consumed solely by interest payments. For nearly five years, Pakistan remained on the Financial Action Task Force (FATF) grey list, which significantly constrained its access to international financial markets. It narrowly escaped default in mid-2023 after securing a $3 billion Stand-By Arrangement from the International Monetary Fund, along with emergency financial assistance from Saudi Arabia, the United Arab Emirates, and China. Post-Pahalgam terror attack: KSE crash, India response Investor confidence has taken a sharp hit since the Pahalgam attack. Between April 23 and May 5, the KSE-100 index has plunged by over 8,400 points, as traders brace for potential military escalation and further economic fallout. The sustained market meltdown reflects deepening anxiety over the Indo-Pak tensions, particularly amid fears that the crisis could derail Pakistan’s fragile economic recovery and jeopardize its upcoming IMF review. The April 22 attack, allegedly carried out by Pakistan-backed militants, killed 26 civilians in Jammu and Kashmir. In response, India suspended the Indus Waters Treaty, halted trade via the Attari border, slashed diplomatic ties, and granted the military full autonomy to retaliate. Pakistan responded by suspending the 1972 Simla Agreement, banning Indian flights from its airspace, and terminating remaining trade links. Moody’s geopolitical risk assessment emphasizes that flare-ups between India and Pakistan are not unusual, but warns that this time the stakes are dangerously high. While a full-blown war remains unlikely, even a localized conflict could derail Pakistan’s tentative recovery and send its economy spiraling once again. With the IMF’s critical review just days away, Islamabad faces a dual challenge: navigating rising external pressures while staying the course on deep economic reforms. The world is watching, and for Pakistan, the cost of miscalculation could be economically catastrophic.

Moody’s report flags economic fallout for Pakistan amid escalating tensions with India

As tensions between India and Pakistan have been escalating after the <a href="https://www.wionews.com/india-news/pahalgam-attack-houses-of-3-active-terrorists-demolished-in-south-kashmir-counter-terror-operations-underway-9003047">Pahalgam terror attack</a>, India now might oppose to $1.3 billion International Monetary Fund (IMF) loan to debt-ridden Pakistan in the upcoming board meeting.&nbsp;
While opposing Pakistan's loan package during the meeting, India will cite Pakistan's "support to terrorism" as the reason.&nbsp;
"There is a view that supports to terror by the neighbouring nation be flagged at the board meeting when the loan is taken up," Economic Times reported citing a familiar source.&nbsp;
Also read: <a href="https://www.wionews.com/pakistan/pahalgam-terror-attack-pakistan-minister-claims-india-planning-military-strike-within-next-24-to-36-hours-9017756">Pahalgam terror attack: Pakistan minister claims India planning 'military strike within next 24 to 36 hours'</a>
The global lender IMF is set to review a proposed $1.3 billion loan for Pakistan on May 9 as part of its climate resilience program.&nbsp;
Moreover, the IMF board will also assess Pakistan's progress on policy commitments tied to the existing $7 billion bailout package.&nbsp;
Earlier in the last meeting, India had abstained from voting on Pakistan's bailout package. However, this time, India is planning to vote "against" the loan package to Pakistan, stressing that it misuses the funds given by the IMF.&nbsp;
Also read: <a href="https://www.wionews.com/pakistan/man-claims-he-captured-pahalgam-terrorists-on-video-while-making-reel-submits-footage-to-nia-9017898">Man claims he captured Pahalgam terrorists on video while making reel, submits footage to NIA</a>
Last year, Pakistan secured the $7 billion Extended Fund Facility to get itself out of the economic crisis. However, it will be disbursed in installments. The IMF disbursed $1 billion immediately to Islamabad at that time.&nbsp;
Now, if it gets cleared and approved by the IMF board, it could unlock another tranche of funding for cash-strapped Pakistan.&nbsp;
On Wednesday, Indian Prime Minister Narendra Modi gave "complete operational freedom" to the Armed Forces to respond to Pakistan in the wake of the Pahalgam terror attack, that claimed the lives of at least 27 people.&nbsp;
Moreover, earlier today, PM Modi chaired key Cabinet Committee on Political Affairs and Cabinet Committee on Security meetings.&nbsp;
The Cabinet Committee on Security (CCS), chaired by PM Modi, has reviewed the overall security situation in Jammu and Kashmir amid speculation about India's potential response to the Pahalgam terrorist attack.&nbsp;
WATCH | <a href="https://www.wionews.com/videos/pahalgam-terror-attack-general-asim-munirs-reckless-gambit-pushing-pakistan-to-war-9017022">Pahalgam terror attack: General Asim Munir's reckless gambit pushing Pakistan to war</a>

Earlier, India had abstained from voting on Pakistan's bailout package. However, this time, India is planning to vote "against" the loan package. India news pakistan

As tensions between India and Pakistan have been escalating after the Pahalgam terror attack, India now might oppose to $1.3 billion International Monetary Fund (IMF) loan to debt-ridden Pakistan in the upcoming board meeting. While opposing Pakistan's loan package during the meeting, India will cite Pakistan's "support to terrorism" as the reason. "There is a view that supports to terror by the neighbouring nation be flagged at the board meeting when the loan is taken up," Economic Times reported citing a familiar source. Also read: Pahalgam terror attack: Pakistan minister claims India planning 'military strike within next 24 to 36 hours' The global lender IMF is set to review a proposed $1.3 billion loan for Pakistan on May 9 as part of its climate resilience program. Moreover, the IMF board will also assess Pakistan's progress on policy commitments tied to the existing $7 billion bailout package. Earlier in the last meeting, India had abstained from voting on Pakistan's bailout package. However, this time, India is planning to vote "against" the loan package to Pakistan, stressing that it misuses the funds given by the IMF. Also read: Man claims he captured Pahalgam terrorists on video while making reel, submits footage to NIA Last year, Pakistan secured the $7 billion Extended Fund Facility to get itself out of the economic crisis. However, it will be disbursed in installments. The IMF disbursed $1 billion immediately to Islamabad at that time. Now, if it gets cleared and approved by the IMF board, it could unlock another tranche of funding for cash-strapped Pakistan. On Wednesday, Indian Prime Minister Narendra Modi gave "complete operational freedom" to the Armed Forces to respond to Pakistan in the wake of the Pahalgam terror attack, that claimed the lives of at least 27 people. Moreover, earlier today, PM Modi chaired key Cabinet Committee on Political Affairs and Cabinet Committee on Security meetings. The Cabinet Committee on Security (CCS), chaired by PM Modi, has reviewed the overall security situation in Jammu and Kashmir amid speculation about India's potential response to the Pahalgam terrorist attack. WATCH | Pahalgam terror attack: General Asim Munir's reckless gambit pushing Pakistan to war

'Support to terror': India might vote 'against' IMF loan to Pakistan in wake of Pahalgam attack

According to the International Monetary Fund’s (IMF) latest World Economic Outlook, India, currently the world’s fifth-largest economy, is set to register impressive nominal GDP growth in 2025. 

Where is India? Check out the top 10 largest economies of the world in 2025

The International Monetary Fund has sharply lowered its global growth and trade forecasts in its latest world economic outlook, citing escalating trade tensions and policy uncertainty.

IMF Cuts India’s Growth Forecast To 6.2%

The financial circus rolls into Washington this week for the IMF's spring meetings, and the ringmasters are walking a precarious tightrope. Tariffs take centre stage, of course. But what can be done about them? And what does it mean for the global economy?<o:p></o:p>
As the Trump administration tries to negotiate with its trade partners, finance ministers from all over the globe will gather in Washington, D.C., this week for the spring meetings of the International Monetary Fund and the World Bank.<o:p></o:p>
However, the dimming global economic outlook will cast a shadow over any bilateral negotiations. No matter how many tariffs the U.S. imposes, the bleak global picture will affect US trading partners.<o:p></o:p>
New economic predictions and polls will indicate the initial impact three weeks after Trump officially initiated a trade war with the whole world. Many countries will be indirectly hit if us tariffs substantially weaken the economic prospects of their trading partners.<o:p></o:p>
<h2 class="MsoNormal">Uncertainty about trade policy soars<o:p></o:p></h2>
For example, say you're Japan, one of the nations the Trump administration has prioritised in its negotiations. Its two biggest export markets are China and the US, followed by South Korea, Hong Kong, Thailand, Vietnam and Mexico.<o:p></o:p>
In 2023, Japan exported slightly more to those last five combined than to the US. Japanese exporters would, of course, prefer lower US tariffs.<o:p></o:p>
But high tariffs on China, Vietnam, Mexico, and attendant dents in those economies could hurt Japan, too. All of this means that even countries optimistic about securing a trade deal with the US will be keeping an eye on the global outlook.<o:p></o:p>
In other words, in a tightly knit global economy, even bilateral trade fights can have ripple effects. Expectations for global economic growth are souring since Trump's April 2 "Liberation Day" announcement.<o:p></o:p>
A Bank of America survey shows 82 per cent of investors expect the global economy to weaken. Goldman Sachs now expects year-over-year global GDP growth of just 1.4 per cent in the current quarter, less than half of the 3 per cent growth at the end of last year.<o:p></o:p>
The IMF is set to slash its own growth forecasts when it publishes its World Economic Outlook later on Tuesday. IMF's managing director Kristalina Georgieva said, "Our new growth projections will include notable markdowns but not recession."<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: As the Trump administration tries to negotiate with its trade partners, finance ministers from all over the globe will gather in Washington, D.C., this week for the spring meetings of the IMF and the World Bank.

The financial circus rolls into Washington this week for the IMF's spring meetings, and the ringmasters are walking a precarious tightrope. Tariffs take centre stage, of course. But what can be done about them? And what does it mean for the global economy? As the Trump administration tries to negotiate with its trade partners, finance ministers from all over the globe will gather in Washington, D.C., this week for the spring meetings of the International Monetary Fund and the World Bank. However, the dimming global economic outlook will cast a shadow over any bilateral negotiations. No matter how many tariffs the U.S. imposes, the bleak global picture will affect US trading partners. New economic predictions and polls will indicate the initial impact three weeks after Trump officially initiated a trade war with the whole world. Many countries will be indirectly hit if us tariffs substantially weaken the economic prospects of their trading partners. Uncertainty about trade policy soars For example, say you're Japan, one of the nations the Trump administration has prioritised in its negotiations. Its two biggest export markets are China and the US, followed by South Korea, Hong Kong, Thailand, Vietnam and Mexico. In 2023, Japan exported slightly more to those last five combined than to the US. Japanese exporters would, of course, prefer lower US tariffs. But high tariffs on China, Vietnam, Mexico, and attendant dents in those economies could hurt Japan, too. All of this means that even countries optimistic about securing a trade deal with the US will be keeping an eye on the global outlook. In other words, in a tightly knit global economy, even bilateral trade fights can have ripple effects. Expectations for global economic growth are souring since Trump's April 2 "Liberation Day" announcement. A Bank of America survey shows 82 per cent of investors expect the global economy to weaken. Goldman Sachs now expects year-over-year global GDP growth of just 1.4 per cent in the current quarter, less than half of the 3 per cent growth at the end of last year. The IMF is set to slash its own growth forecasts when it publishes its World Economic Outlook later on Tuesday. IMF's managing director Kristalina Georgieva said, "Our new growth projections will include notable markdowns but not recession." (With inputs from the agencies)

Tariffs hit global growth outlook

Fitch Ratings has upgraded Pakistan’s credit rating, marking the first upgrade in nearly six years. The decision reflects stronger fiscal management and improved external stability. With this upgrade, the outlook has been revised to stable for the first time since 2018.

Fitch upgrades Pakistan's rating to 'B-', first in 6 years

Argentina's peso slid 10% on Monday to near 1,200 per dollar after the country undid large parts of its currency and capital controls at the end of last week, part of sealing a $20 billion loan program with the International Monetary Fund.

Argentina peso tumbles after IMF bailout

Pakistan is planning to legalise cryptocurrency trading, to further attract international investment and integrate blockchain technology into its economy, newly appointed CEO of Pakistan Crypto Council Bilal bin Saqib said.&nbsp;
This comes at a crucial time when the country's economy is dealing with massive debt.
&ldquo;The country aims to devise a clear regulatory framework for governing digital-asset activities to boost the local ecosystem," Saqib told Bloomberg TV in an interview.
Stressing that Pakistan is no longer standing idly by, Saqib said, "We hope to attract international investment because Pakistan is a low-cost, high-growth market with 60% of the population under 30 years old."
Also read: <a href="https://www.wionews.com/south-asia/pakistans-tallest-man-naseer-soomro-dies-after-prolonged-illness-8868282">Who was Naseer Soomro? Pakistan&rsquo;s tallest man dies after prolonged illness</a>
He added that we have a local workforce ready to build Web3.&nbsp;
Following the US president's footsteps, Saqib said, "Trump is making cryptocurrency a national priority, and every country, including Pakistan, will have to follow suit."
Pakistan's central bank has been warning against cryptocurrency for years now, citing concerns over fraud and money laundering.&nbsp;
However, Saqib highlighted that with Pakistan ranking ninth globally in crypto adoption, it has become clear that the demand for digital assets is too large to ignore.
Also read: <a href="https://www.wionews.com/india-news/instead-of-spreading-lies-vacate-our-territory-india-blasts-pakistan-for-its-remarks-on-jammu-and-kashmir-8866539">&lsquo;Instead of spreading lies, vacate our territory&rsquo;: India blasts Pakistan for its remarks on Jammu and Kashmir</a>
Currently, millions of crypto users are already active in the country, Saqib said, adding that this move could position Pakistan as a rising player in the global blockchain and Web3 ecosystem.&nbsp;
<h2>Why Pakistan wants to legalise crypto trading</h2>
Several factors led to the country's decision to make such a major shift in policy towards crypto legalisation, Saqib stressed.
An estimated 15-20 million Pakistanis are already trading digital assets, highlighting significant local adoption.
Additionally, global trends, with countries like the US and UAE embracing crypto-friendly policies, put pressure on Pakistan to stay competitive and avoid being left behind.
Moreover, there is a potential for economic growth, as a regulated crypto sector could attract foreign investment and foster technological innovation.&nbsp;
Also read: <a href="https://www.wionews.com/business-economy/pakistans-7-billion-imf-bailout-review-due-8760117">Pakistan's $7 billion IMF bailout review due</a>
<h2>Pakistan's debt-ridden situation</h2>
Pakistan is indebted with more than 20 loans which it took from the International Monetary Fund (IMF) since 1958, with the latest being approved in September 2024 for $7 billion.&nbsp;
The country stands as the fifth-largest debtor to the IMF. During its approval, Pakistan assured the global lending organisation, that it would be its last loan.&nbsp;
Also read: <a href="https://www.wionews.com/business-economy/imfs-global-economic-outlook-global-growth-to-reach-33-in-2025-8631520">IMF's global economic outlook: Global growth to reach 3.3% in 2025</a>
(With inputs from agencies)

Pakistan, south asia: Pakistan's central bank has been warning against cryptocurrency for years now, citing concerns over fraud and money laundering.

Pakistan is planning to legalise cryptocurrency trading, to further attract international investment and integrate blockchain technology into its economy, newly appointed CEO of Pakistan Crypto Council Bilal bin Saqib said. This comes at a crucial time when the country's economy is dealing with massive debt. “The country aims to devise a clear regulatory framework for governing digital-asset activities to boost the local ecosystem," Saqib told Bloomberg TV in an interview. Stressing that Pakistan is no longer standing idly by, Saqib said, "We hope to attract international investment because Pakistan is a low-cost, high-growth market with 60% of the population under 30 years old." Also read: Who was Naseer Soomro? Pakistan’s tallest man dies after prolonged illness He added that we have a local workforce ready to build Web3. Following the US president's footsteps, Saqib said, "Trump is making cryptocurrency a national priority, and every country, including Pakistan, will have to follow suit." Pakistan's central bank has been warning against cryptocurrency for years now, citing concerns over fraud and money laundering. However, Saqib highlighted that with Pakistan ranking ninth globally in crypto adoption, it has become clear that the demand for digital assets is too large to ignore. Also read: ‘Instead of spreading lies, vacate our territory’: India blasts Pakistan for its remarks on Jammu and Kashmir Currently, millions of crypto users are already active in the country, Saqib said, adding that this move could position Pakistan as a rising player in the global blockchain and Web3 ecosystem. Why Pakistan wants to legalise crypto trading Several factors led to the country's decision to make such a major shift in policy towards crypto legalisation, Saqib stressed. An estimated 15-20 million Pakistanis are already trading digital assets, highlighting significant local adoption. Additionally, global trends, with countries like the US and UAE embracing crypto-friendly policies, put pressure on Pakistan to stay competitive and avoid being left behind. Moreover, there is a potential for economic growth, as a regulated crypto sector could attract foreign investment and foster technological innovation. Also read: Pakistan's $7 billion IMF bailout review due Pakistan's debt-ridden situation Pakistan is indebted with more than 20 loans which it took from the International Monetary Fund (IMF) since 1958, with the latest being approved in September 2024 for $7 billion. The country stands as the fifth-largest debtor to the IMF. During its approval, Pakistan assured the global lending organisation, that it would be its last loan. Also read: IMF's global economic outlook: Global growth to reach 3.3% in 2025 (With inputs from agencies)

Heavily indebted Pakistan seeks to legalise cryptocurrency to attract global investment

Pakistan's finance minister Muhammad Aurangzeb said an IMF delegation will visit the country next week. The first assessment of the $7 billion rescue package is scheduled for March. Last summer, as part of its economic recovery strategy, Islamabad received a $7 billion loan from the IMF. According to Pakistan's finance minister, the country's economy has stabilised and should now prioritise export-led growth.

IMF review of Pakistan's economic recovery bailout due

Artificial intelligence is set to transform the global job market, putting millions of jobs at risk while also boosting productivity. However, not all countries are equally prepared for this shift. So, how will AI shape the future of work? Here's a report.

IMF: AI could threaten 33% of jobs in advanced economies

We bring you the latest on the global economy, where divergence, uncertainty, and resilience are shaping the landscape in 2025. From the bustling streets of New York to the vibrant markets of India, the global growth story is anything but uniform. So, let’s break it down...

IMF on global economies: Growth at 3.3% for 2025 and 2026

Pakistan finds itself navigating an economic quagmire in 2025, balancing mounting pressures from the International Monetary Fund, soaring taxes, and a growing list of internal and external challenges. The nation has narrowly avoided a sovereign default, but the risks of another economic crisis loom large. Watch in for more details!

Pakistan Avoids Default With $7 Billion IMF Bailout

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

Fitch upgraded Sri Lanka's long-term credit default rating to CCC+ from CCC- on Friday as it said that "the risk of another default on local currency debt has been reduced by the completion of the international sovereign bond restructuring and an improved outlook for macroeconomic indicators."



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

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

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

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

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

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