IMF Calls For Structural Reforms To Arrest The Economic Growth Slowdown In India. #Gravitas #IMF #IndianEconomy

Gravitas: India's Economic Slowdown: IMF Raises A Red Flag

Summarising The Challenges Faced By Indian Economy. #Gravitas #IMF #IndianEconomy

Gravitas: Indian Economy: The Pain Points

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages.

Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.1 per cent this year. 
But — it's not the first time that the economists have got their prediction wrong.

In November — India's GDP growth rate fell to less than five per cent. India's growth rate has been slipping for five quarters now.

The economic data has some clues — that explain the slowdown in India.

The biggest problem seems to be the demand. Key sectors are reporting a drop in their sales.

In September — the auto sales saw their worst ever fall in 21 years.

There was some recovery in November — but there was an overall drop in domestic sales.

India's top consumer goods companies reported a drop in sales all through this year.

The real estate sector remains in a state of a slump.

The IMF has listed weak income growth as one of the reasons behind the slowdown.

India remains a low-middle income country. The average income of an Indian is a little over 10,000 rupees. That's far less than most of the developed powers in the world.

Job creation has also taken a hit

Last year — a government report said that India's unemployment rate was at a 45 year high.

Another assessment claims that India has lost nine million jobs in six years till 2018.

Access to easy credit has also dried up. This was triggered by the collapse of Infrastructure Leasing &amp; Financial Services Limited (IL&amp;FS). The sudden fall of this institution led to a chain reaction.

Access to cheap credit dried up. It had an impact on the operations of several businessmen.

India's state-run banks to have been struggling with non-performing assets.

The slowdown poses a significant challenge to the Modi government.&nbsp;

Even the global economy is in a crisis mode. The world economy is slowing down — and this could exacerbate the crisis in India.

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages. Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages. Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.1 per cent this year. But — it's not the first time that the economists have got their prediction wrong. In November — India's GDP growth rate fell to less than five per cent. India's growth rate has been slipping for five quarters now. The economic data has some clues — that explain the slowdown in India. The biggest problem seems to be the demand. Key sectors are reporting a drop in their sales. In September — the auto sales saw their worst ever fall in 21 years. There was some recovery in November — but there was an overall drop in domestic sales. India's top consumer goods companies reported a drop in sales all through this year. The real estate sector remains in a state of a slump. The IMF has listed weak income growth as one of the reasons behind the slowdown. India remains a low-middle income country. The average income of an Indian is a little over 10,000 rupees. That's far less than most of the developed powers in the world. Job creation has also taken a hit Last year — a government report said that India's unemployment rate was at a 45 year high. Another assessment claims that India has lost nine million jobs in six years till 2018. Access to easy credit has also dried up. This was triggered by the collapse of Infrastructure Leasing & Financial Services Limited (IL&FS). The sudden fall of this institution led to a chain reaction. Access to cheap credit dried up. It had an impact on the operations of several businessmen. India's state-run banks to have been struggling with non-performing assets. The slowdown poses a significant challenge to the Modi government. Even the global economy is in a crisis mode. The world economy is slowing down — and this could exacerbate the crisis in India.

Decoding Indian economic slowdown: Slow consumption, falling income, low wages

India must take steps quickly to reverse the slowdown of an economy that has been one of the engines of global growth, the International Monetary Fund said Monday. #WION #IMF #EconomicSlowdown #India

IMF Calls For Urgent action by India amid economic Slowdown

Amidst a pronounced economic slowdown in <a href="https://www.wionews.com/business-economy/indian-shares-largely-flat-yes-bank-indiabulls-real-estate-rise-269903">India</a>, the <a href="&lt;div class=&quot;videoWrapper trancodeVideo&quot;&gt;&lt;iframe src=&quot;https://www.wionews.com/business-economy/imf-sidesteps-clash-with-us-over-funding-delays-shareholding-changes-to-2023-256885/embed&quot; width=&quot;560&quot; height=&quot;350&quot; style=&quot;width:100%;max-width:560px;&quot; class=&quot;includeVideo&quot; frameborder=&quot;0&quot; autoplay=1 allowfullscreen&gt;&lt;/iframe&gt;&lt;/div&gt;">International Monetary Fund (IMF)</a> issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown.

In its annual review, the IMF blamed slowing consumption and investment for crippling the country's GDP growth. The effects are more pronounced because of falling tax revenue, considering India was one of the fastest-growing economies in the world just last year.&nbsp;

According to the report, more efforts by the Indian government are needed to fix the slowdown.

For long, the IMF has maintained a macroeconomic outlook on India which has become more subdued in recent years.

Watch:&nbsp;IMF -&nbsp;India now in midst of major economic slowdown, needs urgent action

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/imf-india-now-in-midst-of-major-economic-slowdown-needs-urgent-action-269964/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The report stressed the importance of long-term remedies but also said that growth has been strong in recent years. However, growth has not led to job creation and low food prices, which is contributing to rural distress.

Earlier in October, the IMF had slashed its forecast for Indian GDP's growth by nearly a full point to 6.1 per cent pertaining to the financial year 2019-20.

Additionally, <a href="https://www.wionews.com/world/lebanon-pm-asks-world-bank-imf-help-with-economic-rescue-plan-267959">the organisation</a> has projected inflation to remain at around 3.4 per cent, with effects of less demand set to become pronounced over the next few months.

Food prices have increased in the country lately, pushing the retail inflation rate in November to a three-year high of 5.54 per cent.

The industrial sector output shrank for the third month in a row in October by 3.8 per cent, further indicating a slowdown in the economy.&nbsp;

Even then, India's fiscal deficit has already crossed 7 trillion Rupees, surpassing the annual target in seven months.&nbsp;

The Reserve Bank of India recently tried to contain the slowdown by cutting the key lending rate five times this year to a nine-year low. However, the policy was kept unchanged in a key meeting earlier this month.

Amidst a pronounced economic slowdown in India, the International Monetary Fund (IMF) issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown.

Amidst a pronounced economic slowdown in India, the International Monetary Fund (IMF) issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown. In its annual review, the IMF blamed slowing consumption and investment for crippling the country's GDP growth. The effects are more pronounced because of falling tax revenue, considering India was one of the fastest-growing economies in the world just last year. According to the report, more efforts by the Indian government are needed to fix the slowdown. For long, the IMF has maintained a macroeconomic outlook on India which has become more subdued in recent years. Watch: IMF - India now in midst of major economic slowdown, needs urgent action The report stressed the importance of long-term remedies but also said that growth has been strong in recent years. However, growth has not led to job creation and low food prices, which is contributing to rural distress. Earlier in October, the IMF had slashed its forecast for Indian GDP's growth by nearly a full point to 6.1 per cent pertaining to the financial year 2019-20. Additionally, the organisation has projected inflation to remain at around 3.4 per cent, with effects of less demand set to become pronounced over the next few months. Food prices have increased in the country lately, pushing the retail inflation rate in November to a three-year high of 5.54 per cent. The industrial sector output shrank for the third month in a row in October by 3.8 per cent, further indicating a slowdown in the economy. Even then, India's fiscal deficit has already crossed 7 trillion Rupees, surpassing the annual target in seven months. The Reserve Bank of India recently tried to contain the slowdown by cutting the key lending rate five times this year to a nine-year low. However, the policy was kept unchanged in a key meeting earlier this month.

Indian economic slowdown: International Monetary Fund calls for 'urgent' action

At a time when India's economy is suffering from an acute slowdown, the International Monetary Fund (IMF) has issued a warning and said the current downturn can only be reversed through "urgent" policy actions. IMF in its annual review said declining consumption and investment accompanied by falling tax revenue have arrested India's GDP growth, which was one of the fastest in the world just a year ago. #IndiaGDP #IMF #India #IndiaGDPGrowth

IMF: India now in midst of major economic slowdown, needs urgent action

Lebanon's caretaker prime minister Thursday asked international funding bodies for support in drawing up an emergency rescue plan for his protest-wracked country.

Donors including the World Bank and the International Monetary Fund on Wednesday rebuffed a plea for financial aid pending the rapid formation of a new government to implement key economic reforms.

Caretaker premier Saad Hariri on Thursday made phone calls to World Bank president David Malpass and IMF managing director Kristalina Georgieva, his office said.

"Hariri stressed his commitment to preparing an urgent rescue plan to resolve the crisis while waiting for the formation of a new cabinet able to implement it," it said in a statement.

"He discussed with both the technical support the Work Bank and IMF could provide in drawing up this plan," it added.

Lebanon has been rocked by unprecedented popular protests since October 17 over official mismanagement and corruption demonstrators blame for a deteriorating economy.

In a country where the local currency is pegged to the US dollar and used in everyday transactions, banks have gradually restricted greenback withdrawals, causing a dollar liquidity crisis that has made imports increasingly difficult and expensive.

Hariri also spoke to the president of the World Bank about "the possibility of the bank... increasing its contribution to funding international trade to Lebanon" to help importers bring in essential goods.

Lebanon has been without a cabinet since Hariri stepped down on October 29, with a bitterly divided political class unable to agree on a new premier ever since.

Protesters have demanded a new government composed entirely of independent experts, but analysts say this may be a tall order.

Parliamentary consultations are expected to start towards naming a new prime minister on Monday after the Sunni Muslim religious establishment rejected an alternative candidate for premier and threw its support behind Hariri.

Growth in Lebanon has plummeted in the wake of endless political deadlock in recent years, compounded by the 2011 breakout of civil war in neighbouring Syria.

A recession of more than 0.2 per cent is expected for this year, the World Bank says.

On Thursday, rating agency Fitch also bumped Lebanon down to "CC" from "CCC", after an initial downgrade in August.

"The downgrade of Lebanon's ratings reflects Fitch's view that a government debt restructuring or default is probably owing to acute political uncertainty, de facto capital controls and damaged confidence in the banking sector," it said in a statement.

Lebanon's caretaker prime minister Thursday asked international funding bodies for support in drawing up an emergency rescue plan for his protest-wracked country.

Lebanon's caretaker prime minister Thursday asked international funding bodies for support in drawing up an emergency rescue plan for his protest-wracked country. Donors including the World Bank and the International Monetary Fund on Wednesday rebuffed a plea for financial aid pending the rapid formation of a new government to implement key economic reforms. Caretaker premier Saad Hariri on Thursday made phone calls to World Bank president David Malpass and IMF managing director Kristalina Georgieva, his office said. "Hariri stressed his commitment to preparing an urgent rescue plan to resolve the crisis while waiting for the formation of a new cabinet able to implement it," it said in a statement. "He discussed with both the technical support the Work Bank and IMF could provide in drawing up this plan," it added. Lebanon has been rocked by unprecedented popular protests since October 17 over official mismanagement and corruption demonstrators blame for a deteriorating economy. In a country where the local currency is pegged to the US dollar and used in everyday transactions, banks have gradually restricted greenback withdrawals, causing a dollar liquidity crisis that has made imports increasingly difficult and expensive. Hariri also spoke to the president of the World Bank about "the possibility of the bank... increasing its contribution to funding international trade to Lebanon" to help importers bring in essential goods. Lebanon has been without a cabinet since Hariri stepped down on October 29, with a bitterly divided political class unable to agree on a new premier ever since. Protesters have demanded a new government composed entirely of independent experts, but analysts say this may be a tall order. Parliamentary consultations are expected to start towards naming a new prime minister on Monday after the Sunni Muslim religious establishment rejected an alternative candidate for premier and threw its support behind Hariri. Growth in Lebanon has plummeted in the wake of endless political deadlock in recent years, compounded by the 2011 breakout of civil war in neighbouring Syria. A recession of more than 0.2 per cent is expected for this year, the World Bank says. On Thursday, rating agency Fitch also bumped Lebanon down to "CC" from "CCC", after an initial downgrade in August. "The downgrade of Lebanon's ratings reflects Fitch's view that a government debt restructuring or default is probably owing to acute political uncertainty, de facto capital controls and damaged confidence in the banking sector," it said in a statement.

Lebanon PM asks World Bank, IMF help with economic rescue plan

The number of&nbsp;Egyptians&nbsp;switching to&nbsp;duel-fuel&nbsp;vehicles&nbsp;is accelerating as the government pushes motorists to use cheaper, cleaner and plentiful natural gas.

About 300,000&nbsp;vehicles, mostly taxis and minibuses, have been&nbsp;converted to&nbsp;duel-fuel&nbsp;systems since the 1990s,&nbsp;a small fraction of the 11 million&nbsp;vehicles&nbsp;licensed in the country.

But authorities are encouraging&nbsp;more&nbsp;drivers to switch by subsidising vehicle conversions, keeping compressed natural gas (CNG)&nbsp;prices&nbsp;low, and building CNG&nbsp;fuelling stations and conversion plants.

Nearly 32,000&nbsp;vehicles&nbsp;were&nbsp;converted during the financial year from July 2018 to June 2019, two&nbsp;petroleum ministry officials said. The target for this financial year is 50,000&nbsp;vehicles. That compares with just 6,000 conversions in 2015/16.

Officials say the number of private cars&nbsp;converting is rising. They hope this will soften the blow of&nbsp;petrol&nbsp;price hikes after recent subsidy removals, as well as reducing pollution and cutting the import bill for liquid&nbsp;fuels.

Egyptians&nbsp;have seen steep increases to&nbsp;fuel&nbsp;prices&nbsp;since 2014, with most energy&nbsp;prices&nbsp;brought up to international levels under a three-year, IMF-backed reform plan completed this year.

But gas has remained cheap compared with liquid&nbsp;fuels.

One cubic metre of CNG costs 3.5 Egyptian pounds, roughly the equivalent of one litre of diesel at 6.75 pounds or one litre of 80-octane&nbsp;petrol&nbsp;at 6.5 pounds.

"The ministry of&nbsp;petroleum has maintained an appropriate price so that natural gas always stays at 50 per cent&nbsp;of the 80-octane&nbsp;petrol&nbsp;(price), which encouraged drivers to turn to conversion," said Abdelfattah Moustafa Farahat, head of Egyptian International Gas Technology GASTEC.

Private cars now make up 30 per cent&nbsp;of conversions, Farahat said.

Officials say a boom in natural gas production and exploration since the discovery of the giant offshore Zohr gas field in 2015 spurred them to act. Egypt became self-sufficient in natural gas in late 2018.

"The discovery of Zohr field and achieving self-sufficiency in natural gas have encouraged the state to think: why don't we use this gas as a domestic&nbsp;fuel&nbsp;and work to expand its use," said ‭‭‭‭Ayman Shalaby, assistant vice chairman at the Egyptian Natural Gas Holding Company (EGAS).

GASTEC is one of two state-run companies, along with the Natural Gas&nbsp;Vehicles&nbsp;Company (Car Gas), that dominate the sector. Private and foreign companies have also entered the market in the past few years.

GASTEC plans to set up 54 new&nbsp;duel-fuel&nbsp;stations with CNG over the next three years, in partnership with Italy's Eni, as well as building&nbsp;more&nbsp;fuelling stations for public buses, Farahat said. Currently, Egypt has 187 CNG&nbsp;fuelling stations and 72 conversion centres.

The government also has a plan for minibuses, a common form of cheap transport across Egypt. Under the scheme, 142,000 minibuses would be&nbsp;converted and another 88,000 old diesel minibuses replaced with biofuel&nbsp;equivalents over the next three years, while&nbsp;more&nbsp;than 350&nbsp;fuelling stations would be built.

Motorists gave the&nbsp;duel-fuel&nbsp;system mixed reviews. Some praised cost savings on&nbsp;fuel but complained of reduced power or luggage space.

Officials say conversions are preceded by technical checks and the cylinder size and shape can be adapted to the vehicle.

The government is subsidising and providing low-interest instalment plans for conversion systems, which cost 5,000-7,500 pounds, as well as encouraging assembly plants and importers to provide&nbsp;vehicles&nbsp;with built-in systems.

The number of Egyptians switching to duel-fuel vehicles is accelerating as the government pushes motorists to use cheaper, cleaner and plentiful natural gas. About 300,000 vehicles, mostly taxis and minibuses, have been converted to duel-fuel systems since the 1990s, a small fraction of the 11 million vehicles licensed in the country.

The number of Egyptians switching to duel-fuel vehicles is accelerating as the government pushes motorists to use cheaper, cleaner and plentiful natural gas. About 300,000 vehicles, mostly taxis and minibuses, have been converted to duel-fuel systems since the 1990s, a small fraction of the 11 million vehicles licensed in the country. But authorities are encouraging more drivers to switch by subsidising vehicle conversions, keeping compressed natural gas (CNG) prices low, and building CNG fuelling stations and conversion plants. Nearly 32,000 vehicles were converted during the financial year from July 2018 to June 2019, two petroleum ministry officials said. The target for this financial year is 50,000 vehicles. That compares with just 6,000 conversions in 2015/16. Officials say the number of private cars converting is rising. They hope this will soften the blow of petrol price hikes after recent subsidy removals, as well as reducing pollution and cutting the import bill for liquid fuels. Egyptians have seen steep increases to fuel prices since 2014, with most energy prices brought up to international levels under a three-year, IMF-backed reform plan completed this year. But gas has remained cheap compared with liquid fuels. One cubic metre of CNG costs 3.5 Egyptian pounds, roughly the equivalent of one litre of diesel at 6.75 pounds or one litre of 80-octane petrol at 6.5 pounds. "The ministry of petroleum has maintained an appropriate price so that natural gas always stays at 50 per cent of the 80-octane petrol (price), which encouraged drivers to turn to conversion," said Abdelfattah Moustafa Farahat, head of Egyptian International Gas Technology GASTEC. Private cars now make up 30 per cent of conversions, Farahat said. Officials say a boom in natural gas production and exploration since the discovery of the giant offshore Zohr gas field in 2015 spurred them to act. Egypt became self-sufficient in natural gas in late 2018. "The discovery of Zohr field and achieving self-sufficiency in natural gas have encouraged the state to think: why don't we use this gas as a domestic fuel and work to expand its use," said ‭‭‭‭Ayman Shalaby, assistant vice chairman at the Egyptian Natural Gas Holding Company (EGAS). GASTEC is one of two state-run companies, along with the Natural Gas Vehicles Company (Car Gas), that dominate the sector. Private and foreign companies have also entered the market in the past few years. GASTEC plans to set up 54 new duel-fuel stations with CNG over the next three years, in partnership with Italy's Eni, as well as building more fuelling stations for public buses, Farahat said. Currently, Egypt has 187 CNG fuelling stations and 72 conversion centres. The government also has a plan for minibuses, a common form of cheap transport across Egypt. Under the scheme, 142,000 minibuses would be converted and another 88,000 old diesel minibuses replaced with biofuel equivalents over the next three years, while more than 350 fuelling stations would be built. Motorists gave the duel-fuel system mixed reviews. Some praised cost savings on fuel but complained of reduced power or luggage space. Officials say conversions are preceded by technical checks and the cylinder size and shape can be adapted to the vehicle. The government is subsidising and providing low-interest instalment plans for conversion systems, which cost 5,000-7,500 pounds, as well as encouraging assembly plants and importers to provide vehicles with built-in systems.

As petrol prices rise, more Egyptians convert to duel-fuel vehicles

The International Monetary Fund said Saturday it had reached an agreement in principle with Ukraine on a new $5.5 billion, three-year aid program for the war-scarred country.

IMF Managing Director Kristalina Georgieva welcomed the deal, adding it was subject to IMF management approval.

Georgieva said she spoke by telephone on Saturday to President Volodymyr Zelensky and commended him on "impressive progress" on reforms and "sound economic policies."

"The President and I agreed that Ukraine's economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests," she said.

She added that it was "paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions."

The IMF and other international donors have repeatedly pressed Kiev to attract much-needed investment by addressing pervasive corruption and reducing the power of oligarchs.

But bankers and analysts said they fear the current authorities are targeting former bankers who have helped clean up the market instead of the oligarch owners of banks that go bankrupt.

Georgieva said that the effectiveness of the new program would be "conditional on the implementation of a set of prior actions."

War budget

Ukrainian lawmakers in November authorized an increase in defence spending to record levels as Zelensky vows to end the country's long conflict with Russian-backed separatists.

Approving the 2020 budget, lawmakers voted for a 16 per cent increase in both defence and security spending, bringing it to nearly $10 billion, or 5.45 per cent of gross domestic product.

At his inauguration in May, the 41-year-old president -- a former comedian -- urged people with Ukrainian heritage to return home and help build a "new, strong and successful Ukraine."

The country is also in the spotlight due to the impeachment proceedings against US President Donald Trump.

Trump is accused of abusing his office by pressuring Ukraine to find dirt on former US vice president Joe Biden, his potential challenger in the 2020 election.

The White House maintains Trump was simply encouraging the new government of Ukraine to rein in corruption.

More than 13,000 people have been killed in Ukraine's conflict with separatists in the industrial east which broke out shortly after Moscow annexed Crimea in 2014.

Ukraine's economy has been hit hard by the conflict and the country has struggled to keep up with arms purchases.

It is also reliant on foreign military help, including aid from the United States that was temporarily frozen this year in a move now being scrutinized in the impeachment probe.

Ukraine's overall budget for 2020 set an economic growth target of 3.7 per cent. It also set a deficit of 2.09 per cent -- in line with requirements of the IMF.

The International Monetary Fund said Saturday it had reached an agreement in principle with Ukraine on a new $5.5 billion, three-year aid program for the war-scarred country.

The International Monetary Fund said Saturday it had reached an agreement in principle with Ukraine on a new $5.5 billion, three-year aid program for the war-scarred country. IMF Managing Director Kristalina Georgieva welcomed the deal, adding it was subject to IMF management approval. Georgieva said she spoke by telephone on Saturday to President Volodymyr Zelensky and commended him on "impressive progress" on reforms and "sound economic policies." "The President and I agreed that Ukraine's economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests," she said. She added that it was "paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions." The IMF and other international donors have repeatedly pressed Kiev to attract much-needed investment by addressing pervasive corruption and reducing the power of oligarchs. But bankers and analysts said they fear the current authorities are targeting former bankers who have helped clean up the market instead of the oligarch owners of banks that go bankrupt. Georgieva said that the effectiveness of the new program would be "conditional on the implementation of a set of prior actions." War budget Ukrainian lawmakers in November authorized an increase in defence spending to record levels as Zelensky vows to end the country's long conflict with Russian-backed separatists. Approving the 2020 budget, lawmakers voted for a 16 per cent increase in both defence and security spending, bringing it to nearly $10 billion, or 5.45 per cent of gross domestic product. At his inauguration in May, the 41-year-old president -- a former comedian -- urged people with Ukrainian heritage to return home and help build a "new, strong and successful Ukraine." The country is also in the spotlight due to the impeachment proceedings against US President Donald Trump. Trump is accused of abusing his office by pressuring Ukraine to find dirt on former US vice president Joe Biden, his potential challenger in the 2020 election. The White House maintains Trump was simply encouraging the new government of Ukraine to rein in corruption. More than 13,000 people have been killed in Ukraine's conflict with separatists in the industrial east which broke out shortly after Moscow annexed Crimea in 2014. Ukraine's economy has been hit hard by the conflict and the country has struggled to keep up with arms purchases. It is also reliant on foreign military help, including aid from the United States that was temporarily frozen this year in a move now being scrutinized in the impeachment probe. Ukraine's overall budget for 2020 set an economic growth target of 3.7 per cent. It also set a deficit of 2.09 per cent -- in line with requirements of the IMF.

International Monetary Fund and Ukraine reach tentative $5.5 billion aid deal

The IMF on Friday praised Pakistan's economic performance and agreed on the next steps, paving the way for the release of another portion of a $6 billion, three-year loan package.

Once the International Monetary Fund board gives the go-ahead, the Washington-based lender will provide $450 million to help right the South Asian nation's economy, on top of the $1 billion released in July.

"Despite a difficult environment, program implementation has been good, and all performance criteria for end-September were met with comfortable margins," IMF mission chief Ernesto Ramirez Rigo said in a statement.

The official, who led a team that spent two weeks in the country, pointed to signs of improving economic stability, including the move to a flexible exchange rate, and slowing inflation that is projected to fall under 12 per cent next year.

But he said more work was needed to target money laundering and on terror finance controls.

Approval of the first performance review of Pakistan's policy programme will also help unlock "significant funding from bilateral and multilateral partners."

Under the loan program, the government agreed to slash civil expenditure and freeze military spending while promising to substantially raise revenues to stem a yawning fiscal deficit, and pledging to collect 5.5 trillion rupees&nbsp;in taxes.

The IMF on Friday praised Pakistan's economic performance and agreed on the next steps, paving the way for the release of another portion of a $6 billion, three-year loan package.

The IMF on Friday praised Pakistan's economic performance and agreed on the next steps, paving the way for the release of another portion of a $6 billion, three-year loan package. Once the International Monetary Fund board gives the go-ahead, the Washington-based lender will provide $450 million to help right the South Asian nation's economy, on top of the $1 billion released in July. "Despite a difficult environment, program implementation has been good, and all performance criteria for end-September were met with comfortable margins," IMF mission chief Ernesto Ramirez Rigo said in a statement. The official, who led a team that spent two weeks in the country, pointed to signs of improving economic stability, including the move to a flexible exchange rate, and slowing inflation that is projected to fall under 12 per cent next year. But he said more work was needed to target money laundering and on terror finance controls. Approval of the first performance review of Pakistan's policy programme will also help unlock "significant funding from bilateral and multilateral partners." Under the loan program, the government agreed to slash civil expenditure and freeze military spending while promising to substantially raise revenues to stem a yawning fiscal deficit, and pledging to collect 5.5 trillion rupees in taxes.

International Monetary Fund approves $450 million loan to Pakistan as part of three-year package

Brazil is all set to host this year's BRICS summit which will see Indian PM Modi participating. Speaking to our diplomatic correspondent Sidhant Sibal, Brazilian envoy to India Andre Aranha Correa Do Lago said one of the key objectives of the summit will be innovation and how these five countries - India, Brazil, China, Russia and South Africa can work together and set an example for the world.&nbsp;

Excerpts:

WION: What will be the main agenda of the BRICS summit?

Andre Aranha Correa Do Lago: We are very happy to host the summit, this is the 11th BRICS summit and what really Brazil thinks is very important, its economic growth, innovation and technology for the future, which is an important objective. There are different things happening in the world, but we have to focus on this, how much these countries can get together and this can improve things and economic growth, science, technology and innovation.

WION: How much global growth can be part of the talks, since BRICS is a grouping based on economic issues?

Andre Aranha Correa Do Lago: As you know, we have very different circumstances, India has been growing very strongly, as well as China but Russia, Brazil, South Africa have been growing through more difficult times with much less significant percentage of growth.

What we know, we are all living in a world full of uncertainties and since these economies got together in the group, &nbsp;because of our economic significance, we have to show we have lines that we follow and that their things to show what can be done between us and that can be example for rest of the world.

WION: Are you planning to call other Latin American countries?

Andre Aranha Correa Do Lago: In this BRICS summit, the Brazilian government decided not to call anybody else, just five leaders and somehow we want to concentrate on the leadership of the five countries.

It will also be a celebration because one doesn't notice but during the process of presidency of BRICS we had several meetings. This year we organising over 90 government meetings, 17 at the level of ministers and also 15 people-to-people meet which is a great achievement. BRICS institutions coming together.

The summit is not something to be looked at in isolation, it is in fact, the symbolic end of engagements.

WION: How are current India-Brazil ties faring?

Andre Aranha Correa Do Lago: The relationship is getting stronger, and you have to think of one element, which is forgotten, the most important new groups formed recently to try to solve some of the difficulties we have in multilateral, basically BRICS formed to deal with economics and trade regarding the IMF, WTO but we have also we have the group G4 to deal the UN issues.&nbsp;

In G4, we have India with Brazil, and then IBSA that concentrates on south-south cooperation and has big democracies in three different continents and it is being preceded by India this year. SO whatever geometry we choose to try to overcome the difficulties of traditional structure, India and Brazil are always together.&nbsp;

WION: Any high-level visits in the offing from Brazil to India?

Andre Aranha Correa Do Lago: I hope so. As you know reports of things that can happen, the fact this is a very good moment for the relationship and there is a very good understanding between our leaders in the Osaka G20 meet and it has continued.

We all know how important it is to have a special relationship between the leaders and will be good to have more high-level visits.

WION: What is your take on UN reforms?

Andre Aranha Correa Do Lago: Well, I hope yes. As a Brazilian diplomat I have believe in the United Nations and both India and Brazil want to work with the UN, we don't want to reduce the strength of the UN.

But the world has changed since 1945 and no doubt reforms are needed. It is a complex process and we have to remember, their can't be reforms without considering India and Brazil, this is the main message and the reform should reduce us.

Brazil is all set to host this year's BRICS summit which will see Indian PM Modi participating. Speaking to our diplomatic correspondent Sidhant Sibal, Brazilian envoy to India Andre Aranha Correa Do Lago said one of the key objectives of the summit will be innovation and how these five countries - India, Brazil, China, Russia and South Africa can work together and set an example for the world.

Brazil is all set to host this year's BRICS summit which will see Indian PM Modi participating. Speaking to our diplomatic correspondent Sidhant Sibal, Brazilian envoy to India Andre Aranha Correa Do Lago said one of the key objectives of the summit will be innovation and how these five countries - India, Brazil, China, Russia and South Africa can work together and set an example for the world. Excerpts: WION: What will be the main agenda of the BRICS summit? Andre Aranha Correa Do Lago: We are very happy to host the summit, this is the 11th BRICS summit and what really Brazil thinks is very important, its economic growth, innovation and technology for the future, which is an important objective. There are different things happening in the world, but we have to focus on this, how much these countries can get together and this can improve things and economic growth, science, technology and innovation. WION: How much global growth can be part of the talks, since BRICS is a grouping based on economic issues? Andre Aranha Correa Do Lago: As you know, we have very different circumstances, India has been growing very strongly, as well as China but Russia, Brazil, South Africa have been growing through more difficult times with much less significant percentage of growth. What we know, we are all living in a world full of uncertainties and since these economies got together in the group, because of our economic significance, we have to show we have lines that we follow and that their things to show what can be done between us and that can be example for rest of the world. WION: Are you planning to call other Latin American countries? Andre Aranha Correa Do Lago: In this BRICS summit, the Brazilian government decided not to call anybody else, just five leaders and somehow we want to concentrate on the leadership of the five countries. It will also be a celebration because one doesn't notice but during the process of presidency of BRICS we had several meetings. This year we organising over 90 government meetings, 17 at the level of ministers and also 15 people-to-people meet which is a great achievement. BRICS institutions coming together. The summit is not something to be looked at in isolation, it is in fact, the symbolic end of engagements. WION: How are current India-Brazil ties faring? Andre Aranha Correa Do Lago: The relationship is getting stronger, and you have to think of one element, which is forgotten, the most important new groups formed recently to try to solve some of the difficulties we have in multilateral, basically BRICS formed to deal with economics and trade regarding the IMF, WTO but we have also we have the group G4 to deal the UN issues. In G4, we have India with Brazil, and then IBSA that concentrates on south-south cooperation and has big democracies in three different continents and it is being preceded by India this year. SO whatever geometry we choose to try to overcome the difficulties of traditional structure, India and Brazil are always together. WION: Any high-level visits in the offing from Brazil to India? Andre Aranha Correa Do Lago: I hope so. As you know reports of things that can happen, the fact this is a very good moment for the relationship and there is a very good understanding between our leaders in the Osaka G20 meet and it has continued. We all know how important it is to have a special relationship between the leaders and will be good to have more high-level visits. WION: What is your take on UN reforms? Andre Aranha Correa Do Lago: Well, I hope yes. As a Brazilian diplomat I have believe in the United Nations and both India and Brazil want to work with the UN, we don't want to reduce the strength of the UN. But the world has changed since 1945 and no doubt reforms are needed. It is a complex process and we have to remember, their can't be reforms without considering India and Brazil, this is the main message and the reform should reduce us.

BRICS can set example for the rest of the world: Brazilian envoy

Unemployment and sluggish economic growth are fuelling social tension and popular protests in <a href="https://www.wionews.com/business-economy/world-suffering-synchronised-slowdown-says-new-imf-chef-effect-more-pronounced-in-india-254687">several Arab countries</a>, the International Monetary Fund said Monday.

The unrest is, in turn, contributing to slower growth in the Middle East and North Africa (MENA) region, alongside global trade tensions, oil price volatility and a <a href="https://www.wionews.com/world/eu-agrees-brexit-extension-but-sets-no-date-as-uk-squabbles-over-election-258193">disorderly Brexit process</a>, the IMF said in a report on the regional economic outlook.

Earlier this month it lowered the 2019 forecast for the region -&nbsp;taking in the Arab nations and Iran -&nbsp;to a meagre 0.1 per cent from 1.1 per cent last year.

The IMF slashed its outlook for the region's three largest economies -&nbsp;Saudi Arabia, Iran and the United Arab Emirates.

The risks around the forecast of earlier this month "are skewed to the downside and are highly dependent on global factors," the IMF said in its report on Monday.

"The level of growth that countries in the region are having is below what is needed to address unemployment," said Jihad Azour, the IMF's director for the Middle East and Central Asia.

"We are in a region where the rate of unemployment at the youth level exceeds 25-30 per cent and this requires growth to be higher by 1-2 per cent" in order to make a dent in joblessness, Azour told AFP in an interview.

The IMF report said that high unemployment was worsening social tensions in Arab countries.&nbsp;

"Unemployment averages 11 per cent throughout the region versus seven per cent across other emerging market and developing economies," it said.&nbsp;

"Women and young people are particularly likely to be out of work, with more than 18 per cent of women... without jobs in 2018."

Violent protests have broken out in several Arab countries since early 2010 and turned into bloody civil wars in Syria, Yemen and Libya.

A new wave of demonstrations erupted over the last year in Algeria, Sudan, Iraq and Lebanon, typically demanding economic reforms and action against corruption.

In Lebanon, where protesters have brought the country to a standstill with demands for a full overhaul of the political system, the economy grew at a very slow pace over the past few years, Azour noted.

"The government has to act firmly and swiftly in order to address those imbalances, bring confidence back by addressing the fiscal situation, and lower expenditure," he said.

The IMF also said that public debt levels were very high in many Arab countries -- exceeding 85 per cent of gross domestic product (GDP) on average, with rates of more than 150 per cent in Lebanon and Sudan.

"Having built over many years, the cost of public debt burdens has become sizeable, preventing investments critical to the region's long-term economic future," it said.

The IMF said that Iran, which is subject to crippling US sanctions, has entered a steep economic recession and faces a battle against spiralling inflationary pressures.

The Islamic republic's economy is projected to contract by 9.5 percent this year after posting negative growth of 4.8 percent in 2018.

Iranian authorities must align "the exchange rate close to the market rate and also reform the financial sector... and try to address some of the implications of the high level of inflation," Azour said.

As a result of the sanctions, Tehran is believed to be exporting only around 500,000 barrels per day of crude, down from over two million bpd before the sanctions.

The IMF said that oil-rich Gulf Cooperation Council (GCC) states, led by Saudi Arabia, are expected to grow by just 0.7 percent this year from 2.0 percent in 2018 due to lower oil prices and output.

"GCC economies need to diversify and grow out of oil and this requires them to accelerate the reforms that have been started in the last four to five years," Azour said.

Unemployment and sluggish economic growth are fuelling social tension and popular protests in several Arab countries, the International Monetary Fund said Monday.

Unemployment and sluggish economic growth are fuelling social tension and popular protests in several Arab countries, the International Monetary Fund said Monday. The unrest is, in turn, contributing to slower growth in the Middle East and North Africa (MENA) region, alongside global trade tensions, oil price volatility and a disorderly Brexit process, the IMF said in a report on the regional economic outlook. Earlier this month it lowered the 2019 forecast for the region - taking in the Arab nations and Iran - to a meagre 0.1 per cent from 1.1 per cent last year. The IMF slashed its outlook for the region's three largest economies - Saudi Arabia, Iran and the United Arab Emirates. The risks around the forecast of earlier this month "are skewed to the downside and are highly dependent on global factors," the IMF said in its report on Monday. "The level of growth that countries in the region are having is below what is needed to address unemployment," said Jihad Azour, the IMF's director for the Middle East and Central Asia. "We are in a region where the rate of unemployment at the youth level exceeds 25-30 per cent and this requires growth to be higher by 1-2 per cent" in order to make a dent in joblessness, Azour told AFP in an interview. The IMF report said that high unemployment was worsening social tensions in Arab countries. "Unemployment averages 11 per cent throughout the region versus seven per cent across other emerging market and developing economies," it said. "Women and young people are particularly likely to be out of work, with more than 18 per cent of women... without jobs in 2018." Violent protests have broken out in several Arab countries since early 2010 and turned into bloody civil wars in Syria, Yemen and Libya. A new wave of demonstrations erupted over the last year in Algeria, Sudan, Iraq and Lebanon, typically demanding economic reforms and action against corruption. In Lebanon, where protesters have brought the country to a standstill with demands for a full overhaul of the political system, the economy grew at a very slow pace over the past few years, Azour noted. "The government has to act firmly and swiftly in order to address those imbalances, bring confidence back by addressing the fiscal situation, and lower expenditure," he said. The IMF also said that public debt levels were very high in many Arab countries -- exceeding 85 per cent of gross domestic product (GDP) on average, with rates of more than 150 per cent in Lebanon and Sudan. "Having built over many years, the cost of public debt burdens has become sizeable, preventing investments critical to the region's long-term economic future," it said. The IMF said that Iran, which is subject to crippling US sanctions, has entered a steep economic recession and faces a battle against spiralling inflationary pressures. The Islamic republic's economy is projected to contract by 9.5 percent this year after posting negative growth of 4.8 percent in 2018. Iranian authorities must align "the exchange rate close to the market rate and also reform the financial sector... and try to address some of the implications of the high level of inflation," Azour said. As a result of the sanctions, Tehran is believed to be exporting only around 500,000 barrels per day of crude, down from over two million bpd before the sanctions. The IMF said that oil-rich Gulf Cooperation Council (GCC) states, led by Saudi Arabia, are expected to grow by just 0.7 percent this year from 2.0 percent in 2018 due to lower oil prices and output. "GCC economies need to diversify and grow out of oil and this requires them to accelerate the reforms that have been started in the last four to five years," Azour said.

Unemployment, sluggish growth fuelling protests in Arab countries: IMF

The International Monetary Fund (IMF) said it is assessing an emergency reform package announced by Lebanon's government last week and stressed reforms should be implemented urgently given the country's high debt levels and fiscal deficits.

Also read:&nbsp;<a href="https://www.wionews.com/world/with-lebanon-in-deadlock-protesters-form-human-chain-258437">With Lebanon in deadlock, protesters form human chain</a>

Lebanon has been swept by over 10 days of protests against a political class accused of corruption, mismanagement of state finances and pushing the country toward an economic collapse unseen since the 1975-90 civil war.

Last week the government unveiled a set of measures aimed partly at appeasing demonstrators and convincing foreign donors it can slash next year's budget deficit.

But the emergency reform package failed to persuade demonstrators to leave the streets or investors to halt a plunge in its bonds.

"We're studying it, we need to see not only what is in the package but also the timeline of the package for a country like Lebanon that has such high level of debt over GDP (gross domestic product) and high levels of twin deficits," Jihad Azour, director of the IMF's Middle East and Central Asia Department told Reuters.

Lebanon has one of the world's highest levels of government debt as a share of economic output. The IMF has forecast a fiscal deficit of 9.8% of GDP this year and 11.5% next year.

Prime Minister Saad al-Hariri said the emergency measures introduced last week – which included the symbolic halving of the salaries of ministers and lawmakers – might not meet the protesters' demands but were a start towards achieving some of them.

"Fundamental reforms are urgently needed in Lebanon in order to restore macro-economic stability, bring confidence back, stimulate growth and provide some solutions to the issues that were raised by the street," IMF's Azour said.

The Lebanese government is planning to accelerate a long-delayed reform of the state-run power sector, which drains $2 billion from the treasury per year while failing to deliver enough power for Lebanese.

Azour said that to restore confidence in the economy some of the long-awaited reforms in the energy and telecom sectors must be "clearly implemented with a very articulate timetable."

He said the fund was in regular discussions with the Lebanese authorities but that they had not asked the IMF to provide programme funding.

The International Monetary Fund (IMF) said it is assessing an emergency reform package announced by Lebanon's government last week and stressed reforms should be implemented urgently given the country's high debt levels and fiscal deficits.

The International Monetary Fund (IMF) said it is assessing an emergency reform package announced by Lebanon's government last week and stressed reforms should be implemented urgently given the country's high debt levels and fiscal deficits. Also read: With Lebanon in deadlock, protesters form human chain Lebanon has been swept by over 10 days of protests against a political class accused of corruption, mismanagement of state finances and pushing the country toward an economic collapse unseen since the 1975-90 civil war. Last week the government unveiled a set of measures aimed partly at appeasing demonstrators and convincing foreign donors it can slash next year's budget deficit. But the emergency reform package failed to persuade demonstrators to leave the streets or investors to halt a plunge in its bonds. "We're studying it, we need to see not only what is in the package but also the timeline of the package for a country like Lebanon that has such high level of debt over GDP (gross domestic product) and high levels of twin deficits," Jihad Azour, director of the IMF's Middle East and Central Asia Department told Reuters. Lebanon has one of the world's highest levels of government debt as a share of economic output. The IMF has forecast a fiscal deficit of 9.8% of GDP this year and 11.5% next year. Prime Minister Saad al-Hariri said the emergency measures introduced last week – which included the symbolic halving of the salaries of ministers and lawmakers – might not meet the protesters' demands but were a start towards achieving some of them. "Fundamental reforms are urgently needed in Lebanon in order to restore macro-economic stability, bring confidence back, stimulate growth and provide some solutions to the issues that were raised by the street," IMF's Azour said. The Lebanese government is planning to accelerate a long-delayed reform of the state-run power sector, which drains $2 billion from the treasury per year while failing to deliver enough power for Lebanese. Azour said that to restore confidence in the economy some of the long-awaited reforms in the energy and telecom sectors must be "clearly implemented with a very articulate timetable." He said the fund was in regular discussions with the Lebanese authorities but that they had not asked the IMF to provide programme funding.

IMF stresses urgency of reforms in Lebanon to restore economic stability

IMF team to arrive in Pak today. Indian delegations will also be present. Pak to raise Indus water treaty row with India. Watch this video to know more.

IMF team to arrive in Pak today, Pak to raise Indus water treaty row

Former International Monetary Fund chief&nbsp;Christine Lagarde said <a href="https://www.wionews.com/world/mitch-mcconnell-slams-trumps-syria-withdrawal-as-strategic-nightmare-256849">President Donald Trump's</a> trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes.

Lagarde, who takes over leadership of the European Central Bank on November 1, called for world leaders to act like grownups and negotiate a solution to the trade conflicts, and called for "rational decisions."

Newly freed from the restraints of her previous post, where she would have had to guard her language, Lagarde said, "market stability should not be the subject of a tweet here, a tweet there."

"It requires consideration, thinking, quiet and measured and rational decisions,"&nbsp;she said of Trump in the interview due to air Sunday night.

Lagarde led the Washington-based crisis lender for eight years and previously was more cautious in comments about Trump since the United States is the main IMF shareholder.

In the interview, she warned that Trump’s trade war with China will give the global economy "a big haircut."&nbsp;

"My very, very strong message to all policymakers is please sit down like big men, many men in those rooms and put everything on the table, and try to deal bit by bit, piece by piece, so that we have certainty," she said, according to excerpts of the interview released by CBS News.

As she takes on the new role as a central banker, Lagarde also took a swipe at Trump's barrage of criticism of his own Federal Reserve Chairman Jerome Powell, whom Trump has called a "bonehead" among other insults.

"A central bank governor does best his job if he is independent."

Former International Monetary Fund chief Christine Lagarde said President Donald Trump's trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes.

Former International Monetary Fund chief Christine Lagarde said President Donald Trump's trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes. Lagarde, who takes over leadership of the European Central Bank on November 1, called for world leaders to act like grownups and negotiate a solution to the trade conflicts, and called for "rational decisions." Newly freed from the restraints of her previous post, where she would have had to guard her language, Lagarde said, "market stability should not be the subject of a tweet here, a tweet there." "It requires consideration, thinking, quiet and measured and rational decisions," she said of Trump in the interview due to air Sunday night. Lagarde led the Washington-based crisis lender for eight years and previously was more cautious in comments about Trump since the United States is the main IMF shareholder. In the interview, she warned that Trump’s trade war with China will give the global economy "a big haircut." "My very, very strong message to all policymakers is please sit down like big men, many men in those rooms and put everything on the table, and try to deal bit by bit, piece by piece, so that we have certainty," she said, according to excerpts of the interview released by CBS News. As she takes on the new role as a central banker, Lagarde also took a swipe at Trump's barrage of criticism of his own Federal Reserve Chairman Jerome Powell, whom Trump has called a "bonehead" among other insults. "A central bank governor does best his job if he is independent."

Former International Monetary Fund chief Lagarde takes swipe at Trump's Twitter habits

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023.

The move ends a deadlock with the United States, which had opposed shareholding changes that would give a bigger voice to China and other large, fast-growing emerging markets in a review process that was due for completion this year.

IMF Managing Director Kristalina Georgieva announced the decision at the Fund's and World Bank's annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth.

US Treasury Secretary Steven Mnuchin, who holds an effective veto over major Fund decisions, endorsed the move, which calls for a doubling of the IMF's crisis lending fund to about $500 billion, restoring it to levels during the 2008-09 financial crisis. It would be accompanied by a reduction in bilateral lending arrangement to keep overall IMF resources unchanged.

But it would require the United States to double its commitment by contributing about $38 billion to the fund, known as the New Arrangements to Borrow (NAB), a move that would need approval from the US Congress.

"We continue to support efforts to maintain the IMF's current resources so that the IMF is sufficiently equipped to respond to potential crises over the medium term," Mnuchin said in a statement to the IMF's steering committee.

In April, Mnuchin said he was firmly opposed to increasing the IMF's overall funding and altering shareholding quotas.

"In our view, the IMF currently has ample resources to achieve its mission," he said at the time.

The New Arrangements to Borrow, first launched in 1998 and increased 10-fold during the financial crisis a decade later, were due to expire in 2022.

Bilateral lending arrangements, totalling about $440 billion, were due to expire at the end of 2019. These will be extended for a year to buy governments time to approve the changes.

But the deal puts off for four years a reckoning over how the growing influence in the global economy of China, Brazil and India will be reflected in the governance of the IMF.

The IMF's bylaws drafted at the end of World War Two require the Fund to be headquartered in the world's largest economy - which may require a shift in coming decades based on forecasts that China's GDP will eventually exceed that of the United States.

The deal preserves the US veto power at the IMF and ends a deadlock over quotas while avoiding a bigger share for China for the time being, said Mark Sobel, a former US Treasury official and US executive director at the IMF.

"This is second-best compared to a quota increase, but it merits support," added Sobel, who is now with the Official Monetary and Financial Institutions Forum think-tank.

It also may be an easier sell to Congress, which balked for years at the last quota increase agreed in 2010 that boosted China's and other emerging markets' voting power and shrunk that of European countries. Those changes were not implemented until 2016 after Congress approved it in a spending bill.

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023.

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023. The move ends a deadlock with the United States, which had opposed shareholding changes that would give a bigger voice to China and other large, fast-growing emerging markets in a review process that was due for completion this year. IMF Managing Director Kristalina Georgieva announced the decision at the Fund's and World Bank's annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth. US Treasury Secretary Steven Mnuchin, who holds an effective veto over major Fund decisions, endorsed the move, which calls for a doubling of the IMF's crisis lending fund to about $500 billion, restoring it to levels during the 2008-09 financial crisis. It would be accompanied by a reduction in bilateral lending arrangement to keep overall IMF resources unchanged. But it would require the United States to double its commitment by contributing about $38 billion to the fund, known as the New Arrangements to Borrow (NAB), a move that would need approval from the US Congress. "We continue to support efforts to maintain the IMF's current resources so that the IMF is sufficiently equipped to respond to potential crises over the medium term," Mnuchin said in a statement to the IMF's steering committee. In April, Mnuchin said he was firmly opposed to increasing the IMF's overall funding and altering shareholding quotas. "In our view, the IMF currently has ample resources to achieve its mission," he said at the time. The New Arrangements to Borrow, first launched in 1998 and increased 10-fold during the financial crisis a decade later, were due to expire in 2022. Bilateral lending arrangements, totalling about $440 billion, were due to expire at the end of 2019. These will be extended for a year to buy governments time to approve the changes. But the deal puts off for four years a reckoning over how the growing influence in the global economy of China, Brazil and India will be reflected in the governance of the IMF. The IMF's bylaws drafted at the end of World War Two require the Fund to be headquartered in the world's largest economy - which may require a shift in coming decades based on forecasts that China's GDP will eventually exceed that of the United States. The deal preserves the US veto power at the IMF and ends a deadlock over quotas while avoiding a bigger share for China for the time being, said Mark Sobel, a former US Treasury official and US executive director at the IMF. "This is second-best compared to a quota increase, but it merits support," added Sobel, who is now with the Official Monetary and Financial Institutions Forum think-tank. It also may be an easier sell to Congress, which balked for years at the last quota increase agreed in 2010 that boosted China's and other emerging markets' voting power and shrunk that of European countries. Those changes were not implemented until 2016 after Congress approved it in a spending bill.

IMF sidesteps clash with US over funding, delays shareholding changes to 2023

United States&nbsp;Treasury Secretary Steven Mnuchin on Friday said he welcomes a proposal to double the size of the International Monetary Fund's $250 billion&nbsp;crisis lending fund as part of a deal to maintain overall IMF resources.

Mnuchin, in a statement to the IMF's steering committee, said he backed the funding increase to ensure the global lender remained adequately resourced to respond to potential crises over the medium term.

He also called for various reforms to streamline the fund's costs, modernise salaries and benefits, and adopt a more independent, centralised risk management system.

United States Treasury Secretary Steven Mnuchin on Friday said he welcomes a proposal to double the size of the International Monetary Fund's $250 billion crisis lending fund as part of a deal to maintain overall IMF resources.

United States Treasury Secretary Steven Mnuchin on Friday said he welcomes a proposal to double the size of the International Monetary Fund's $250 billion crisis lending fund as part of a deal to maintain overall IMF resources. Mnuchin, in a statement to the IMF's steering committee, said he backed the funding increase to ensure the global lender remained adequately resourced to respond to potential crises over the medium term. He also called for various reforms to streamline the fund's costs, modernise salaries and benefits, and adopt a more independent, centralised risk management system.

Steven Mnuchin backs proposal to double International Monetary Fund's crisis fund

India remains the fastest growing economy in the world and the central government is making every effort to spur growth, Union Finance Minister Nirmala Sitharaman said on Thursday, days after the International Monetary Fund (IMF) slashed the country's growth projection to 6.1 percent.

Speaking to reporters here on the sidelines of the annual meeting of the IMF and the World Bank, Sitharaman said she "cannot underestimate" the potential that India is showing despite the current global scenario.

"The IMF reduces the growth for all global economies. It reduces the growth for India too. But even otherwise, India is still growing as the fastest growing economy," Sitharaman said.

"The point cannot be missed that India is still growing the fastest in the given global scenario. I wish it can be more. I wish it can grow faster, and I will make every effort to make it grow faster. But the fact remains that it is still growing faster," she said.

"Obviously the narrative is that it is not growing as much as it used to grow earlier, it is not (growing at) eight (percent), it is not (growing at) seven (percent), yes all this are very important, but I don't want to underestimate the potential that India is showing even in this adverse circumstance," the minister added.

The IMF on Tuesday slashed India's economic growth projection for 2019 to 6.1 per cent but said that it might pick up to 7 per cent in 2020.

In July this year, the multilateral agency had put India's growth rate at 7 per cent for the current fiscal owing to "weaker-than-expected outlook" of domestic demand. In April, it had said that India will grow at 7.3 per cent in 2019.&nbsp; 
&nbsp;

India remains the fastest growing economy in the world and the central government is making every effort to spur growth, Union Finance Minister Nirmala Sitharaman said on Thursday, days after the International Monetary Fund (IMF) slashed the country's growth projection to 6.

India remains the fastest growing economy in the world and the central government is making every effort to spur growth, Union Finance Minister Nirmala Sitharaman said on Thursday, days after the International Monetary Fund (IMF) slashed the country's growth projection to 6.1 percent. Speaking to reporters here on the sidelines of the annual meeting of the IMF and the World Bank, Sitharaman said she "cannot underestimate" the potential that India is showing despite the current global scenario. "The IMF reduces the growth for all global economies. It reduces the growth for India too. But even otherwise, India is still growing as the fastest growing economy," Sitharaman said. "The point cannot be missed that India is still growing the fastest in the given global scenario. I wish it can be more. I wish it can grow faster, and I will make every effort to make it grow faster. But the fact remains that it is still growing faster," she said. "Obviously the narrative is that it is not growing as much as it used to grow earlier, it is not (growing at) eight (percent), it is not (growing at) seven (percent), yes all this are very important, but I don't want to underestimate the potential that India is showing even in this adverse circumstance," the minister added. The IMF on Tuesday slashed India's economic growth projection for 2019 to 6.1 per cent but said that it might pick up to 7 per cent in 2020. In July this year, the multilateral agency had put India's growth rate at 7 per cent for the current fiscal owing to "weaker-than-expected outlook" of domestic demand. In April, it had said that India will grow at 7.3 per cent in 2019.

India remains fastest-growing economy in present global scenario, despite IMF projections: Sitharaman

The <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">world economy </a>is slowing to its weakest pace since the global <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">financial crisis</a>, amid continuing trade conflicts that have <a href="https://www.wionews.com/world/global-growth-fragile-under-threat-former-imf-head-christine-lagarde-250693">undercut business confidence</a> and investment, the IMF said Tuesday.

It warned that the outlook is beset by risks, and urged policymakers to work to find resolutions to trade disputes since there are limited tools to respond to a new crisis.

"With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," International Monetary Fund chief economist Gita Gopinath said in her introduction to the latest forecasts.

The IMF for the past year has every three months cut projected growth for 2019 as trade conflicts worsened.

In its latest World Economic Outlook, it trimmed the estimate by another two-tenths, to 3.0 per cent. The report also lowered the 2020 forecast by a tenth to 3.4 per cent.&nbsp;

"At three per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," Gopinath said.

In addition, the trade conflicts and a slowdown in auto sales worldwide means trade growth has slowed sharply, falling in the first half of the year to its weakest since 2012, with an estimated increase of just 1.1 per cent this year after a 3.6 per cent jump in 2018.

Running low on ammo

While the US economy also has been hit by uncertainty — largely created by President Donald Trump's trade offensive — the world's largest economy remains a bright spot on the global stage, the report said.

After upgrading its US outlook in July, the latest WEO reversed course and cutting the US forecast this year to 2.4 per cent — still above trend, but two-tenths below the July forecast.

In 2020, the IMF projects US GDP to expand by 2.1 per cent, unchanged from the prior report.

"For the United States, trade-related uncertainty has had negative effects on investment, but employment and consumption continue to be robust, buoyed also by policy stimulus," Gopinath said.

Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the downturn would have been worse, she said.&nbsp;

However, she cautioned that monetary policy "cannot be the only game in town" and governments, notably in countries like Germany, should take advantage of low rates to make investments to support growth.

"With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," Gopinath warned.

The US-China trade war alone is estimated to shrink the world economy by 0.8 per cent in 2020, the IMF said.

The fund warned that risks to the outlook predominate, and the uncertainty around trade policy -- which causes businesses to hold off on investments and undermines confidence — will take a larger chunk out of growth than the tariffs themselves

Slowing auto sales

"To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to an economic activity where needed," the report said.

But trade is not the only reason for the global slowdown: the report notes that in China's economy, for example, growth is moderating as intended amid slowing domestic demand.

Other major economies like Brazil, India, Mexico, Russia and South Africa are slowing this year due to "idiosyncratic reasons" but are expected to recover in 2020.

"A notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade," the IMF said, which in addition to the higher tariffs and trade uncertainty is the result of the contracting auto industry.&nbsp;

That slowdown has had an impact in Germany, China and India, the report said.

The world economy is slowing to its weakest pace since the global financial crisis, amid continuing trade conflicts that have undercut business confidence and investment, the IMF said Tuesday.

The world economy is slowing to its weakest pace since the global financial crisis, amid continuing trade conflicts that have undercut business confidence and investment, the IMF said Tuesday. It warned that the outlook is beset by risks, and urged policymakers to work to find resolutions to trade disputes since there are limited tools to respond to a new crisis. "With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," International Monetary Fund chief economist Gita Gopinath said in her introduction to the latest forecasts. The IMF for the past year has every three months cut projected growth for 2019 as trade conflicts worsened. In its latest World Economic Outlook, it trimmed the estimate by another two-tenths, to 3.0 per cent. The report also lowered the 2020 forecast by a tenth to 3.4 per cent. "At three per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," Gopinath said. In addition, the trade conflicts and a slowdown in auto sales worldwide means trade growth has slowed sharply, falling in the first half of the year to its weakest since 2012, with an estimated increase of just 1.1 per cent this year after a 3.6 per cent jump in 2018. Running low on ammo While the US economy also has been hit by uncertainty — largely created by President Donald Trump's trade offensive — the world's largest economy remains a bright spot on the global stage, the report said. After upgrading its US outlook in July, the latest WEO reversed course and cutting the US forecast this year to 2.4 per cent — still above trend, but two-tenths below the July forecast. In 2020, the IMF projects US GDP to expand by 2.1 per cent, unchanged from the prior report. "For the United States, trade-related uncertainty has had negative effects on investment, but employment and consumption continue to be robust, buoyed also by policy stimulus," Gopinath said. Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the downturn would have been worse, she said. However, she cautioned that monetary policy "cannot be the only game in town" and governments, notably in countries like Germany, should take advantage of low rates to make investments to support growth. "With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," Gopinath warned. The US-China trade war alone is estimated to shrink the world economy by 0.8 per cent in 2020, the IMF said. The fund warned that risks to the outlook predominate, and the uncertainty around trade policy -- which causes businesses to hold off on investments and undermines confidence — will take a larger chunk out of growth than the tariffs themselves Slowing auto sales "To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to an economic activity where needed," the report said. But trade is not the only reason for the global slowdown: the report notes that in China's economy, for example, growth is moderating as intended amid slowing domestic demand. Other major economies like Brazil, India, Mexico, Russia and South Africa are slowing this year due to "idiosyncratic reasons" but are expected to recover in 2020. "A notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade," the IMF said, which in addition to the higher tariffs and trade uncertainty is the result of the contracting auto industry. That slowdown has had an impact in Germany, China and India, the report said.

World economy at its weakest pace since global financial crisis: International Monetary Fund

Despite support from China and <a href="https://www.wionews.com/south-asia/saudi-crown-prince-expected-to-seal-multi-billion-dollar-deals-in-pakistan-196969">Saudi Arabia</a> and a huge <a href="https://www.wionews.com/south-asia/imf-approves-6-billion-loan-for-pakistan-to-right-the-nations-economy-232863">IMF loan that helped Pakistan</a> to address its immediate economic crisis, the United Nations on Thursday said that the country is still in the midst of a crisis.

In a brief comment on Pakistan in the Asia section, UN's Trade and Development Report 2019 said that "Pakistan is in the midst of a crisis" as the growth rate has halved, the balance of payments is in poor shape, the rupee has depreciated significantly and external debt is large and rising, reported The Dawn.

Meanwhile, the report also stated that slowdown observed in the rate of growth of the Chinese economy from 2017 onwards is projected to intensify in 2019 because of the trade and technology tensions.

The slowing of China's trade growth has a major impact on other East Asian and South-East Asian economies since it is likely that the integrated value chains spread across these economies and linked to China would be disrupted, the report noted.

The report further stated that public banking should be given back its traditional, bigger role if the environmental and economic landscape is to be transformed by 2030.

The annual fiscal deficit of <a href="https://www.wionews.com/videos/pakistans-belly-dance-formula-to-revive-economy-248440">Pakistan</a>&nbsp;to the highest in the last three decades at 8.9 per cent for the financial year 2018-19.

The fiscal deficit is a difference between revenues and expenditures of the federal government.

Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country.

In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket.

Despite support from China and Saudi Arabia and a huge IMF loan that helped Pakistan to address its immediate economic crisis, the United Nations on Thursday said that the country is still in the midst of a crisis.

Despite support from China and Saudi Arabia and a huge IMF loan that helped Pakistan to address its immediate economic crisis, the United Nations on Thursday said that the country is still in the midst of a crisis. In a brief comment on Pakistan in the Asia section, UN's Trade and Development Report 2019 said that "Pakistan is in the midst of a crisis" as the growth rate has halved, the balance of payments is in poor shape, the rupee has depreciated significantly and external debt is large and rising, reported The Dawn. Meanwhile, the report also stated that slowdown observed in the rate of growth of the Chinese economy from 2017 onwards is projected to intensify in 2019 because of the trade and technology tensions. The slowing of China's trade growth has a major impact on other East Asian and South-East Asian economies since it is likely that the integrated value chains spread across these economies and linked to China would be disrupted, the report noted. The report further stated that public banking should be given back its traditional, bigger role if the environmental and economic landscape is to be transformed by 2030. The annual fiscal deficit of Pakistan to the highest in the last three decades at 8.9 per cent for the financial year 2018-19. The fiscal deficit is a difference between revenues and expenditures of the federal government. Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket.

Pakistan in midst of economic crisis despite support from China, IMF: U.N.

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">International Monetary Fund</a>, which would make her the first person from an emerging economy to head the global lender.

A centre-right politician who grew up in Bulgaria under communism, Georgieva has built a reputation during her time at the&nbsp;World&nbsp;Bank&nbsp;- where she has been on a leave of absence from her post as the Chief Executive Officer during the IMF nomination process - and the European Commission as a tenacious straight-shooter, champion of gender equality and leader in the global fight against climate change.

She will face a host of challenges as the head of the IMF, the&nbsp;world's crisis lender with $1 Trillion in firepower, including a global economic slowdown triggered by escalating trade tensions between the United States and China.

In addition, the United States, which represents the largest voting bloc on the IMF board, has withdrawn from multilateral accords, and risks are growing in emerging markets like Argentina, which last year received a $57 billion bailout, the IMF's largest ever.

The IMF's executive board interviewed Georgieva, 65, the sole nominee for the job, on Tuesday, and is due to vote on her nomination on Wednesday.

The vote is largely ceremonial. Georgieva, backed by the French President Emmanuel Macron, last month won support from the rest of the European Union, as well as tacit backing from the United States.

An IMF board source told Reuters that Georgieva was ready for the job. "She has convinced the board that she is the leader that the institution needs and will be a strong advocate for the multilateral system," the source said, speaking on the condition of anonymity because the board’s deliberations are not public.

Her likely confirmation has spawned great pride in her home country, with some newspapers lauding it as evidence of both Georgieva's own qualities and as a diplomatic success.

"Only 20 years ago, Bulgaria was among the countries with an IMF rescue programme," the leading financial newspaper Kapital said earlier this month. "The nomination of the former Bulgarian EU commissioner should be seen not only as her personal acknowledgement&nbsp;but as a diplomatic success for the country."&nbsp;

Georgieva will replace Christine Lagarde, who became the first woman to head the <a href="https://www.wionews.com/south-east-asia/international-monetary-fund-to-consider-three-year-extended-fund-facility-of-6-billion-for-pakistan-231072">IMF</a> when she took the helm in 2011. Lagarde, 63, guided the lender through the European sovereign debt crisis, which began about a month after she took office. She is departing to head the European Central&nbsp;Bank.

Before her appointment at the&nbsp;<a href="https://www.wionews.com/world/international-monetary-fund-downgrades-world-growth-warns-of-precarious-2020-238104">World&nbsp;Bank</a>, Georgieva held numerous senior European Commission posts, including the budget commissioner, and has deep knowledge of emerging market countries served by the&nbsp;World&nbsp;Bank.

Scott Morris, a senior fellow at the Center for Global Development, said Georgieva quickly made an impact after assuming the No. 2 role at the&nbsp;World&nbsp;Bank&nbsp;in early 2017. She pushed for consensus on a $13 billion capital increase and reform package agreed last year. Under the reforms, lending to China and other wealthier developing countries will decrease with more resources going to needier countries.

"She was able to bring together a diverse group of shareholders. That's her strength," said Morris, a former US&nbsp;Treasury official. "What's less clear is how she will handle the day to day business of the fund, that business being the crisis moments. It's harder to see how she will respond in a crisis."

Morris said Lagarde was successful in that she was not viewed as representing European interests, which helped her navigate the Greek debt crisis. Georgieva will have to take a similar multilateral approach, keeping her focus on the interests of the institution and individual countries.

"No one thought of Lagarde as a European&nbsp;chief&nbsp;executive," Morris said. "She rose above that."

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the International Monetary Fund, which would make her the first person from an emerging economy to head the global lender.

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the International Monetary Fund, which would make her the first person from an emerging economy to head the global lender. A centre-right politician who grew up in Bulgaria under communism, Georgieva has built a reputation during her time at the World Bank - where she has been on a leave of absence from her post as the Chief Executive Officer during the IMF nomination process - and the European Commission as a tenacious straight-shooter, champion of gender equality and leader in the global fight against climate change. She will face a host of challenges as the head of the IMF, the world's crisis lender with $1 Trillion in firepower, including a global economic slowdown triggered by escalating trade tensions between the United States and China. In addition, the United States, which represents the largest voting bloc on the IMF board, has withdrawn from multilateral accords, and risks are growing in emerging markets like Argentina, which last year received a $57 billion bailout, the IMF's largest ever. The IMF's executive board interviewed Georgieva, 65, the sole nominee for the job, on Tuesday, and is due to vote on her nomination on Wednesday. The vote is largely ceremonial. Georgieva, backed by the French President Emmanuel Macron, last month won support from the rest of the European Union, as well as tacit backing from the United States. An IMF board source told Reuters that Georgieva was ready for the job. "She has convinced the board that she is the leader that the institution needs and will be a strong advocate for the multilateral system," the source said, speaking on the condition of anonymity because the board’s deliberations are not public. Her likely confirmation has spawned great pride in her home country, with some newspapers lauding it as evidence of both Georgieva's own qualities and as a diplomatic success. "Only 20 years ago, Bulgaria was among the countries with an IMF rescue programme," the leading financial newspaper Kapital said earlier this month. "The nomination of the former Bulgarian EU commissioner should be seen not only as her personal acknowledgement but as a diplomatic success for the country." Georgieva will replace Christine Lagarde, who became the first woman to head the IMF when she took the helm in 2011. Lagarde, 63, guided the lender through the European sovereign debt crisis, which began about a month after she took office. She is departing to head the European Central Bank. Before her appointment at the World Bank, Georgieva held numerous senior European Commission posts, including the budget commissioner, and has deep knowledge of emerging market countries served by the World Bank. Scott Morris, a senior fellow at the Center for Global Development, said Georgieva quickly made an impact after assuming the No. 2 role at the World Bank in early 2017. She pushed for consensus on a $13 billion capital increase and reform package agreed last year. Under the reforms, lending to China and other wealthier developing countries will decrease with more resources going to needier countries. "She was able to bring together a diverse group of shareholders. That's her strength," said Morris, a former US Treasury official. "What's less clear is how she will handle the day to day business of the fund, that business being the crisis moments. It's harder to see how she will respond in a crisis." Morris said Lagarde was successful in that she was not viewed as representing European interests, which helped her navigate the Greek debt crisis. Georgieva will have to take a similar multilateral approach, keeping her focus on the interests of the institution and individual countries. "No one thought of Lagarde as a European chief executive," Morris said. "She rose above that."

World Bank's Georgieva to be first International Monetary Fund chief from emerging economy

The International Monetary Fund (IMF) on Wednesday announced that it would extend a bailout package worth $6&nbsp;billion to help Pakistan restore an inclusive and sustainable growth of its plunging economy.

In a video shared on its official Twitter page, the global money lender said that large deficits in the past, the high cost to buy a rupee, and lack of reforms have undermined the growth of the cash-strapped economy.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
The IMF is providing $6 billion USD to help <a href="https://twitter.com/hashtag/Pakistan?src=hash&amp;ref_src=twsrc%5Etfw">#Pakistan</a> restore inclusive and sustainable growth. What are the program priorities? Watch the video to learn more. <a href="https://t.co/XGfEjBGUgF">pic.twitter.com/XGfEjBGUgF</a>
— IMF (@IMFNews) <a href="https://twitter.com/IMFNews/status/1174277177711501312?ref_src=twsrc%5Etfw">September 18, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

In addition, significant government borrowing had further made it difficult to pay down the debt, added the IMF.

The global lending agency said that "to restore strong and sustainable growth, Pakistan has developed a bold 3-year program to first, allow the market to drive a fair value of the rupee helping to restore competitiveness and support exports; second, reducing debt by ensuring that more people pay taxes and the rich pay their fair share; and third, protecting vulnerable groups by increasing spending on healthcare and education."

It said the loan would further accelerate reforms to encourage investment to help companies thrive and create jobs.

"This will help Pakistan's economy reach its full potential," the global money lender wrote on Twitter.

To support its ailing economy, the country had signed a similar $6 billion loan from the IMF earlier this year.

On Monday, an eight-member IMF delegation arrived in Islamabad to review Pakistan's economic progress two months after signing the deal with focus on the country's failure to achieve the set revenue collection target, Arab News reported.

Pakistan's trade deficit shrank by nearly 38 per cent in the first two months of the current fiscal year, driven largely by a decline in imports of non-essential luxury items.

The constant decline in the trade deficit showed that imports have also plummeted despite a meagre growth in exports.

Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country.

In fact, the opposite has happened. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket.

The International Monetary Fund (IMF) on Wednesday announced that it would extend a bailout package worth $6 billion to help Pakistan restore an inclusive and sustainable growth of its plunging economy.

The International Monetary Fund (IMF) on Wednesday announced that it would extend a bailout package worth $6 billion to help Pakistan restore an inclusive and sustainable growth of its plunging economy. In a video shared on its official Twitter page, the global money lender said that large deficits in the past, the high cost to buy a rupee, and lack of reforms have undermined the growth of the cash-strapped economy. The IMF is providing $6 billion USD to help #Pakistan restore inclusive and sustainable growth. What are the program priorities? Watch the video to learn more. pic.twitter.com/XGfEjBGUgF — IMF (@IMFNews) September 18, 2019 × In addition, significant government borrowing had further made it difficult to pay down the debt, added the IMF. The global lending agency said that "to restore strong and sustainable growth, Pakistan has developed a bold 3-year program to first, allow the market to drive a fair value of the rupee helping to restore competitiveness and support exports; second, reducing debt by ensuring that more people pay taxes and the rich pay their fair share; and third, protecting vulnerable groups by increasing spending on healthcare and education." It said the loan would further accelerate reforms to encourage investment to help companies thrive and create jobs. "This will help Pakistan's economy reach its full potential," the global money lender wrote on Twitter. To support its ailing economy, the country had signed a similar $6 billion loan from the IMF earlier this year. On Monday, an eight-member IMF delegation arrived in Islamabad to review Pakistan's economic progress two months after signing the deal with focus on the country's failure to achieve the set revenue collection target, Arab News reported. Pakistan's trade deficit shrank by nearly 38 per cent in the first two months of the current fiscal year, driven largely by a decline in imports of non-essential luxury items. The constant decline in the trade deficit showed that imports have also plummeted despite a meagre growth in exports. Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country. In fact, the opposite has happened. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket.

International Monetary Fund to extend $6 billion bailout package to restore Pakistan's plunging economy

The European Parliament on Tuesday approved <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">outgoing IMF chief</a> Christine Lagarde as the next boss of the European Central Bank, which last week announced massive stimulus for the sluggish eurozone despite divisions among its governors.

<a href="https://www.wionews.com/world/lagarde-temporarily-steps-down-as-imf-chief-american-economist-david-lipton-named-interim-leader-232570">Lagarde</a>, who was absent for the vote, won backing from 394 MEPs, with 206 votings against and 49 abstaining in a secret ballot.

Some criticised her not turning up.

The parliament's green light is just a recommendation.

The final decision on her appointment is up to EU leaders in a mid-October summit.

She is expected to easily clinch that confirmation as the leaders put her forward for the ECB post back in July.

Lagarde, a former French economy minister and head of the International Monetary Fund for the past eight years, is expected to largely follow the course set by departing ECB president Mario Draghi.

Draghi was hailed seven years ago for saving the eurozone from the debilitating crisis by vowing "the ECB is ready to do whatever it takes".

But his decision last Thursday to have the ECB intervene again with quantitative easing (QE) from November and a cut to the interest paid on banks' deposits deeper into negative territory has ruffled the feathers of some EU states.

Germany and the Netherlands notably accused Draghi of going too far. Sources told AFP that around 10 of the 25 ECB governors were against relaunching QE.

Draghi had underlined three challenges facing the ECB and its goal of price stability: a slowing eurozone economy, looming trade protectionism and Brexit, and the bank's degrading economic forecasts.

He is to leave his job to Lagarde after hosting a last monetary policy meeting in October.

The European Parliament on Tuesday approved outgoing IMF chief Christine Lagarde as the next boss of the European Central Bank, which last week announced massive stimulus for the sluggish eurozone despite divisions among its governors.

The European Parliament on Tuesday approved outgoing IMF chief Christine Lagarde as the next boss of the European Central Bank, which last week announced massive stimulus for the sluggish eurozone despite divisions among its governors. Lagarde, who was absent for the vote, won backing from 394 MEPs, with 206 votings against and 49 abstaining in a secret ballot. Some criticised her not turning up. The parliament's green light is just a recommendation. The final decision on her appointment is up to EU leaders in a mid-October summit. She is expected to easily clinch that confirmation as the leaders put her forward for the ECB post back in July. Lagarde, a former French economy minister and head of the International Monetary Fund for the past eight years, is expected to largely follow the course set by departing ECB president Mario Draghi. Draghi was hailed seven years ago for saving the eurozone from the debilitating crisis by vowing "the ECB is ready to do whatever it takes". But his decision last Thursday to have the ECB intervene again with quantitative easing (QE) from November and a cut to the interest paid on banks' deposits deeper into negative territory has ruffled the feathers of some EU states. Germany and the Netherlands notably accused Draghi of going too far. Sources told AFP that around 10 of the 25 ECB governors were against relaunching QE. Draghi had underlined three challenges facing the ECB and its goal of price stability: a slowing eurozone economy, looming trade protectionism and Brexit, and the bank's degrading economic forecasts. He is to leave his job to Lagarde after hosting a last monetary policy meeting in October.

European Parliament approves Lagarde as next European Central Bank chief

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies.

"Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters at a news conference.

The economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago, as per the government data.

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report.

The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.

The previous low was recorded at 4.9 per cent in April to June 2012-13. Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.&nbsp;

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies.

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies. "Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters at a news conference. The economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago, as per the government data. The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report. The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement. The previous low was recorded at 4.9 per cent in April to June 2012-13. Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.

India's economic growth is 'much weaker' than expected: International Monetary Fund

In a bid to secure its plunging economy, Pakistan has been desperately trying to garner more investments and bailout packages from various entities.

The huge debt pile-up, however, would gradually force a slowdown in new projects that may push the country into a deeper economic crisis.

Recently, the International Monetary Fund (IMF) has decided to send its team this month for suggesting ways and means curtail the yawning budget deficit being faced by cash-strapped Pakistan.

Earlier in July, the global money-lender had approved a six billion US dollars&nbsp;loan to Pakistan, which is facing significant economic challenges in the backdrop of the country's large fiscal deficits and loose monetary policies.

The IMF team will discuss fiscal issues with special focus to restrict the target of primary deficit within the desired limits, according to Pakistani media reports.

In addition, the Chinese Ambassador to Pakistan, Yao Jing, has also reportedly announced that Beijing is planning to invest one billion US dollars in development projects in Pakistan, especially the CPEC that connects Gwadar Port in Balochistan with China's Xinjiang province.

"Pakistan borrowed $16B from abroad in the 2018-19 fiscal year to avoid running out of foreign currency. 42 per cent&nbsp;of that, or $6.7B, came from China. The government also approached IMF, which in July approved a $6B bailout," Jeff M. Smith, a research scholar from South Asia-Heritage Foundation, said on Twitter.

"The huge debt pile is forcing a slowdown in new projects," Smith added. Previously, the IMF had pointed out that dull progress in structural progress continued to hamper investment and allowed "inefficient state-owned entities (SOEs) to linger and a large informal economy to expand".

Citing Pakistan's finance ministry's documents, Express Tribune reported that foreign loan disbursements between July 2018 and April 2019 of the current financial year showed loans for the Karachi Nuclear Power Plants, known as K2 and K3, and China SAFE deposits as part of federal debt obligations.

Also, countries such as the UAE and Saudi Arabia have given bailout packages to the cash-strapped country in a bid to tackle its ballooning balance-of-payments crisis.

The annual fiscal deficit of Pakistan rose to the highest in the last three decades at 8.9 per cent for the financial year 2018-19. The fiscal deficit is a difference between the revenues and expenditures of the federal government.

Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country.

In fact, the opposite has happened. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in the common man's pocket. Pakistan had received the first tranche of the loan worth $991.4 million from the IMF in May.

In a bid to secure its plunging economy, Pakistan has been desperately trying to garner more investments and bailout packages from various entities. The huge debt pile-up, however, would gradually force a slowdown in new projects that may push the country into a deeper economic crisis.

In a bid to secure its plunging economy, Pakistan has been desperately trying to garner more investments and bailout packages from various entities. The huge debt pile-up, however, would gradually force a slowdown in new projects that may push the country into a deeper economic crisis. Recently, the International Monetary Fund (IMF) has decided to send its team this month for suggesting ways and means curtail the yawning budget deficit being faced by cash-strapped Pakistan. Earlier in July, the global money-lender had approved a six billion US dollars loan to Pakistan, which is facing significant economic challenges in the backdrop of the country's large fiscal deficits and loose monetary policies. The IMF team will discuss fiscal issues with special focus to restrict the target of primary deficit within the desired limits, according to Pakistani media reports. In addition, the Chinese Ambassador to Pakistan, Yao Jing, has also reportedly announced that Beijing is planning to invest one billion US dollars in development projects in Pakistan, especially the CPEC that connects Gwadar Port in Balochistan with China's Xinjiang province. "Pakistan borrowed $16B from abroad in the 2018-19 fiscal year to avoid running out of foreign currency. 42 per cent of that, or $6.7B, came from China. The government also approached IMF, which in July approved a $6B bailout," Jeff M. Smith, a research scholar from South Asia-Heritage Foundation, said on Twitter. "The huge debt pile is forcing a slowdown in new projects," Smith added. Previously, the IMF had pointed out that dull progress in structural progress continued to hamper investment and allowed "inefficient state-owned entities (SOEs) to linger and a large informal economy to expand". Citing Pakistan's finance ministry's documents, Express Tribune reported that foreign loan disbursements between July 2018 and April 2019 of the current financial year showed loans for the Karachi Nuclear Power Plants, known as K2 and K3, and China SAFE deposits as part of federal debt obligations. Also, countries such as the UAE and Saudi Arabia have given bailout packages to the cash-strapped country in a bid to tackle its ballooning balance-of-payments crisis. The annual fiscal deficit of Pakistan rose to the highest in the last three decades at 8.9 per cent for the financial year 2018-19. The fiscal deficit is a difference between the revenues and expenditures of the federal government. Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country. In fact, the opposite has happened. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in the common man's pocket. Pakistan had received the first tranche of the loan worth $991.4 million from the IMF in May.

More loans may lead to slowdown of Pakistan's crumbling economy

US tariffs on China won't fix the trade deficit, and neither will weakening the <a href="https://www.wionews.com/business-economy/apple-ceo-warns-trump-about-china-tariffs-samsung-competition-243971">US dollar through</a> interest rate cuts, International Monetary Fund economists said Wednesday.

In unusually blunt language, the blog post seemed targeted straight at <a href="https://www.wionews.com/opinions/donald-trumps-threat-to-leave-world-trade-organisation-not-credible-244304">President Donald Trump</a> who has loudly and constantly demanded the Federal Reserve cut interest rates to weaken the US dollar and juice the economy, while imposing round after round of tariffs on China to reduce the deficit he describes as theft.

But the US policy moves are counterproductive, won't achieve the desired results, and will slow the global economy, IMF chief economist Gita Gopinath said.

"Higher bilateral tariffs are unlikely to reduce aggregate trade imbalances, as they mainly divert trade to other countries," Gopinath warned in a blog titled "Taming the Currency Hype," co-authored by fellow IMF researchers Gustavo Adler and Luis Cubeddu.

"Instead, they are likely to harm both domestic and global growth by sapping business confidence and investment and disrupting global supply chains, while raising costs for producers and consumers."

And any plans to weaken a country's own currency value "are cumbersome to implement and likely to be ineffective," they said, adding that pressure on the central bank will not achieve that goal either.

The authors warned that "one should not put too much stock in the view that easing monetary policy can weaken a country's currency enough to bring a lasting improvement in its trade balance."

"Monetary policy alone is unlikely to induce the large and persistent devaluations that are needed to bring that result ... especially within a 12-month period," they said.

With the US presidential election coming in November 2020, Trump is especially focused on the next 12 months.

With the IMF and others warning that his trade war is slowing global growth, and as warning signs of a US recession flashing red, Trump has doubled down on his attacks on the Federal Reserve and on China.

And he and his advisors have been talking up the economy to counteract the increasing jitters on US stock markets.

But Trump confirmed Tuesday he is considering some kind of tax cuts to boost the economy. However, he said "We're far from the recession. If the Fed would do its job, I think it would have a tremendous spurt of growth."

Just last month, the IMF again downgraded its global growth forecast, and said the trade tensions make for a "precarious" 2020, and said the tariffs threaten to exacerbate the slowdown of China's economy.

The IMF blog repeats much information released in separate reports, but highlights the key points and brings them together.

While economic theory states that a weaker currency tends to make a country's exports cheaper and more competitive, the IMF notes that many products are priced in US dollars on the global marketplace.

So in reality, "US importers and consumers are bearing the burden of the tariffs. The reason: the stronger US currency has had a minimal impact thus far on the dollar prices Chinese exporters receive because of dollar invoicing."

US tariffs on China won't fix the trade deficit, and neither will weakening the US dollar through interest rate cuts, International Monetary Fund economists said Wednesday.

US tariffs on China won't fix the trade deficit, and neither will weakening the US dollar through interest rate cuts, International Monetary Fund economists said Wednesday. In unusually blunt language, the blog post seemed targeted straight at President Donald Trump who has loudly and constantly demanded the Federal Reserve cut interest rates to weaken the US dollar and juice the economy, while imposing round after round of tariffs on China to reduce the deficit he describes as theft. But the US policy moves are counterproductive, won't achieve the desired results, and will slow the global economy, IMF chief economist Gita Gopinath said. "Higher bilateral tariffs are unlikely to reduce aggregate trade imbalances, as they mainly divert trade to other countries," Gopinath warned in a blog titled "Taming the Currency Hype," co-authored by fellow IMF researchers Gustavo Adler and Luis Cubeddu. "Instead, they are likely to harm both domestic and global growth by sapping business confidence and investment and disrupting global supply chains, while raising costs for producers and consumers." And any plans to weaken a country's own currency value "are cumbersome to implement and likely to be ineffective," they said, adding that pressure on the central bank will not achieve that goal either. The authors warned that "one should not put too much stock in the view that easing monetary policy can weaken a country's currency enough to bring a lasting improvement in its trade balance." "Monetary policy alone is unlikely to induce the large and persistent devaluations that are needed to bring that result ... especially within a 12-month period," they said. With the US presidential election coming in November 2020, Trump is especially focused on the next 12 months. With the IMF and others warning that his trade war is slowing global growth, and as warning signs of a US recession flashing red, Trump has doubled down on his attacks on the Federal Reserve and on China. And he and his advisors have been talking up the economy to counteract the increasing jitters on US stock markets. But Trump confirmed Tuesday he is considering some kind of tax cuts to boost the economy. However, he said "We're far from the recession. If the Fed would do its job, I think it would have a tremendous spurt of growth." Just last month, the IMF again downgraded its global growth forecast, and said the trade tensions make for a "precarious" 2020, and said the tariffs threaten to exacerbate the slowdown of China's economy. The IMF blog repeats much information released in separate reports, but highlights the key points and brings them together. While economic theory states that a weaker currency tends to make a country's exports cheaper and more competitive, the IMF notes that many products are priced in US dollars on the global marketplace. So in reality, "US importers and consumers are bearing the burden of the tariffs. The reason: the stronger US currency has had a minimal impact thus far on the dollar prices Chinese exporters receive because of dollar invoicing."

US importers, consumers bearing burden of tariffs: IMF chief economist Gita Gopinath in blog

Trade tariffs imposed by the <a href="https://www.wionews.com/business-economy/oil-prices-rise-escalating-us-china-trade-war-caps-gains-240974">United States against China</a> will moderately slow the country's <a href="https://www.wionews.com/world/us-president-trump-says-us-not-ready-to-make-trade-deal-with-china-241860">economic growth</a> this year, the International Monetary Fund (IMF) said on Friday.

"Growth is projected to moderate to 6.2 per cent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on USD 200 billion of Chinese exports," the IMF said in its report.

The global monetary body called on Beijing to resolve tensions with Washington "through a comprehensive agreement that avoids undermining the international system".

The IMF said that the Chinese economy is facing external headwinds and an uncertain environment. It added that rising food prices led to inflation, which is expected to remain at 2.5 per cent.

Meanwhile, the IMF found progress in China's reforms in key economic areas.

"The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said.

"Opening up continued, with decreases in tariffs, the passage of new foreign investment law, and revisions to the negative list for foreign investment entry," it added.&nbsp;

Moreover, the IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Trade tariffs imposed by the United States against China will moderately slow the country's economic growth this year, the International Monetary Fund (IMF) said on Friday.

Trade tariffs imposed by the United States against China will moderately slow the country's economic growth this year, the International Monetary Fund (IMF) said on Friday. "Growth is projected to moderate to 6.2 per cent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on USD 200 billion of Chinese exports," the IMF said in its report. The global monetary body called on Beijing to resolve tensions with Washington "through a comprehensive agreement that avoids undermining the international system". The IMF said that the Chinese economy is facing external headwinds and an uncertain environment. It added that rising food prices led to inflation, which is expected to remain at 2.5 per cent. Meanwhile, the IMF found progress in China's reforms in key economic areas. "The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said. "Opening up continued, with decreases in tariffs, the passage of new foreign investment law, and revisions to the negative list for foreign investment entry," it added. Moreover, the IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Trade war with the US to moderately slow down China's economic growth in 2019: International Monetary Fund

The International Monetary Fund on Friday stood by its assessment that the value of China's yuan was largely in line with economic fundamentals, but an IMF official said the fund was encouraging China to pursue a more flexible exchange rate with less intervention.

James Daniel, director of the IMF's China department, said that an assessment of China's economic policies found the yuan exchange rate in 2018 to be "not significantly over-valued or under-valued."

The IMF's views on the yuan are at odds with those of its largest shareholder, the United States, which this week declared China a, currency manipulator&nbsp;after it allowed the yuan to slip below 7 to the dollar to 11-year lows.

<a href="https://www.wionews.com/world/us-government-to-soon-run-out-cash-treasury-secretary-steven-mnuchin-235422">US Treasury Secretary Steven Mnuchin </a>is seeking to engage the IMF to help correct&nbsp;an unfair trade advantage from Beijing's currency actions, but Daniel declined to say how the IMF was responding to the request.

"Our discussions with the US treasury are ongoing on a range of issues," Daniel told reporters on a conference call, echoing an earlier statement from an IMF spokesperson.

The IMF said in the report that a worsening of trade tensions with the United States could put <a href="https://www.wionews.com/opinions/belt-and-road-projects-china-expands-its-anti-corruption-campaign-238093">China's economic and financial stability at risk</a>, making new fiscal stimulus measures from the government warranted.

The IMF stated, if the United States were to impose 25per cent tariffs on a remaining $300 billion list of Chinese imports, this would reduce China's growth by around 0.8per cent points over the following 12 months, driven by a sharp fall in demand and a tightening of financial conditions. Negative global spillovers could be significant, it added.

Daniel said that a 10per cent tariff on this category of goods as US President Donald Trump intends to impose on Sept. 1 &nbsp;could result in a 0.3per cent point cut to growth.

Weighed down by weak demand at home and abroad, China's growth slowed to 6.2per cent in the second quarter, a near 30-year low.

More exchange rate flexibility could help China deal with these external pressures, freeing up monetary policy to deal with domestic demand conditions, Daniel said.

He also said the IMF was pressing China for structural reforms to its economy, including opening more sectors to foreign competition and reducing the role of the state in the certain industry goals also broadly sought by the Trump administration.

"We see continued rebalancing and opening up by China and increased exchange rate flexibility as being in China's interests and also benefiting the global economy."

IMF directors in a statement agreed with staff assessments that China's external position in 2018 was broadly in line with fundamentals.

But they also called for more transparency in China's exchange rate policies, the IMF said, with some seeking disclosures of China's foreign exchange market interventions.

The International Monetary Fund on Friday stood by its assessment that the value of China's yuan was largely in line with economic fundamentals, but an IMF official said the fund was encouraging China to pursue a more flexible exchange rate with less intervention.

The International Monetary Fund on Friday stood by its assessment that the value of China's yuan was largely in line with economic fundamentals, but an IMF official said the fund was encouraging China to pursue a more flexible exchange rate with less intervention. James Daniel, director of the IMF's China department, said that an assessment of China's economic policies found the yuan exchange rate in 2018 to be "not significantly over-valued or under-valued." The IMF's views on the yuan are at odds with those of its largest shareholder, the United States, which this week declared China a, currency manipulator after it allowed the yuan to slip below 7 to the dollar to 11-year lows. US Treasury Secretary Steven Mnuchin is seeking to engage the IMF to help correct an unfair trade advantage from Beijing's currency actions, but Daniel declined to say how the IMF was responding to the request. "Our discussions with the US treasury are ongoing on a range of issues," Daniel told reporters on a conference call, echoing an earlier statement from an IMF spokesperson. The IMF said in the report that a worsening of trade tensions with the United States could put China's economic and financial stability at risk, making new fiscal stimulus measures from the government warranted. The IMF stated, if the United States were to impose 25per cent tariffs on a remaining $300 billion list of Chinese imports, this would reduce China's growth by around 0.8per cent points over the following 12 months, driven by a sharp fall in demand and a tightening of financial conditions. Negative global spillovers could be significant, it added. Daniel said that a 10per cent tariff on this category of goods as US President Donald Trump intends to impose on Sept. 1 could result in a 0.3per cent point cut to growth. Weighed down by weak demand at home and abroad, China's growth slowed to 6.2per cent in the second quarter, a near 30-year low. More exchange rate flexibility could help China deal with these external pressures, freeing up monetary policy to deal with domestic demand conditions, Daniel said. He also said the IMF was pressing China for structural reforms to its economy, including opening more sectors to foreign competition and reducing the role of the state in the certain industry goals also broadly sought by the Trump administration. "We see continued rebalancing and opening up by China and increased exchange rate flexibility as being in China's interests and also benefiting the global economy." IMF directors in a statement agreed with staff assessments that China's external position in 2018 was broadly in line with fundamentals. But they also called for more transparency in China's exchange rate policies, the IMF said, with some seeking disclosures of China's foreign exchange market interventions.

IMF stands by yuan view; says China could need stimulus if trade war worsens

Pakistan's failure to exit from Financial Action Task Force's (FATF) grey list is <a href="https://www.wionews.com/south-asia/us-pushes-for-conditionality-in-imf-bailout-package-to-pakistan-228542">a risk to the recently approved International Monetary Fund (IMF) loan</a> worth USD six billion, said Teresa Daban Sanchez, IMF's Resident Representative for the country.

'Failure to exit from the FATF grey list is a risk to the recently approved $6 billion IMF deal...The IMF is responsible for the financial system stability and the FATF-related issues hamper taxation and undermine the banking system,' The Express Tribune quoted Sanchez as saying.

<a href="https://www.wionews.com/south-asia/pakistan-is-facing-economic-woes-due-to-fiscal-mismanagement-general-bajwa-231287">Pakistan is currently grappling with a debt-ridden economy</a>, having secured bailouts (including that from the IMF) to stay afloat. It has been warned by the FATF with repercussions which may include blacklisting if it fails to stop terror financing, amongst other things.

Sanchez further said that an exit from the FATF list is crucial for securing private sector credit to meet external financing needs.

She also added that the FATF greylisting 'undermines capital inflows in addition to affecting the private sector'.

'A potential blacklisting by FATF can result in a freeze of capital inflows to Pakistan, jeopardising the financing assurances under the programme', the Resident Representative stated.

The IMF official highlighted the need for Pakistan to exit from the FATF grey list ahead of the final review of the 27-point implementation plan by the FATF Plenary and the review of Pakistan's Mutual Evaluation by the Asia Pacific Group on Money Laundering.

'The IMF has an obligation to make sure that countries have legal, regulatory and financial frameworks that are compliant with the FATF`s AML/CFT regulations and this decision had been taken by the IMF`s Executive Board a few years ago' Sanchez said.

She also added that Pakistan had shared full details of the China-Pakistan Economic Corridor (CPEC) loans with IMF.

Pakistan's failure to exit from Financial Action Task Force's (FATF) grey list is a risk to the recently approved International Monetary Fund (IMF) loan worth USD six billion, said Teresa Daban Sanchez, IMF's Resident Representative for the country.

Pakistan's failure to exit from Financial Action Task Force's (FATF) grey list is a risk to the recently approved International Monetary Fund (IMF) loan worth USD six billion, said Teresa Daban Sanchez, IMF's Resident Representative for the country. 'Failure to exit from the FATF grey list is a risk to the recently approved $6 billion IMF deal...The IMF is responsible for the financial system stability and the FATF-related issues hamper taxation and undermine the banking system,' The Express Tribune quoted Sanchez as saying. Pakistan is currently grappling with a debt-ridden economy, having secured bailouts (including that from the IMF) to stay afloat. It has been warned by the FATF with repercussions which may include blacklisting if it fails to stop terror financing, amongst other things. Sanchez further said that an exit from the FATF list is crucial for securing private sector credit to meet external financing needs. She also added that the FATF greylisting 'undermines capital inflows in addition to affecting the private sector'. 'A potential blacklisting by FATF can result in a freeze of capital inflows to Pakistan, jeopardising the financing assurances under the programme', the Resident Representative stated. The IMF official highlighted the need for Pakistan to exit from the FATF grey list ahead of the final review of the 27-point implementation plan by the FATF Plenary and the review of Pakistan's Mutual Evaluation by the Asia Pacific Group on Money Laundering. 'The IMF has an obligation to make sure that countries have legal, regulatory and financial frameworks that are compliant with the FATF`s AML/CFT regulations and this decision had been taken by the IMF`s Executive Board a few years ago' Sanchez said. She also added that Pakistan had shared full details of the China-Pakistan Economic Corridor (CPEC) loans with IMF.

Pakistan's failure to exit from FATF grey list poses risk to IMF loan: Official

European Union governments will try on Friday to choose a candidate to lead the <a href="https://www.wionews.com/world/eu-members-yet-to-reach-consensus-on-imf-chief-to-replace-christine-lagarde-239949">International Monetary Fund</a> from a list of three names after two candidates pulled out of the race, but divisions could delay a solution.

The candidates now include Jeroen Dijsselbloem, the Dutch former head of eurozone finance ministers; Olli Rehn, the Finnish central bank governor; and Bulgaria's Kristalina Georgieva, the World Bank chief executive.

Nadia Calvino, the Spanish economy minister, quit the race on Friday after a first round of voting among representatives of the EU's 28 nations. Mario Centeno, the Portuguese chairman of eurozone finance ministers, withdrew on Thursday.

Britain opposed the plan to select a candidate now, saying it was "premature" and did not allow London enough time to propose one of its own, according to a confidential note seen by Reuters.

Candidates for the head of the Washington-based IMF can be fielded until September&nbsp;6. French Finance Minister Bruno Le Maire is leading the process to select a European candidate.

The top job at the world lender has historically been filled by a European, but candidates from elsewhere may gain traction if Europe split.

The<a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536"> former IMF chief, France's Christine Lagarde</a>, resigned in July after EU leaders chose her to replace Mario Draghi as European Central Bank president.

Divisions

Northern European countries prefer Dijsselbloem or Rehn; southern and eastern states are seen pushing for Georgieva, one European official said.

Since an informal compromise was impossible, France decided to push for a vote. A candidate who obtains 55% of the votes of the 28 EU states, representing at least 65% of its population, will win.

The IMF chief should have a proven understanding of how the fund works, a commitment to multilateral organisations and be an effective communicator, the IMF board said. All three European candidates qualify.

Dijsselbloem has steered the eurozone out of the debt crisis, orchestrating with the IMF the bailout of Greece, Cyprus and Spanish banks. But he is opposed by high-debt EU countries for the austerity measures attached to the rescues.

Georgieva, 65, has had a long career at the World Bank, the IMF's twin organisation, but her candidacy would force a change in IMF rules that require the managing director to be less than 65 years old.

Rehn has held top economic jobs at the European Commission and now at the Finnish central bank.

New rounds of voting could be necessary to choose the European candidate.

"It is a mathematical possibility that no-one will make it today," one official involved in the process said. "But I think at the end of the day after a lot of arm-twistings they will come up with one."

Centeno said on Thursday he was pulling out of the race "in this stage of the process", adding he would be available if needed for a compromise solution.

Britain did not field a candidate because it could not come up with a name on time, London said in a note sent to France. A new British government led by Boris Johnson was formed only last week.

European Union governments will try on Friday to choose a candidate to lead the International Monetary Fund from a list of three names after two candidates pulled out of the race, but divisions could delay a solution.

European Union governments will try on Friday to choose a candidate to lead the International Monetary Fund from a list of three names after two candidates pulled out of the race, but divisions could delay a solution. The candidates now include Jeroen Dijsselbloem, the Dutch former head of eurozone finance ministers; Olli Rehn, the Finnish central bank governor; and Bulgaria's Kristalina Georgieva, the World Bank chief executive. Nadia Calvino, the Spanish economy minister, quit the race on Friday after a first round of voting among representatives of the EU's 28 nations. Mario Centeno, the Portuguese chairman of eurozone finance ministers, withdrew on Thursday. Britain opposed the plan to select a candidate now, saying it was "premature" and did not allow London enough time to propose one of its own, according to a confidential note seen by Reuters. Candidates for the head of the Washington-based IMF can be fielded until September 6. French Finance Minister Bruno Le Maire is leading the process to select a European candidate. The top job at the world lender has historically been filled by a European, but candidates from elsewhere may gain traction if Europe split. The former IMF chief, France's Christine Lagarde, resigned in July after EU leaders chose her to replace Mario Draghi as European Central Bank president. Divisions Northern European countries prefer Dijsselbloem or Rehn; southern and eastern states are seen pushing for Georgieva, one European official said. Since an informal compromise was impossible, France decided to push for a vote. A candidate who obtains 55% of the votes of the 28 EU states, representing at least 65% of its population, will win. The IMF chief should have a proven understanding of how the fund works, a commitment to multilateral organisations and be an effective communicator, the IMF board said. All three European candidates qualify. Dijsselbloem has steered the eurozone out of the debt crisis, orchestrating with the IMF the bailout of Greece, Cyprus and Spanish banks. But he is opposed by high-debt EU countries for the austerity measures attached to the rescues. Georgieva, 65, has had a long career at the World Bank, the IMF's twin organisation, but her candidacy would force a change in IMF rules that require the managing director to be less than 65 years old. Rehn has held top economic jobs at the European Commission and now at the Finnish central bank. New rounds of voting could be necessary to choose the European candidate. "It is a mathematical possibility that no-one will make it today," one official involved in the process said. "But I think at the end of the day after a lot of arm-twistings they will come up with one." Centeno said on Thursday he was pulling out of the race "in this stage of the process", adding he would be available if needed for a compromise solution. Britain did not field a candidate because it could not come up with a name on time, London said in a note sent to France. A new British government led by Boris Johnson was formed only last week.

European Union race for International Monetary Fund chief down to three as Spain's Nadia Calvino quits

EU members have yet to reach a consensus on a candidate to <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">replace Christine Lagarde</a> as head of the International Monetary Fund, missing a July deadline they set themselves to fill the job, the French finance ministry said Thursday.

"At this stage, although some candidates' names gather more support than others, there is not yet a full consensus around one name," the ministry, which is spearheading efforts to find a replacement for France's Lagarde, told reporters in a message.

The post of IMF managing director goes to a European by convention while an American heads the World Bank.&nbsp;

The post became vacant after <a href="https://www.wionews.com/world/lagarde-temporarily-steps-down-as-imf-chief-american-economist-david-lipton-named-interim-leader-232570">Lagarde</a> was tapped by EU leaders to head the European Central Bank.

Several names, including Spain's Finance Minister Nadia Calvino and former Dutch finance minister Jeroen Dijsselbloem and Bank of England governor Mark Carney, have been floated as possible successors.&nbsp;

The name of current ECB chief Mario Draghi had also been bandied about but he said last week he was "not available" for the position.&nbsp;

At 71, he is also too old to hold the post, according to IMF rules, which state that the managing director must be under 65 when appointed.

French Finance Minister Bruno Le Maire, who is leading the talks on finding a candidate, has spoken to "all his colleagues" over the last few days, "in particular with Olaf Scholz", his German counterpart, his office said.

He has organised a conference call with his EU counterparts on Thursday "to update them on the latest developments following his extensive consultations, and to agree on the process to reach a consensus around one name," it added.

Nominally open contest

The IMF says any of the fund's 189 members can nominate a candidate between July 29 and September 6, after which the board will announce its shortlist of up to three names.&nbsp;

But with the US and Europe having the biggest voting blocs in the IMF, it would be difficult for an outside candidate to upset the tradition whereby they divvy up the IMF and World Bank jobs between them.

The convention has nonetheless come under strain in recent years, with developing economies demanding a greater say at the Washington-based institutions.

But when the World Bank job opened up this year there was no competition to the US choice of David Malpass, a former treasury official.

The IMF said last week it planned to select its new leader by October 4, meaning the new boss would be in place for the lender's annual meeting in mid-October.&nbsp;

Last month, the finance ministers of Germany, France, Britain and Italy met on the sidelines of a G7 meeting in Chantilly outside Paris to discuss the issue of Lagarde's replacement.

Sources said the ministers agreed that Le Maire, whose country currently heads the G7, head the discussions among EU members on coming up with a single European candidate.

Five of its 11 leaders have been French nationals and they have been the longest-serving in the institution's 75-year history.

At the Chantilly meeting, US Treasury Secretary Steven Mnuchin emphasised that naming a European to head the IMF was a convention, "not an official policy".&nbsp;

Former French finance minister Lagarde took over in 2011 from compatriot Dominique Strauss-Kahn, who resigned under a cloud after being arrested on charges of sexually assaulting a New York hotel maid.&nbsp;

The criminal charges were later dropped and Strauss-Kahn settled a civil case out of court.

EU members have yet to reach a consensus on a candidate to replace Christine Lagarde as head of the International Monetary Fund, missing a July deadline they set themselves to fill the job, the French finance ministry said Thursday.

EU members have yet to reach a consensus on a candidate to replace Christine Lagarde as head of the International Monetary Fund, missing a July deadline they set themselves to fill the job, the French finance ministry said Thursday. "At this stage, although some candidates' names gather more support than others, there is not yet a full consensus around one name," the ministry, which is spearheading efforts to find a replacement for France's Lagarde, told reporters in a message. The post of IMF managing director goes to a European by convention while an American heads the World Bank. The post became vacant after Lagarde was tapped by EU leaders to head the European Central Bank. Several names, including Spain's Finance Minister Nadia Calvino and former Dutch finance minister Jeroen Dijsselbloem and Bank of England governor Mark Carney, have been floated as possible successors. The name of current ECB chief Mario Draghi had also been bandied about but he said last week he was "not available" for the position. At 71, he is also too old to hold the post, according to IMF rules, which state that the managing director must be under 65 when appointed. French Finance Minister Bruno Le Maire, who is leading the talks on finding a candidate, has spoken to "all his colleagues" over the last few days, "in particular with Olaf Scholz", his German counterpart, his office said. He has organised a conference call with his EU counterparts on Thursday "to update them on the latest developments following his extensive consultations, and to agree on the process to reach a consensus around one name," it added. Nominally open contest The IMF says any of the fund's 189 members can nominate a candidate between July 29 and September 6, after which the board will announce its shortlist of up to three names. But with the US and Europe having the biggest voting blocs in the IMF, it would be difficult for an outside candidate to upset the tradition whereby they divvy up the IMF and World Bank jobs between them. The convention has nonetheless come under strain in recent years, with developing economies demanding a greater say at the Washington-based institutions. But when the World Bank job opened up this year there was no competition to the US choice of David Malpass, a former treasury official. The IMF said last week it planned to select its new leader by October 4, meaning the new boss would be in place for the lender's annual meeting in mid-October. Last month, the finance ministers of Germany, France, Britain and Italy met on the sidelines of a G7 meeting in Chantilly outside Paris to discuss the issue of Lagarde's replacement. Sources said the ministers agreed that Le Maire, whose country currently heads the G7, head the discussions among EU members on coming up with a single European candidate. Five of its 11 leaders have been French nationals and they have been the longest-serving in the institution's 75-year history. At the Chantilly meeting, US Treasury Secretary Steven Mnuchin emphasised that naming a European to head the IMF was a convention, "not an official policy". Former French finance minister Lagarde took over in 2011 from compatriot Dominique Strauss-Kahn, who resigned under a cloud after being arrested on charges of sexually assaulting a New York hotel maid. The criminal charges were later dropped and Strauss-Kahn settled a civil case out of court.

EU members yet to reach consensus on IMF chief to replace Christine Lagarde

Imf, News on Imf, stories on Imf, articles on Imf, Imf stories at Wion, Imf news, Imf latest news