Indian shares marked their worst losing streak since mid-May on Wednesday after the International Monetary Fund (IMF) cut its annual growth forecast for the country, with losses seen across the board.

The broader NSE Nifty ended 0.53% lower at 11,271.3, while the benchmark BSE Sensex closed down 0.36% at 37,847.65. This was the indexes` fifth straight session of losses.

Port infrastructure company Adani Ports and Special Economic Zone Ltd declined 4.7% and was the top percentage loser on the NSE Nifty, while shadow bank Indiabulls Housing Finance Ltd fell 4.5% to its lowest close in nearly four weeks.

Meanwhile, shares of Interglobe Aviation Ltd, the owner of India`s top airline IndiGo, recovered from early losses to close 4.7% higher after TV channels reported that promoters of the airline had called a truce.

Zee Entertainment Enterprises Ltd led the 10 components of the Nifty 50 index that ended in the green, closing up 5.2% after reporting a jump in quarterly profit.

Indian shares marked their worst losing streak since mid-May on Wednesday after the International Monetary Fund (IMF) cut its annual growth forecast for the country, with losses seen across the board.

Indian shares marked their worst losing streak since mid-May on Wednesday after the International Monetary Fund (IMF) cut its annual growth forecast for the country, with losses seen across the board. The broader NSE Nifty ended 0.53% lower at 11,271.3, while the benchmark BSE Sensex closed down 0.36% at 37,847.65. This was the indexes` fifth straight session of losses. Port infrastructure company Adani Ports and Special Economic Zone Ltd declined 4.7% and was the top percentage loser on the NSE Nifty, while shadow bank Indiabulls Housing Finance Ltd fell 4.5% to its lowest close in nearly four weeks. Meanwhile, shares of Interglobe Aviation Ltd, the owner of India`s top airline IndiGo, recovered from early losses to close 4.7% higher after TV channels reported that promoters of the airline had called a truce. Zee Entertainment Enterprises Ltd led the 10 components of the Nifty 50 index that ended in the green, closing up 5.2% after reporting a jump in quarterly profit.

Nifty, Sensex close lower for fifth day after IMF cuts growth forecast

A World Bank arbitration court has imposed a <a href="https://www.wionews.com/south-asia/chinese-firms-pledge-to-invest-5-billion-in-cash-strapped-pakistan-235580">penalty of over five billion dollars</a> on Pakistan for the unlawful denial of a mining lease to a company for the Reko Diq project in 2011.

The Tethyan Copper Company had approached the International Centre for Settlement of Investment Disputes in 2012 after the Balochistan government declined its lease request.&nbsp;

The international tribunal on Saturday announced in a 700-page ruling that Pakistan has to pay Tethyan Copper $5.8 billion in damages, Samaa News reported.

Pakistan's Supreme Court had terminated the deal in 2013. The mining company said that it had invested over $220 million on <a href="https://www.wionews.com/south-asia/pakistan-to-pay-foreign-firm-6-billion-over-mine-closure-world-bank-235889">Reko Diq</a>.

The company is still "willing to strike a deal with Pakistan," Tethyan board chair William Hayes said in a statement.&nbsp;

But, added that "It would continue protecting its commercial and legal interests until the dispute was over."

The case between the Pakistani government and the international company continued for at least seven years.

The penalty came as a major blow to the cash-strapped economy of Pakistan that has received billions in financial aid packages from international organisations such as the International Monetary Fund (IMF) and a few friendly countries, including China, Saudi Arabia and the United Arab Emirates (UAE) during the current fiscal year.

Prime Minister Imran Khan on Sunday issued orders for the formation of a commission to investigate and fix responsibility for the massive loss borne by Pakistan in the Reko Diq case.

The Attorney General's office issued a press release stating that Islamabad together with the Balochistan government was analysing the legal and financial effects of the court orders and that the government was considering all aspects of the matter and will decide the future course with a consultation.

The press release said Pakistan had the right to use all legal options available under the international laws.&nbsp;

The government also welcomed Tethyan Copper Company's (TCC) offer to resolve the issue through negotiations. It also welcomed all the international investors to Pakistan.

It added that Pakistan was further interested in the development of Reko Diq resources and as a responsible state saw the international agreements and protection of legal rights and interests with seriousness.

Reko Diq mine is famed for its vast gold and copper reserves and is believed to have the world's fifth-largest gold deposit.

The small town of Reko Diq in Chagai district in Balochistan is located in a desert area, 70 kilometres north-west of Naukundi, close to the border with Iran and Afghanistan.&nbsp;

A World Bank arbitration court has imposed a penalty of over five billion dollars on Pakistan for the unlawful denial of a mining lease to a company for the Reko Diq project in 2011.

A World Bank arbitration court has imposed a penalty of over five billion dollars on Pakistan for the unlawful denial of a mining lease to a company for the Reko Diq project in 2011. The Tethyan Copper Company had approached the International Centre for Settlement of Investment Disputes in 2012 after the Balochistan government declined its lease request. The international tribunal on Saturday announced in a 700-page ruling that Pakistan has to pay Tethyan Copper $5.8 billion in damages, Samaa News reported. Pakistan's Supreme Court had terminated the deal in 2013. The mining company said that it had invested over $220 million on Reko Diq. The company is still "willing to strike a deal with Pakistan," Tethyan board chair William Hayes said in a statement. But, added that "It would continue protecting its commercial and legal interests until the dispute was over." The case between the Pakistani government and the international company continued for at least seven years. The penalty came as a major blow to the cash-strapped economy of Pakistan that has received billions in financial aid packages from international organisations such as the International Monetary Fund (IMF) and a few friendly countries, including China, Saudi Arabia and the United Arab Emirates (UAE) during the current fiscal year. Prime Minister Imran Khan on Sunday issued orders for the formation of a commission to investigate and fix responsibility for the massive loss borne by Pakistan in the Reko Diq case. The Attorney General's office issued a press release stating that Islamabad together with the Balochistan government was analysing the legal and financial effects of the court orders and that the government was considering all aspects of the matter and will decide the future course with a consultation. The press release said Pakistan had the right to use all legal options available under the international laws. The government also welcomed Tethyan Copper Company's (TCC) offer to resolve the issue through negotiations. It also welcomed all the international investors to Pakistan. It added that Pakistan was further interested in the development of Reko Diq resources and as a responsible state saw the international agreements and protection of legal rights and interests with seriousness. Reko Diq mine is famed for its vast gold and copper reserves and is believed to have the world's fifth-largest gold deposit. The small town of Reko Diq in Chagai district in Balochistan is located in a desert area, 70 kilometres north-west of Naukundi, close to the border with Iran and Afghanistan.

International Court slaps $5 billion penalty on Pakistan in Reko Diq case

The International Monetary Fund has lashed out at ruling Imran Khan-led <a href="https://www.wionews.com/india-news/pakistan-hasnt-acknowledged-presence-of-indian-prisoners-of-war-defence-personnel-in-its-custody-government-in-lok-sabha-234803">Pakistan</a> Tehreek-i-Insaf for not adopting adequate policies to address the economic crisis in the country.

The IMF blamed the current PTI government for delayed and yet unsatisfactory policy action for correction.

Hence despite some exchange rate depreciation and significant monetary policy tightening, sizeable foreign exchange interventions continued through April 2019, reported Dawn.

"Similarly, fiscal slippages in the first half of the fiscal year have been significant despite the adoption of two budget amendments. Finally, increases in power and gas tariffs have not been sufficient to stem the accumulation of quasi-fiscal losses," the IMF noted.

IMF made these remarks in its staff report on $6 billion bailouts to Pakistan approved by its executive board earlier this week.

The agency held the PML-N government responsible for unbalanced policies and unfinished reforms.

"Misaligned economic policies, including large fiscal deficits, loose monetary policy, and defence of an overvalued exchange rate, fuelled consumption and short-term growth in recent years, but steadily eroded macroeconomic buffers, increased external and public debt, and depleted international reserves," it said.

IMF also 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".

The three-year bailout package was approved by the IMF's Executive Board last week."IMF Executive Board approved today a <a href="https://www.wionews.com/south-asia/imf-approves-6-billion-loan-for-pakistan-to-right-the-nations-economy-232863">three-year $6 billion loan</a> to support Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," Gerry Rice, the IMF's spokesperson had confirmed the news on Twitter on July 3.

The Asian Development Bank has also announced plans to lend $10 billion to Pakistan for various development projects over the next five years.&nbsp;

The International Monetary Fund has lashed out at ruling Imran Khan-led Pakistan Tehreek-i-Insaf for not adopting adequate policies to address the economic crisis in the country.

The International Monetary Fund has lashed out at ruling Imran Khan-led Pakistan Tehreek-i-Insaf for not adopting adequate policies to address the economic crisis in the country. The IMF blamed the current PTI government for delayed and yet unsatisfactory policy action for correction. Hence despite some exchange rate depreciation and significant monetary policy tightening, sizeable foreign exchange interventions continued through April 2019, reported Dawn. "Similarly, fiscal slippages in the first half of the fiscal year have been significant despite the adoption of two budget amendments. Finally, increases in power and gas tariffs have not been sufficient to stem the accumulation of quasi-fiscal losses," the IMF noted. IMF made these remarks in its staff report on $6 billion bailouts to Pakistan approved by its executive board earlier this week. The agency held the PML-N government responsible for unbalanced policies and unfinished reforms. "Misaligned economic policies, including large fiscal deficits, loose monetary policy, and defence of an overvalued exchange rate, fuelled consumption and short-term growth in recent years, but steadily eroded macroeconomic buffers, increased external and public debt, and depleted international reserves," it said. IMF also 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". The three-year bailout package was approved by the IMF's Executive Board last week."IMF Executive Board approved today a three-year $6 billion loan to support Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," Gerry Rice, the IMF's spokesperson had confirmed the news on Twitter on July 3. The Asian Development Bank has also announced plans to lend $10 billion to Pakistan for various development projects over the next five years.

International Monetary Fund blames PTI, PLM-N for Pakistan's economic crisis

European finance ministers need to find a compromise candidate to replace Christine Lagarde as the head of the International Monetary Fund, French Finance Minister Bruno Le Maire said on Saturday.

European leaders nominated <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/lagarde-temporarily-steps-down-as-imf-chief-american-economist-david-lipton-named-interim-leader-232570&amp;sa=U&amp;ved=2ahUKEwjXu4bSqqDjAhX-8HMBHaSMDgAQFjABegQIDhAC&amp;usg=AOvVaw2nU5ZdRLUtEKvd_--7s5g7">Lagarde </a>last week to succeed Mario Draghi as president of the European Central Bank, raising the question of who would, in turn, replace her at the IMF.

Speaking on the sidelines of an economics and business conference in southern France, Le Maire that European finance ministers would discuss the issue at a meeting in Brussels on Tuesday.

"We need to find a compromise at the European level... I hope that we will find a compromise about the best candidate, the best European candidate for the IMF," he told journalists.

"If we have a good European candidate we might have a good candidate for the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/imf-reaches-agreement-with-argentina-to-release-54-bn-loan-tranche-233428&amp;sa=U&amp;ved=2ahUKEwjXu4bSqqDjAhX-8HMBHaSMDgAQFjACegQIDxAC&amp;usg=AOvVaw15Jg15KWAp7DdFpaHXOf0G">IMF</a>," he added in response to a question about whether Bank of England governor Mark Carney, who holds British, Canadian and Irish passports, could be fielded as Europe's candidate.

A French official said that Le Maire was due to discuss the issue with President Emmanuel Macron this weekend and that he was likely to speak with Carney beforehand.

France was aware that support was building for Carney, the official added, saying that if Paris decided to back him it would be sooner rather than later.

Traditionally the Washington-based IMF has been led by a European, while its sister institution the World Bank has been run by an American. At times, larger emerging market countries have sought to disrupt the duopoly with their own candidates.

Given that the World Bank presidency recently went to American David Malpass, the French official said there was no reason why the IMF should not go to European again.

Carney, who has also been governor of the Bank of Canada, is widely respected in international policy circles.

Le Maire ruled himself out for the IMF job on Friday, telling BFM TV in an interview that he intended to stay at the French finance ministry for the five years of President Emmanuel Macron's mandate.

European finance ministers need to find a compromise candidate to replace Christine Lagarde as the head of the International Monetary Fund, French Finance Minister Bruno Le Maire said on Saturday.

European finance ministers need to find a compromise candidate to replace Christine Lagarde as the head of the International Monetary Fund, French Finance Minister Bruno Le Maire said on Saturday. European leaders nominated Lagarde last week to succeed Mario Draghi as president of the European Central Bank, raising the question of who would, in turn, replace her at the IMF. Speaking on the sidelines of an economics and business conference in southern France, Le Maire that European finance ministers would discuss the issue at a meeting in Brussels on Tuesday. "We need to find a compromise at the European level... I hope that we will find a compromise about the best candidate, the best European candidate for the IMF," he told journalists. "If we have a good European candidate we might have a good candidate for the IMF," he added in response to a question about whether Bank of England governor Mark Carney, who holds British, Canadian and Irish passports, could be fielded as Europe's candidate. A French official said that Le Maire was due to discuss the issue with President Emmanuel Macron this weekend and that he was likely to speak with Carney beforehand. France was aware that support was building for Carney, the official added, saying that if Paris decided to back him it would be sooner rather than later. Traditionally the Washington-based IMF has been led by a European, while its sister institution the World Bank has been run by an American. At times, larger emerging market countries have sought to disrupt the duopoly with their own candidates. Given that the World Bank presidency recently went to American David Malpass, the French official said there was no reason why the IMF should not go to European again. Carney, who has also been governor of the Bank of Canada, is widely respected in international policy circles. Le Maire ruled himself out for the IMF job on Friday, telling BFM TV in an interview that he intended to stay at the French finance ministry for the five years of President Emmanuel Macron's mandate.

Europe needs to find candidate to head IMF: France

European Council President Donald Tusk praised an agreement to <a href="https://www.wionews.com/world/lagarde-temporarily-steps-down-as-imf-chief-american-economist-david-lipton-named-interim-leader-232570">assign two senior EU jobs</a> on to women for the first time.

"After all, Europe is a woman," he told a news conference after three day of tortuous talks between 28 EU leaders on assigning the bloc's top jobs exposed their deepening divisions.

Tusk said the appointment of Germany's defence minister Ursula von der Leyen to lead the next European Commission still needed approval from the European Parliament.

He also said he was "absolutely sure" that France's Christine Lagarde would be an independent new head of the European Central Bank.

European Union leaders agreed on Tuesday to name France's Christine Lagarde as the new head of the European Central Bank and sealed a deal on filling the EU's other top four jobs after marathon talks that have exposed deep divisions in the bloc.

Three days of summit negotiations that at times looked close to collapse ended with a deal that now must be approved by the European Parliament and was immediately rejected by the socialist and green bloc in the assembly in Strasbourg.

Leaders hope the decision to nominate two women, Lagarde and German Defence Minister Ursula von der Leyen, to the top of EU decision-making for the first time will send a positive message and repair damage wrought by such a fractious summit, diplomats said.

Lagarde, once France's first woman finance minister and since 2011 head of the International Monetary Fund (IMF), is a strong advocate of female empowerment, although she has no direct, active monetary policy experience.

The biggest task for Lagarde, who had previously denied any interest in an EU job, will be to revive the eurozone economy.

"Christine Lagarde will ... be a perfect president of the European Central Bank," Tusk said. "I am absolutely sure that she will be a very independent president ..."

European Council President Donald Tusk praised an agreement to assign two senior EU jobs on to women for the first time. "After all, Europe is a woman," he told a news conference after three day of tortuous talks between 28 EU leaders on assigning the bloc's top jobs exposed their deepening divisions.

European Council President Donald Tusk praised an agreement to assign two senior EU jobs on to women for the first time. "After all, Europe is a woman," he told a news conference after three day of tortuous talks between 28 EU leaders on assigning the bloc's top jobs exposed their deepening divisions. Tusk said the appointment of Germany's defence minister Ursula von der Leyen to lead the next European Commission still needed approval from the European Parliament. He also said he was "absolutely sure" that France's Christine Lagarde would be an independent new head of the European Central Bank. European Union leaders agreed on Tuesday to name France's Christine Lagarde as the new head of the European Central Bank and sealed a deal on filling the EU's other top four jobs after marathon talks that have exposed deep divisions in the bloc. Three days of summit negotiations that at times looked close to collapse ended with a deal that now must be approved by the European Parliament and was immediately rejected by the socialist and green bloc in the assembly in Strasbourg. Leaders hope the decision to nominate two women, Lagarde and German Defence Minister Ursula von der Leyen, to the top of EU decision-making for the first time will send a positive message and repair damage wrought by such a fractious summit, diplomats said. Lagarde, once France's first woman finance minister and since 2011 head of the International Monetary Fund (IMF), is a strong advocate of female empowerment, although she has no direct, active monetary policy experience. The biggest task for Lagarde, who had previously denied any interest in an EU job, will be to revive the eurozone economy. "Christine Lagarde will ... be a perfect president of the European Central Bank," Tusk said. "I am absolutely sure that she will be a very independent president ..."

After all, Europe is a woman, says EU president Tusk after top jobs deal

Pakistan's rupee dropped to another record low on Wednesday, sliding more than 3 per cent in a day, the central bank said.

The rupee closed at 161.94 against the dollar in the interbank market, continuing a slide since Pakistan signed an agreement with the International Monetary Fund last month for a $6 billion loan.

The rupee on Tuesday closed at 156.97 against dollar in the interbank market. In the open market it was selling at 162.50 on Wednesday, money exchange dealers said.

The rupee has lost more than 50 per cent of its value since December 2017, stoking inflation and putting pressure on the government as voter anger at higher prices grows.

The IMF accord, which has yet to be approved, foresees a "market-determined" rate for the rupee, which previously has been managed by the central bank in a de facto controlled float.

The State Bank of Pakistan, which raised interest rates by 150 basis points last month to 12.25 per cent, said it was watching the foreign exchange market closely and would act in the case of "unwarranted" volatility.

It said the recent slide "reflects the continuing resolution of accumulated imbalances of the past and some role of supply and demand factors".

The newly appointed governor of the central bank, Reza Baqir, dismissed the idea of a free-floating rupee in his first news conference, on June 17, as he outlined reforms aimed at ending instability in the economy.

Pakistan has ballooning current and fiscal account deficits and has seen repeated devaluations of the rupee. Pakistan's exchange-rate policy is a "market-based" system that follows supply and demand, but that will not be left completely to the market, Baqir said.

Pakistan's rupee dropped to another record low on Wednesday, sliding more than 3 per cent in a day, the central bank said. The rupee closed at 161.94 against the dollar in the interbank market, continuing a slide since Pakistan signed an agreement with the International Monetary Fund last month for a $6 billion loan.

Pakistan's rupee dropped to another record low on Wednesday, sliding more than 3 per cent in a day, the central bank said. The rupee closed at 161.94 against the dollar in the interbank market, continuing a slide since Pakistan signed an agreement with the International Monetary Fund last month for a $6 billion loan. The rupee on Tuesday closed at 156.97 against dollar in the interbank market. In the open market it was selling at 162.50 on Wednesday, money exchange dealers said. The rupee has lost more than 50 per cent of its value since December 2017, stoking inflation and putting pressure on the government as voter anger at higher prices grows. The IMF accord, which has yet to be approved, foresees a "market-determined" rate for the rupee, which previously has been managed by the central bank in a de facto controlled float. The State Bank of Pakistan, which raised interest rates by 150 basis points last month to 12.25 per cent, said it was watching the foreign exchange market closely and would act in the case of "unwarranted" volatility. It said the recent slide "reflects the continuing resolution of accumulated imbalances of the past and some role of supply and demand factors". The newly appointed governor of the central bank, Reza Baqir, dismissed the idea of a free-floating rupee in his first news conference, on June 17, as he outlined reforms aimed at ending instability in the economy. Pakistan has ballooning current and fiscal account deficits and has seen repeated devaluations of the rupee. Pakistan's exchange-rate policy is a "market-based" system that follows supply and demand, but that will not be left completely to the market, Baqir said.

Post-IMF agreement, Pakistani rupee continues to slide; down 3% in a day

Pakistan has failed to complete its action plan on terror financing, the Financial Action Task Force (FATF) said, warning Islamabad to meet its commitment by October or face action, which could possibly lead to the country's blacklisting

FATF comes down strongly on Pakistan

Pakistan Remains In FATF Greylist, Survives Blacklist Scare. FATF has decided to keep Pakistan in its greylist,. Watch this video to know more.

Pakistan Remains In FATF Greylist, Survives Blacklist Scare

Pakistan Prime Minister Imran Khan’s government was set to present an austerity-focused budget Tuesday, weeks after the country reached an agreement with the International Monetary Fund for a <a href="https://www.wionews.com/south-asia/imf-likely-to-give-6-billion-us-dollar-bailout-package-to-pakistan-197059">$6 billion bailout</a>.

The presentation of Khan's first budget comes just a day after the government released the latest round of bleak economic figures for the cash-strapped country, showing growth for the <a href="https://www.wionews.com/south-asia/pakistans-economic-growth-falls-to-329-per-cent-in-fy19-226094">current fiscal year falling to 3.3 per cent</a> -- well below the 6.2 per cent target.

The release of the figures comes as discontent simmers in <a href="https://www.wionews.com/south-asia/pak-pm-imran-khan-announces-militarys-voluntary-cut-in-defence-expenditure-amid-financial-crisis-224402">Pakistan</a> following repeated devaluations of the rupee, soaring inflation, and increasing utility costs.&nbsp;

The economic pain follows months of failed efforts by Khan's administration to stave off ballooning fiscal and balance of payments deficits, along with low tax yields and mounting debt. &nbsp;&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-to-stay-on-fatfs-grey-list-official-to-wion-222508">Pakistan to stay on FATF's grey list: Official to WION</a>

"Prime Minister Imran Khan has committed to... trying to correct things permanently even if we go through hard times for six months or one year or one and a half years,” said the country’s finance advisor, Abdul Hafeez Sheikh, late Monday.

Earlier Monday, Khan took to the country's airways for the second time in recent weeks to plead with Pakistanis to <a href="https://www.wionews.com/south-asia/imran-khan-asks-pakistanis-to-declare-their-undisclosed-assets-by-jun-30-225963">declare their assets in the latest scheme</a> aimed at increasing tax revenues.&nbsp;

Pakistan has struggled for decades to collect taxes with estimates suggesting that only around one per cent of the 200-million strong population filed a return in 2018.

Is The IMF Bailout A Lifeline For Pakistan's Economy?

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The agreement eked out with the IMF still needs final approval by the fund’s board, and it is widely believed the body is waiting for the presentation of the budget before giving the final sign-off.

Analysts have warned the IMF deal would likely come with myriad restrictions that could bridle Khan's grand promises to build an Islamic welfare state, as the country is forced to tighten its purse strings.

Pakistan’s increasing economic woes also come as the country is facing possible sanctions from the Financial Action Task Force -- a money-laundering monitor based in Paris -- for failing to rein-in terror financing.

The organisation will decide soon whether to add Pakistan to a blacklist that would trigger automatic sanctions, further weakening an already-faltering economy.

To add to its troubles, the United States has also warned it will be watching closely to ensure Pakistan does not use IMF money to repay debts to China, which has poured billions into the country for infrastructure projects under its Belt and Road Initiative. 
&nbsp;

Pakistan Prime Minister Imran Khan’s government was set to present an austerity-focused budget Tuesday, weeks after the country reached an agreement with the International Monetary Fund for a $6 billion bailout.

Pakistan Prime Minister Imran Khan’s government was set to present an austerity-focused budget Tuesday, weeks after the country reached an agreement with the International Monetary Fund for a $6 billion bailout. The presentation of Khan's first budget comes just a day after the government released the latest round of bleak economic figures for the cash-strapped country, showing growth for the current fiscal year falling to 3.3 per cent -- well below the 6.2 per cent target. The release of the figures comes as discontent simmers in Pakistan following repeated devaluations of the rupee, soaring inflation, and increasing utility costs. The economic pain follows months of failed efforts by Khan's administration to stave off ballooning fiscal and balance of payments deficits, along with low tax yields and mounting debt. Also read: Pakistan to stay on FATF's grey list: Official to WION "Prime Minister Imran Khan has committed to... trying to correct things permanently even if we go through hard times for six months or one year or one and a half years,” said the country’s finance advisor, Abdul Hafeez Sheikh, late Monday. Earlier Monday, Khan took to the country's airways for the second time in recent weeks to plead with Pakistanis to declare their assets in the latest scheme aimed at increasing tax revenues. Pakistan has struggled for decades to collect taxes with estimates suggesting that only around one per cent of the 200-million strong population filed a return in 2018. Is The IMF Bailout A Lifeline For Pakistan's Economy? × The agreement eked out with the IMF still needs final approval by the fund’s board, and it is widely believed the body is waiting for the presentation of the budget before giving the final sign-off. Analysts have warned the IMF deal would likely come with myriad restrictions that could bridle Khan's grand promises to build an Islamic welfare state, as the country is forced to tighten its purse strings. Pakistan’s increasing economic woes also come as the country is facing possible sanctions from the Financial Action Task Force -- a money-laundering monitor based in Paris -- for failing to rein-in terror financing. The organisation will decide soon whether to add Pakistan to a blacklist that would trigger automatic sanctions, further weakening an already-faltering economy. To add to its troubles, the United States has also warned it will be watching closely to ensure Pakistan does not use IMF money to repay debts to China, which has poured billions into the country for infrastructure projects under its Belt and Road Initiative.

Pakistan to present austerity-centred budget following IMF deal

The global economy is at a “delicate juncture” which will require central banks to maintain stimulus and governments to resolve trade disputes quickly, the International Monetary Fund warned Wednesday. “The immediate priority is to resolve the current trade tensions,” IMF chief Christine Lagarde urged in a blog post aimed at the Group of 20 finance ministers and central bankers as they prepare for a meeting in Japan this weekend.

WION Wallet: IMF's Lagarde warns of 'growing concerns' over trade tensions

Pakistan PM Imran Khan announced today that the country's military has decided on "unprecedented voluntary initiative of stringent cuts in its defence expenditures" due to the critical financial situation prevailing in the country.

"Despite multiple security challenges. My government will spend this money saved on development of merged tribal areas and Balochistan," the Pakistan prime minister said on Twitter.

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I appreciate Pak Mil's unprecedented voluntary initiative of stringent cuts in their defence expenditures for next FY bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas &amp; Balochistan.
— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1135971466552512520?ref_src=twsrc%5Etfw">June 4, 2019</a></blockquote>
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Major General Asif Ghafoor head of Pakistan's Inter-Services Public Relations(ISPR), the military's media wing, added&nbsp;that voluntary cut in the defence budget for a year wouldn't be at the cost of defence and security.&nbsp;

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Voluntary cut in def budget for a year will not be at the cost of def &amp; security. We shall maint effective response potential to all threats.Three services will manage impact of the cut through appropriate internal measures. It was imp to participate in dev of tribal areas &amp; Bln.
— Maj Gen Asif Ghafoor (@OfficialDGISPR) <a href="https://twitter.com/OfficialDGISPR/status/1136003059476324353?ref_src=twsrc%5Etfw">June 4, 2019</a></blockquote>
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"We shall maintain effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It is important to participate in the development of tribal areas and Balochistan," Ghafoor said.

However, the move was criticised by Opposition PML(N) leader Maryam Nawaz Sharif who said PM Imran Khan's announcement was "nothing but an admission of your incompetence and sheer ineptitude."

Last month the International Monetary Fund(IMF) had agreed on a $6 billion bailout for Pakistan's beleaguered economy. The IMF had stated that&nbsp;"priority" areas included improving the management of public enterprises, strengthening institutions and "continuing anti-money laundering and combating the financing of terrorism efforts".

Pakistan has had 21 bailouts since it joined the IMF in 1950. It's most recent loan was issued in 2013, worth $6.6 billion.

Post the bailout, the Pakistan currency had hit an all-time low as the rupee slipped over 3 per cent last month.

Pakistan is battling being blacklisted by Financial Action Task Force (FATF) due to inaction on terror financing. The Pakistan economy for the past two years has been fighting a deep balance-of-payments crisis hit by low growth, soaring inflation&nbsp;and mounting debt.

In recent months, Pakistan prime minister Imran Khan has travelled to China, Saudi Arabia and Malaysia in an attempt to request financial aid, although he has been promised substantial aid but it still hasn't been enough to tide over the crisis.

Pakistan PM Imran Khan announced today that the country's military has decided on "unprecedented voluntary initiative of stringent cuts in its defence expenditures" due to the critical financial situation prevailing in the country.

Pakistan PM Imran Khan announced today that the country's military has decided on "unprecedented voluntary initiative of stringent cuts in its defence expenditures" due to the critical financial situation prevailing in the country. "Despite multiple security challenges. My government will spend this money saved on development of merged tribal areas and Balochistan," the Pakistan prime minister said on Twitter. I appreciate Pak Mil's unprecedented voluntary initiative of stringent cuts in their defence expenditures for next FY bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas & Balochistan. — Imran Khan (@ImranKhanPTI) June 4, 2019 × Major General Asif Ghafoor head of Pakistan's Inter-Services Public Relations(ISPR), the military's media wing, added that voluntary cut in the defence budget for a year wouldn't be at the cost of defence and security. Voluntary cut in def budget for a year will not be at the cost of def & security. We shall maint effective response potential to all threats.Three services will manage impact of the cut through appropriate internal measures. It was imp to participate in dev of tribal areas & Bln. — Maj Gen Asif Ghafoor (@OfficialDGISPR) June 4, 2019 × "We shall maintain effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It is important to participate in the development of tribal areas and Balochistan," Ghafoor said. However, the move was criticised by Opposition PML(N) leader Maryam Nawaz Sharif who said PM Imran Khan's announcement was "nothing but an admission of your incompetence and sheer ineptitude." Last month the International Monetary Fund(IMF) had agreed on a $6 billion bailout for Pakistan's beleaguered economy. The IMF had stated that "priority" areas included improving the management of public enterprises, strengthening institutions and "continuing anti-money laundering and combating the financing of terrorism efforts". Pakistan has had 21 bailouts since it joined the IMF in 1950. It's most recent loan was issued in 2013, worth $6.6 billion. Post the bailout, the Pakistan currency had hit an all-time low as the rupee slipped over 3 per cent last month. Pakistan is battling being blacklisted by Financial Action Task Force (FATF) due to inaction on terror financing. The Pakistan economy for the past two years has been fighting a deep balance-of-payments crisis hit by low growth, soaring inflation and mounting debt. In recent months, Pakistan prime minister Imran Khan has travelled to China, Saudi Arabia and Malaysia in an attempt to request financial aid, although he has been promised substantial aid but it still hasn't been enough to tide over the crisis.

Pak PM Imran Khan announces military's 'voluntary cut' in defence expenditure amid financial crisis

Venezuela ended 2018 with 130,060 per cent inflation, while the economy contracted 47.6 per cent between 2013 and 2018, the central bank said Tuesday in the first such figures it has released in three years.&nbsp;

The data found inflation reached 274.4 per cent in 2016, 862.6 per cent in 2017 and 130,060 per cent in 2018 -- figures 10 times smaller than International Monetary Fund estimates of 1,370,000 per cent for last year. &nbsp;

The IMF projects 10,000,000 per cent inflation for the oil-rich country in 2019.

The Central Bank of Venezuela also reported that oil exports -- which account for 96 per cent of the country's revenue -- plummeted to $29.8 billion in 2018, down from $85.6 billion in 2013 and $71.7 billion in 2014, when oil prices collapsed and the country's political and economic crisis began.

Oil prices have since rebounded, starting in 2016, but Venezuela's drop in production prevented a return to previous revenue levels -- the country was producing 1.03 million barrels of oil per day in April versus the 3.2 million barrels it produced per day a decade ago.

The central bank had stopped providing officials figures three years ago without giving an official reason, though it had already been holding back the amount of economic information it reported.

Venezuela ended 2018 with 130,060 per cent inflation, while the economy contracted 47.6 per cent between 2013 and 2018, the central bank said Tuesday in the first such figures it has released in three years.

Venezuela ended 2018 with 130,060 per cent inflation, while the economy contracted 47.6 per cent between 2013 and 2018, the central bank said Tuesday in the first such figures it has released in three years. The data found inflation reached 274.4 per cent in 2016, 862.6 per cent in 2017 and 130,060 per cent in 2018 -- figures 10 times smaller than International Monetary Fund estimates of 1,370,000 per cent for last year. The IMF projects 10,000,000 per cent inflation for the oil-rich country in 2019. The Central Bank of Venezuela also reported that oil exports -- which account for 96 per cent of the country's revenue -- plummeted to $29.8 billion in 2018, down from $85.6 billion in 2013 and $71.7 billion in 2014, when oil prices collapsed and the country's political and economic crisis began. Oil prices have since rebounded, starting in 2016, but Venezuela's drop in production prevented a return to previous revenue levels -- the country was producing 1.03 million barrels of oil per day in April versus the 3.2 million barrels it produced per day a decade ago. The central bank had stopped providing officials figures three years ago without giving an official reason, though it had already been holding back the amount of economic information it reported.

Venezuela says 2018 inflation 10 times lower than IMF estimates

The IMF sounded the alarm on Thursday about the escalating US-China trade war, warning it will "jeopardize" 2019 global growth, undermine confidence and raise prices for consumers.

Gita Gopinath, the International Monetary Fund's chief economist, directly refuted President Donald Trump's claim that tariffs are paid by China and provide a windfall for the US treasury, and that his aggressive posture will help reduce the US trade deficit.

She and her co-authors warned in a blog post that the economic damage will be even worse if Trump goes through with the threat to impose steep tariffs on all goods imported from China, as that "will subtract about one-third of a percentage point of global GDP in the short term."

Optimism was high earlier this month that a deal was within striking distance but tensions erupted after Trump accused Beijing of backtracking on its commitments made over the year of negotiations.

He then more than doubled tariffs on $200 billion in Chinese goods to 25 per cent and threatened to hit the remaining $300 billion in products imported each year with duties at the same level.

"Consumers in the US and China are unequivocally the losers from trade tensions," Gopinath stated, noting that the "tariff revenue collected has been borne almost entirely by US importers."

IMF chief Christine Lagarde and other fund officials have repeatedly raised concerns about the trade war but the blog post quantified the realized and expected damage, presenting the case with greater urgency.

Trump says a primary goal of the aggressive tariff strategy is to reduce the trade imbalance with China, which totaled $379 billion last year.

But Gopinath argues that while the tensions have damaged both countries, reducing overall trade and hurting companies, "the bilateral trade deficit remains broadly unchanged."

'Delicate year'

Meanwhile, total US imports have not changed significantly since importers simply shifted their purchases to other countries.

"While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains and jeopardize the projected recovery in global growth in 2019," she warned in the blog post.

"This type of scenario is among the reasons why we referred to 2019 as a delicate year for the global economy."

In addition, if tariffs escalate this will make a host of consumer goods less affordable, "harming low-income households disproportionately."

A growing number of US companies and industries have come out to urge Trump to dial back the confrontation, including major shoe manufacturers and retailers who say new tariffs would be "catastrophic."

But Trump has not been receptive to concerns of business executives, nor research on the harm being done.

The New York Federal Reserve Bank issued research Thursday showing the total annual cost of the new round of tariffs to a typical household would rise to $831 from $132 in 2018.

"In sum, according to our estimates, these higher tariffs are likely to create large economic distortions," the study showed.

No new talks have been scheduled between Beijing and Washington, and China earlier Thursday accused the United States of "bullying," and called for a show of "sincerity" before negotiations can resume.

Foreign Minister Wang Yi on Wednesday warned that Beijing was ready to "fight to the very end."

The IMF sounded the alarm on Thursday about the escalating US-China trade war, warning it will "jeopardize" 2019 global growth, undermine confidence and raise prices for consumers.

The IMF sounded the alarm on Thursday about the escalating US-China trade war, warning it will "jeopardize" 2019 global growth, undermine confidence and raise prices for consumers. Gita Gopinath, the International Monetary Fund's chief economist, directly refuted President Donald Trump's claim that tariffs are paid by China and provide a windfall for the US treasury, and that his aggressive posture will help reduce the US trade deficit. She and her co-authors warned in a blog post that the economic damage will be even worse if Trump goes through with the threat to impose steep tariffs on all goods imported from China, as that "will subtract about one-third of a percentage point of global GDP in the short term." Optimism was high earlier this month that a deal was within striking distance but tensions erupted after Trump accused Beijing of backtracking on its commitments made over the year of negotiations. He then more than doubled tariffs on $200 billion in Chinese goods to 25 per cent and threatened to hit the remaining $300 billion in products imported each year with duties at the same level. "Consumers in the US and China are unequivocally the losers from trade tensions," Gopinath stated, noting that the "tariff revenue collected has been borne almost entirely by US importers." IMF chief Christine Lagarde and other fund officials have repeatedly raised concerns about the trade war but the blog post quantified the realized and expected damage, presenting the case with greater urgency. Trump says a primary goal of the aggressive tariff strategy is to reduce the trade imbalance with China, which totaled $379 billion last year. But Gopinath argues that while the tensions have damaged both countries, reducing overall trade and hurting companies, "the bilateral trade deficit remains broadly unchanged." 'Delicate year' Meanwhile, total US imports have not changed significantly since importers simply shifted their purchases to other countries. "While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains and jeopardize the projected recovery in global growth in 2019," she warned in the blog post. "This type of scenario is among the reasons why we referred to 2019 as a delicate year for the global economy." In addition, if tariffs escalate this will make a host of consumer goods less affordable, "harming low-income households disproportionately." A growing number of US companies and industries have come out to urge Trump to dial back the confrontation, including major shoe manufacturers and retailers who say new tariffs would be "catastrophic." But Trump has not been receptive to concerns of business executives, nor research on the harm being done. The New York Federal Reserve Bank issued research Thursday showing the total annual cost of the new round of tariffs to a typical household would rise to $831 from $132 in 2018. "In sum, according to our estimates, these higher tariffs are likely to create large economic distortions," the study showed. No new talks have been scheduled between Beijing and Washington, and China earlier Thursday accused the United States of "bullying," and called for a show of "sincerity" before negotiations can resume. Foreign Minister Wang Yi on Wednesday warned that Beijing was ready to "fight to the very end."

IMF warns US-China trade war will 'jeopardize' 2019 global growth

Despite government's efforts, Paypal, a US-based online payment giant, will not be launching its services in the Pakistan, local media reported on Friday.&nbsp;

Pakistan's Ministry of Information Technology Secretary Maroof Afzal informed the Senate committee today that Paypal's internal working is such that "they are not ready to introduce its services", local media reported.

"Paypal did not decline because it has issues operating in Pakistan. Their internal working is such that they are not ready to introduce services in Pakistan," Dawn quoted Maroof Afzal as saying.

Also read:<a href="https://www.wionews.com/south-asia/pakistans-currency-reaches-all-time-low-against-us-dollar-219221"> Post IMF bailout, Pakistan's currency reaches all-time low against US dollar</a>

Pakistan's Senate Standing Committee on Information and Technology has been pushing the IT ministry to ask Paypal to launch its services in the country.

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In February, Pakistan's finance minister Asad Umar had said that talks to bring PayPal in the country are underway while rubbishing reports that the federal government was impeding the company's entry into the Pakistani market. He had claimed that it is actually "chasing" the company.

In November 2015, the IT Ministry had announced that it was set to invite PayPal and Chinese e-commerce giant Alibaba to offer their services in Pakistan. The move followed a decision by the global Financial Action Task Force to remove Pakistan from its list of high-risk and non-cooperative jurisdictions linked to money laundering.

(With inputs from agencies)

Despite government's efforts, Paypal, a US-based online payment giant, will not be launching its services in the Pakistan, local media reported on Friday. Pakistan's Ministry of Information Technology Secretary Maroof Afzal informed the Senate committee today that Paypal's internal working is such that "they are not ready to introduce its services", local media reported.

Despite government's efforts, Paypal, a US-based online payment giant, will not be launching its services in the Pakistan, local media reported on Friday. Pakistan's Ministry of Information Technology Secretary Maroof Afzal informed the Senate committee today that Paypal's internal working is such that "they are not ready to introduce its services", local media reported. "Paypal did not decline because it has issues operating in Pakistan. Their internal working is such that they are not ready to introduce services in Pakistan," Dawn quoted Maroof Afzal as saying. Also read: Post IMF bailout, Pakistan's currency reaches all-time low against US dollar Pakistan's Senate Standing Committee on Information and Technology has been pushing the IT ministry to ask Paypal to launch its services in the country. × In February, Pakistan's finance minister Asad Umar had said that talks to bring PayPal in the country are underway while rubbishing reports that the federal government was impeding the company's entry into the Pakistani market. He had claimed that it is actually "chasing" the company. In November 2015, the IT Ministry had announced that it was set to invite PayPal and Chinese e-commerce giant Alibaba to offer their services in Pakistan. The move followed a decision by the global Financial Action Task Force to remove Pakistan from its list of high-risk and non-cooperative jurisdictions linked to money laundering. (With inputs from agencies)

Paypal not ready to introduce services in Pakistan: Secretary of Information Technology ministry

Pakistan's currency plunged to a new all-time low against the US dollar on Thursday after the government last week reached a <a href="https://www.wionews.com/south-asia/imf-agrees-to-6-billion-bailout-for-pakistan-but-wants-action-on-terror-funding-218179">preliminary agreement with the International Monetary Fund</a> for $6 billion bailout.

The Pakistani rupee slipped 3.1 per cent to 147 rupees a dollar on Thursday morning in&nbsp;another all-time low for the second consecutive day.

The rupee was trading&nbsp;at 141.5 on Wednesday, prompting country's Prime Minister Imran Khan to set up a committee to control the devaluation of the local currency.

According to a report by local media, there is speculation that it may slide further.

Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington.

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For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, <a href="https://www.wionews.com/south-asia/pakistan-stocks-crash-as-pm-imran-receives-insufficient-imf-bailout-218461">soaring inflation</a>, and mounting debt.

Discontent is already growing over measures the government has taken in the last year to fend off the crisis, including devaluing the rupee by some 30 percent since January 2018, sending inflation to five-year highs.

Analysts had warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Imran Khan's promise to build an Islamic welfare state, as the country is forced to tighten its purse strings.

Pakistan has had 21 bailouts since it joined the IMF in 1950. Its most recent loan was issued in 2013, worth $6.6 billion.

(With inputs from agencies)

Pakistan's currency plunged to a new all-time low against the US dollar on Thursday after the government last week reached a preliminary agreement with the International Monetary Fund for $6 billion bailout.

Pakistan's currency plunged to a new all-time low against the US dollar on Thursday after the government last week reached a preliminary agreement with the International Monetary Fund for $6 billion bailout. The Pakistani rupee slipped 3.1 per cent to 147 rupees a dollar on Thursday morning in another all-time low for the second consecutive day. The rupee was trading at 141.5 on Wednesday, prompting country's Prime Minister Imran Khan to set up a committee to control the devaluation of the local currency. According to a report by local media, there is speculation that it may slide further. Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington. × For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, soaring inflation, and mounting debt. Discontent is already growing over measures the government has taken in the last year to fend off the crisis, including devaluing the rupee by some 30 percent since January 2018, sending inflation to five-year highs. Analysts had warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Imran Khan's promise to build an Islamic welfare state, as the country is forced to tighten its purse strings. Pakistan has had 21 bailouts since it joined the IMF in 1950. Its most recent loan was issued in 2013, worth $6.6 billion. (With inputs from agencies)

Post IMF bailout, Pakistan's currency reaches all-time low against US dollar

Pakistani stocks fell on Monday, a day after the country received its 22nd bailout from the <a href="https://www.wionews.com/south-asia/decisive-policies-and-reforms-must-for-pakistans-economic-stability-imf-218413">International Monetary Fund (IMF)</a>, as investors and analysts expressed doubt over the reported conditions of the deal.

The benchmark KSE-100 index of the <a href="https://www.wionews.com/south-asia/pakistan-to-continue-talks-with-imf-on-bailout-over-weekend-217714">Pakistan Stock Exchange (PSX)</a> dropped by 816 points or 2.41 per cent to close at 33,900 points.

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"The investors have taken the IMF conditions as negative, especially with regard to free float of the rupee against the dollar and increasing the interest rate," Yawar Uz-Zaman, head of Research at Shajar Capital, a brokerage house in Karachi.

Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington.

<a href="https://www.wionews.com/pakistan/pakistan-media-and-people-scared-of-speaking-against-cpec-us-lawmakers-told-218824">Also read:&nbsp;Pakistan media and people scared of speaking against CPEC, US lawmakers told</a>

For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, soaring inflation, and mounting debt.

Analysts have warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Prime Minister Imran Khan's grand promises as the country is forced to tighten its purse strings.

Khan had long vowed not to go to the IMF, and his political opponents were quick to deride the announcement, with one particularly dark tweet from Bilawal Bhutto Zardari, son of assassinated prime minister Benazir Bhutto.

"So who's got our PM on suicide watch then? #PTIMF" he tweeted, using a hashtag to play on the name of Khan's party -&nbsp;Pakistan Tehreek-e-Insaf, or PTI -&nbsp;and the IMF.&nbsp;

Some analysts suggested $6 billion would not be enough to pull the country back from the brink, with Zaman describing it as "insufficient".&nbsp;

Mohammad Sohail, CEO of Karachi-based brokerage house Topline Securities, said they believe Pakistan's annual foreign payments could be as high as $14 billion.&nbsp;

If Khan's government can secure more funding from donors including China and Saudi Arabia, from whom Khan has already raised billions, then it could be sufficient, he said. "If not, it would not be enough for the foreign payments."

Salman Ahmed, head of institutional sales at Aba Habib Ali, a brokerage house in Karachi, said the amount was less important than the fact a deal had been struck at all.

"This will give the government a breathing space, and now it can look around for other sources of financing foreign debts," he said.

Pakistani stocks fell on Monday, a day after the country received its 22nd bailout from the International Monetary Fund (IMF), as investors and analysts expressed doubt over the reported conditions of the deal.

Pakistani stocks fell on Monday, a day after the country received its 22nd bailout from the International Monetary Fund (IMF), as investors and analysts expressed doubt over the reported conditions of the deal. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) dropped by 816 points or 2.41 per cent to close at 33,900 points. "The investors have taken the IMF conditions as negative, especially with regard to free float of the rupee against the dollar and increasing the interest rate," Yawar Uz-Zaman, head of Research at Shajar Capital, a brokerage house in Karachi. Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington. Also read: Pakistan media and people scared of speaking against CPEC, US lawmakers told For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, soaring inflation, and mounting debt. Analysts have warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Prime Minister Imran Khan's grand promises as the country is forced to tighten its purse strings. Khan had long vowed not to go to the IMF, and his political opponents were quick to deride the announcement, with one particularly dark tweet from Bilawal Bhutto Zardari, son of assassinated prime minister Benazir Bhutto. "So who's got our PM on suicide watch then? #PTIMF" he tweeted, using a hashtag to play on the name of Khan's party - Pakistan Tehreek-e-Insaf, or PTI - and the IMF. Some analysts suggested $6 billion would not be enough to pull the country back from the brink, with Zaman describing it as "insufficient". Mohammad Sohail, CEO of Karachi-based brokerage house Topline Securities, said they believe Pakistan's annual foreign payments could be as high as $14 billion. If Khan's government can secure more funding from donors including China and Saudi Arabia, from whom Khan has already raised billions, then it could be sufficient, he said. "If not, it would not be enough for the foreign payments." Salman Ahmed, head of institutional sales at Aba Habib Ali, a brokerage house in Karachi, said the amount was less important than the fact a deal had been struck at all. "This will give the government a breathing space, and now it can look around for other sources of financing foreign debts," he said.

Pakistan stocks crash as PM Imran receives 'insufficient' IMF bailout

Pakistan Gets Another Bailout From IMF, But With Riders.

Gravitas: Is The IMF Bailout A Lifeline For Pakistan's Economy?

The talks between cash-strapped Pakistan and the <a href="https://www.wionews.com/pakistan/imran-khan-asks-people-of-pakistan-to-bear-with-rising-inflation-217696">IMF</a> will continue over the weekend after the parleys between the two sides reached a deadlock due to <a href="https://www.wionews.com/south-asia/pakistan-growth-to-hit-eight-year-low-as-imf-bailout-looms-217509">Prime Minister Imran Khan</a>'s reservations over heavy taxation the people would have to bear, according to a media report on Saturday.

Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around $6.5 billion.

We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend, Khaqan Hasan Najeeb, the spokesman of the Finance Ministry, was quoted as saying by the Express Tribune.

Sources in the ministry of finance said that there were at least three main sticking points that led to inconclusive talks till the last day of the IMF visit. As of Thursday, the top management of the Ministry of Finance was hopeful to conclude the deal and the IMF team had planned to return on May 11, the report said.

But things went off the track after the IMF insisted on the inclusion of some new conditions in the programme, which appeared unreasonable.

Prime Minister Imran Khan also expressed reservations over massive additional taxes burden that the nation will bear from July this year, provided both sides reach an agreement, it said.

Pakistan has accepted the IMF's demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowing from the central bank and reinitiating the privatisation programme.

The talks remained inconclusive despite Pakistan conceded to almost everything that the IMF asked for, the report said.

Pakistan and the IMF are engaged to finalise the bailout package for the past eight months. It was the second visit by the IMF staff level team during the past five months that again could not conclude the deal within the due time.

The sources said the IMF has sent a draft of the proposed agreement to Washington for vetting that includes some new conditions which were not part of negotiations in the first round of talks.&nbsp;

The talks between cash-strapped Pakistan and the IMF will continue over the weekend after the parleys between the two sides reached a deadlock due to Prime Minister Imran Khan's reservations over heavy taxation the people would have to bear, according to a media report on Saturday.

The talks between cash-strapped Pakistan and the IMF will continue over the weekend after the parleys between the two sides reached a deadlock due to Prime Minister Imran Khan's reservations over heavy taxation the people would have to bear, according to a media report on Saturday. Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around $6.5 billion. We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend, Khaqan Hasan Najeeb, the spokesman of the Finance Ministry, was quoted as saying by the Express Tribune. Sources in the ministry of finance said that there were at least three main sticking points that led to inconclusive talks till the last day of the IMF visit. As of Thursday, the top management of the Ministry of Finance was hopeful to conclude the deal and the IMF team had planned to return on May 11, the report said. But things went off the track after the IMF insisted on the inclusion of some new conditions in the programme, which appeared unreasonable. Prime Minister Imran Khan also expressed reservations over massive additional taxes burden that the nation will bear from July this year, provided both sides reach an agreement, it said. Pakistan has accepted the IMF's demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowing from the central bank and reinitiating the privatisation programme. The talks remained inconclusive despite Pakistan conceded to almost everything that the IMF asked for, the report said. Pakistan and the IMF are engaged to finalise the bailout package for the past eight months. It was the second visit by the IMF staff level team during the past five months that again could not conclude the deal within the due time. The sources said the IMF has sent a draft of the proposed agreement to Washington for vetting that includes some new conditions which were not part of negotiations in the first round of talks.

Pakistan to continue talks with IMF on bailout over weekend

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A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China.

Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year.

According to adviser and spokesman for the Ministry of Finance Khaqan Najeeb, the IMF team will meet officials of the ministry, the Federal Board of Revenue and the State Bank during its visit.

The two sides will discuss the possibility of a $7 to $8 billion loans for Pakistan, Geo News reported.

"The talks aim to determine the terms and conditions of the three-year programme," an official at the finance ministry told PTI.

The details of the package will be finalised between the funds' team lead by the director for the Middle East and Central Asia Ernesto Meris and Finance Secretary Yunus Dhaga.

The talks will continue for about a week, the official said.

Pakistan has already finalised the summary of data on various economic matters as demanded by the IMF, including details about the performance of the economy in the first nine months of the current fiscal year.

The IMF will also get details about the upcoming budget for 2019-20 which is expected to be announced towards the end of May.

Details about loans from China and the IMF insistence to increase the tax-to-GDP ratio to 13.2 per cent were some of the sticking points to finalise the package.

It is not clear how much assistance IMF will provide but Pakistan is expecting between $6-8 billion, the official said.

Pakistan was already taking measures to fulfil some of the pre-conditions to increase exports, widen the tax base and adjust the exchange rate.

Prime Minister Khan met IMF Director Lagarde on Friday on the sidelines of the second Belt and Road Forum in Beijing, China.

During the meeting, they agreed on the importance of the IMF programme for the country and reviewed the relationship between Pakistan and the global lender, the report said.

Khan had identified areas of reforms and initiatives being undertaken by his government to stabilise the economy, control inflation and achieve fiscal balance.

They also agreed on the need for a social safety net for vulnerable groups of society.

"We discussed prospects for a comprehensive policy package and international financial support to help stabilise the economy of Pakistan, and also the need to strengthen governance and protect the poor," Lagarde said in a post after the meeting.

Pakistan wants the IMF to focus on the long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.&nbsp;

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China.

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China. Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year. According to adviser and spokesman for the Ministry of Finance Khaqan Najeeb, the IMF team will meet officials of the ministry, the Federal Board of Revenue and the State Bank during its visit. The two sides will discuss the possibility of a $7 to $8 billion loans for Pakistan, Geo News reported. "The talks aim to determine the terms and conditions of the three-year programme," an official at the finance ministry told PTI. The details of the package will be finalised between the funds' team lead by the director for the Middle East and Central Asia Ernesto Meris and Finance Secretary Yunus Dhaga. The talks will continue for about a week, the official said. Pakistan has already finalised the summary of data on various economic matters as demanded by the IMF, including details about the performance of the economy in the first nine months of the current fiscal year. The IMF will also get details about the upcoming budget for 2019-20 which is expected to be announced towards the end of May. Details about loans from China and the IMF insistence to increase the tax-to-GDP ratio to 13.2 per cent were some of the sticking points to finalise the package. It is not clear how much assistance IMF will provide but Pakistan is expecting between $6-8 billion, the official said. Pakistan was already taking measures to fulfil some of the pre-conditions to increase exports, widen the tax base and adjust the exchange rate. Prime Minister Khan met IMF Director Lagarde on Friday on the sidelines of the second Belt and Road Forum in Beijing, China. During the meeting, they agreed on the importance of the IMF programme for the country and reviewed the relationship between Pakistan and the global lender, the report said. Khan had identified areas of reforms and initiatives being undertaken by his government to stabilise the economy, control inflation and achieve fiscal balance. They also agreed on the need for a social safety net for vulnerable groups of society. "We discussed prospects for a comprehensive policy package and international financial support to help stabilise the economy of Pakistan, and also the need to strengthen governance and protect the poor," Lagarde said in a post after the meeting. Pakistan wants the IMF to focus on the long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.

IMF delegation arrives in Pakistan to hold talks on bailout package

Sri Lanka faces a likely collapse in tourism following <a href="https://www.wionews.com/west-asia/islamic-state-claims-responsibility-for-sri-lanka-bombings-212899">Easter Sunday bomb attacks</a> on churches and hotels, which would deal a <a href="https://www.wionews.com/south-asia/danish-billionaire-loses-three-children-in-sri-lanka-blasts-212889">severe blow to the island's economy</a> and financial markets, and potentially force it to seek further IMF assistance.

The International Monetary Fund extended last month a $1.5 billion loan for an extra year into 2020, a key step in keeping foreign investors involved in what so far this year has been a top-performing frontier debt market.

But with growth, and therefore state revenues, now likely to slow significantly, the budget targets agreed with the IMF may have to be reviewed, and the government is expected to resist pressure for any spending cuts before elections expected later this year.

There is even a possibility that more IMF money may be needed if foreign investment falls, adding to the hard currency gap left by plunging tourism receipts.

"If growth slows a lot more and the budget deficit assumptions need to be reassessed, then they'll have to sit down and negotiate something more feasible," said Alex Holmes, Asia economist at Capital Economics.

The Sri Lankan stock index dived 2.6 per cent on Tuesday in its first day of trading after the attacks that killed more than 300 people, while the heavily-managed rupee held steady.

Tourism is Sri Lanka's third-largest and fastest growing source of foreign currency, after remittances and garment exports, accounting for almost $4.4 billion or 4.9 per cent of gross domestic product (GDP) in 2018.

A fall in tourism receipts is bound to weaken the rupee over time. The central bank, whose coffers are too light to defend the currency through interventions, is likely to have to raise interest rates.

This, in turn, would choke lending, hurting consumers and the investment plans of local businesses, while also making it more costly for the government to seek funding from foreign investors via bond markets.

"The central bank may be forced to hike rates again this year," said Win Thin, global head of currency strategy at Brown Brothers Harriman (BBH).

"With foreign reserves very low right now, the central bank cannot actively support the rupee."

After falling 16 per cent against the US dollar last year to record lows, the rupee had gained 4.6 per cent this year as of last week.

Sri Lankan bonds have been among the best performing globally, only bettered by Argentina and Chile. But the main stock index has lost about 10 per cent.

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Weak finances

Sri Lanka's external position was already precarious.

To help fund a record $5.9 billion in foreign loans this year, the country successfully sold $2.4 billion in five-year and 10-year US dollar bonds last month, but that was right after the IMF extension and amid bets of looser monetary policy.

In January, Sri Lanka used its reserves to repay debt worth $1 billion. It had about $5 billion left in February, the least since April 2017, and only enough to cover two months of imports and about two-thirds of its short-term external debt, according to BBH calculations.

Colombo also needs to finance a current account deficit of about 3 per cent of GDP.

Prime Minister Ranil Wickremesinghe is already facing heavy criticism domestically for higher taxes, and tight monetary and fiscal policies that have crimped growth to a 17-year low.

Having emerged from a 51-day political crisis in which President Maithripala Sirisena sacked and replaced him with pro-China former president Mahinda Rajapaksa - a decision which was later reversed - Wickremesinghe set an ambitious fiscal deficit goal of 4.4 per cent of GDP, compared with 5.3 per cent in 2018.

But he also boosted spending on state employees, pensioners and the armed forces and promised more funds for rural infrastructure, leading economists to doubt the targets. A presidential vote is expected later this year followed by a general election in 2020.

"Given the fact they have repayments coming up for sovereign bonds, it could lead to more pressure on foreign currency reserves. So, it's a near term negative for the tourism sector and also market sentiment as well," said Ruchir Desai, fund manager at Asia Frontier Capital, who co-manages the $16 million AFC Asia Frontier Fund.

"Valuations are cheap, no doubt... but until they get some kind of political unity which can result in stable policy-making, we will probably remain underweight (equities) until the elections."

Sri Lanka faces a likely collapse in tourism following Easter Sunday bomb attacks on churches and hotels, which would deal a severe blow to the island's economy and financial markets, and potentially force it to seek further IMF assistance.

Sri Lanka faces a likely collapse in tourism following Easter Sunday bomb attacks on churches and hotels, which would deal a severe blow to the island's economy and financial markets, and potentially force it to seek further IMF assistance. The International Monetary Fund extended last month a $1.5 billion loan for an extra year into 2020, a key step in keeping foreign investors involved in what so far this year has been a top-performing frontier debt market. But with growth, and therefore state revenues, now likely to slow significantly, the budget targets agreed with the IMF may have to be reviewed, and the government is expected to resist pressure for any spending cuts before elections expected later this year. There is even a possibility that more IMF money may be needed if foreign investment falls, adding to the hard currency gap left by plunging tourism receipts. "If growth slows a lot more and the budget deficit assumptions need to be reassessed, then they'll have to sit down and negotiate something more feasible," said Alex Holmes, Asia economist at Capital Economics. The Sri Lankan stock index dived 2.6 per cent on Tuesday in its first day of trading after the attacks that killed more than 300 people, while the heavily-managed rupee held steady. Tourism is Sri Lanka's third-largest and fastest growing source of foreign currency, after remittances and garment exports, accounting for almost $4.4 billion or 4.9 per cent of gross domestic product (GDP) in 2018. A fall in tourism receipts is bound to weaken the rupee over time. The central bank, whose coffers are too light to defend the currency through interventions, is likely to have to raise interest rates. This, in turn, would choke lending, hurting consumers and the investment plans of local businesses, while also making it more costly for the government to seek funding from foreign investors via bond markets. "The central bank may be forced to hike rates again this year," said Win Thin, global head of currency strategy at Brown Brothers Harriman (BBH). "With foreign reserves very low right now, the central bank cannot actively support the rupee." After falling 16 per cent against the US dollar last year to record lows, the rupee had gained 4.6 per cent this year as of last week. Sri Lankan bonds have been among the best performing globally, only bettered by Argentina and Chile. But the main stock index has lost about 10 per cent. × Weak finances Sri Lanka's external position was already precarious. To help fund a record $5.9 billion in foreign loans this year, the country successfully sold $2.4 billion in five-year and 10-year US dollar bonds last month, but that was right after the IMF extension and amid bets of looser monetary policy. In January, Sri Lanka used its reserves to repay debt worth $1 billion. It had about $5 billion left in February, the least since April 2017, and only enough to cover two months of imports and about two-thirds of its short-term external debt, according to BBH calculations. Colombo also needs to finance a current account deficit of about 3 per cent of GDP. Prime Minister Ranil Wickremesinghe is already facing heavy criticism domestically for higher taxes, and tight monetary and fiscal policies that have crimped growth to a 17-year low. Having emerged from a 51-day political crisis in which President Maithripala Sirisena sacked and replaced him with pro-China former president Mahinda Rajapaksa - a decision which was later reversed - Wickremesinghe set an ambitious fiscal deficit goal of 4.4 per cent of GDP, compared with 5.3 per cent in 2018. But he also boosted spending on state employees, pensioners and the armed forces and promised more funds for rural infrastructure, leading economists to doubt the targets. A presidential vote is expected later this year followed by a general election in 2020. "Given the fact they have repayments coming up for sovereign bonds, it could lead to more pressure on foreign currency reserves. So, it's a near term negative for the tourism sector and also market sentiment as well," said Ruchir Desai, fund manager at Asia Frontier Capital, who co-manages the $16 million AFC Asia Frontier Fund. "Valuations are cheap, no doubt... but until they get some kind of political unity which can result in stable policy-making, we will probably remain underweight (equities) until the elections."

Sri Lanka may need more IMF help as blasts threaten tourism

IMF warned of possiblity of Pak blacklisting by FATF. Watch complete video to know more.

India warns IMF against Pakistan bailout

International Monetary Fund (IMF) mission's visit to Pakistan for finalising a bailout package has been postponed until May.

"Both sides are still engaged in an intense conversation on the final details of that full agreement. So, the IMF mission is now more likely to visit Islamabad in May, not April," a government source, who did not want to be identified, told The Dawn.

Last month, Pakistan's Finance Minister Asad Umar had announced that the mission would visit Islamabad in April to sign an agreement.

However, the IMF, during spring meetings with Umar last week, had expressed its reservations over China's financial assistance to Pakistan.

The IMF has asked Islamabad to share details of loans that it has received from Beijing.

It has also asked for a written guarantee from Pakistan and China that IMF assistance will not be used to repay loans to China, reported Express Tribune.

Besides these, the mission has also asked Islamabad to make State Bank completely independent.

Notably, it will be the 14th package with the IMF, if released.

The Imran Khan government has professed that previous bailout packages could not be fully implemented owing to the conditions they came with.

Umar is expected to visit China later this month to discuss the IMF`s concerns over the China Pakistan Economic Corridor (CPEC).

International Monetary Fund (IMF) mission's visit to Pakistan for finalising a bailout package has been postponed until May. "Both sides are still engaged in an intense conversation on the final details of that full agreement.

International Monetary Fund (IMF) mission's visit to Pakistan for finalising a bailout package has been postponed until May. "Both sides are still engaged in an intense conversation on the final details of that full agreement. So, the IMF mission is now more likely to visit Islamabad in May, not April," a government source, who did not want to be identified, told The Dawn. Last month, Pakistan's Finance Minister Asad Umar had announced that the mission would visit Islamabad in April to sign an agreement. However, the IMF, during spring meetings with Umar last week, had expressed its reservations over China's financial assistance to Pakistan. The IMF has asked Islamabad to share details of loans that it has received from Beijing. It has also asked for a written guarantee from Pakistan and China that IMF assistance will not be used to repay loans to China, reported Express Tribune. Besides these, the mission has also asked Islamabad to make State Bank completely independent. Notably, it will be the 14th package with the IMF, if released. The Imran Khan government has professed that previous bailout packages could not be fully implemented owing to the conditions they came with. Umar is expected to visit China later this month to discuss the IMF`s concerns over the China Pakistan Economic Corridor (CPEC).

International Monetary Fund's visit to Pakistan postponed

International Monetary Fund (IMF), who is currently considering a bailout <a href="https://www.wionews.com/south-asia/pakistan-foreign-minister-mahmood-qureshi-hails-chinas-support-in-challenging-times-204367">package for Pakistan</a>, has asked the latter to share details of loans that it has received from China.&nbsp;

According to the Express Tribune, IMF, during a recent meeting, voiced concern about Beijing's financial assistance to Islamabad.

However, Pakistan assured the IMF that there is no overlapping between the two programmes (IMF bailout and <a href="https://www.wionews.com/world/china-denies-cpec-intensified-pakistans-economic-risks-208789">CPEC)</a>, reported Dawn.&nbsp;

Pakistan Finance Minister Asad Umar has said that Pakistan and the IMF will reach a full agreement in the coming days.&nbsp;

"During the last two days, we have, more or less, reached an understanding. In the next day or two, we hope to reach a full agreement and then we will share the details with you," the finance minister said after a meeting with World Bank Group President David R Malpass and senior officials of IMF.&nbsp;

In the past few years, Pakistan and China have signed about half a dozen projects of worth $6.2 billion under CPEC.&nbsp;

Besides this, it has also granted commercial loans worth $6.5 billion. China has also deposited $2 billion in State Bank of Pakistan.&nbsp;

In October last year, Pakistan had formally requested the IMF for yet another economic assistance package.&nbsp;

The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks.&nbsp;

The US views Pakistan as a safe haven for terrorists and insurgents, responsible for the 17-year-old war going on in neighbouring Afghanistan.&nbsp;

Pentagon, in September, had reportedly cut off aid worth $300 million due to growing concerns regarding Islamabad`s failure to tackle the militants.&nbsp;

In August, the US had also slashed security-oriented financial aid to Pakistan.&nbsp;

Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time.&nbsp;

It secured loans up to $6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October.&nbsp;

Islamabad has been seeking commercial loans of $2 billion from Beijing.&nbsp;

China has already refused to provide a balance of payment (BoP) support to Pakistan.

International Monetary Fund (IMF), who is currently considering a bailout package for Pakistan, has asked the latter to share details of loans that it has received from China.

International Monetary Fund (IMF), who is currently considering a bailout package for Pakistan, has asked the latter to share details of loans that it has received from China. According to the Express Tribune, IMF, during a recent meeting, voiced concern about Beijing's financial assistance to Islamabad. However, Pakistan assured the IMF that there is no overlapping between the two programmes (IMF bailout and CPEC), reported Dawn. Pakistan Finance Minister Asad Umar has said that Pakistan and the IMF will reach a full agreement in the coming days. "During the last two days, we have, more or less, reached an understanding. In the next day or two, we hope to reach a full agreement and then we will share the details with you," the finance minister said after a meeting with World Bank Group President David R Malpass and senior officials of IMF. In the past few years, Pakistan and China have signed about half a dozen projects of worth $6.2 billion under CPEC. Besides this, it has also granted commercial loans worth $6.5 billion. China has also deposited $2 billion in State Bank of Pakistan. In October last year, Pakistan had formally requested the IMF for yet another economic assistance package. The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks. The US views Pakistan as a safe haven for terrorists and insurgents, responsible for the 17-year-old war going on in neighbouring Afghanistan. Pentagon, in September, had reportedly cut off aid worth $300 million due to growing concerns regarding Islamabad`s failure to tackle the militants. In August, the US had also slashed security-oriented financial aid to Pakistan. Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time. It secured loans up to $6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October. Islamabad has been seeking commercial loans of $2 billion from Beijing. China has already refused to provide a balance of payment (BoP) support to Pakistan.

International Monetary Fund asks Pakistan to share details of loans from China

The&nbsp;Belt&nbsp;and&nbsp;Road&nbsp;Forum&nbsp;will be a good opportunity for&nbsp;China&nbsp;to identify&nbsp;its&nbsp;direction&nbsp;and the&nbsp;policy&nbsp;framework&nbsp;within which they want to develop this very large initiative,&nbsp;IMF&nbsp;chief <a href="https://www.google.com/url?q=https://www.wionews.com/south-asia/i-reiterated-imfs-stand-to-support-pakistan-imf-chief-lagarde-on-bailout-aid-196452&amp;sa=U&amp;ved=0ahUKEwjz8eaL6szhAhUViXAKHTgPBW8QFggIMAE&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1Y2wMVc4YfdS9ITHa3vqD5">Christine Lagarde</a> said in Washington, DC&nbsp;ahead of the World Bank-IMF&nbsp;Spring Meetings.

During an exclusive interview with the&nbsp;China&nbsp;Global Television Network (CGTN) on April 2, Lagarde expressed her expectations on the second&nbsp;Belt&nbsp;and&nbsp;Road&nbsp;Forum&nbsp;for International Cooperation, which is to be held in late April in Beijing.

The<a href="https://www.google.com/url?q=https://www.wionews.com/world/imf-ceos-sound-warnings-as-leaders-gather-in-davos-191910&amp;sa=U&amp;ved=0ahUKEwjz8eaL6szhAhUViXAKHTgPBW8QFggRMAQ&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1c15ADR4kYYoW56bPNmeJ3">&nbsp;IMF&nbsp;</a>chief&nbsp;said the world is short of investment in infrastructure and the&nbsp;Belt&nbsp;and&nbsp;Road&nbsp;Initiative is certainly welcome and encouraged as it focuses on the financing of infrastructure around the world.

"We have also encouraged and called the attention of Chinese authorities to the fact that those projects have to be adequate and appropriate for the countries' needs, that those financings have to be respectful of debt sustainability. We have also mentioned that the macro-economic&nbsp;framework&nbsp;of the countries has to be taken into account when those investments are taking place. So, it is a subtle balance between infrastructure needs and the financing to go with it," said Lagarde.

"With full respect of the countries' sovereignty, debt sustainability, macro-economic equilibrium, I think that the Chinese authorities themselves are now really paying attention to that," she added.

As for the upcoming&nbsp;Belt&nbsp;and&nbsp;Road&nbsp;Forum, Lagarde regards it a good opportunity for&nbsp;China, the beneficiary countries and international institutions.

"I believe it will be a very good opportunity for the authorities in&nbsp;China&nbsp;to really identify their&nbsp;direction, the&nbsp;policy&nbsp;framework&nbsp;within which they want to develop this very large initiative and for the beneficiary countries and international institutions to also raise their voice as to the format and the&nbsp;framework&nbsp;within which those investments will be efficient and will be sustainable," said Lagarde.

The BRI, proposed by Chinese President Xi Jinping in 2013, aims to build a trade and infrastructure network connecting Asia with Europe, Africa and beyond.

The Belt and Road Forum will be a good opportunity for China to identify its direction and the policy framework within which they want to develop this very large initiative, IMF chief Christine Lagarde said in Washington, DC ahead of the World Bank-IMF Spring Meetings.

The Belt and Road Forum will be a good opportunity for China to identify its direction and the policy framework within which they want to develop this very large initiative, IMF chief Christine Lagarde said in Washington, DC ahead of the World Bank-IMF Spring Meetings. During an exclusive interview with the China Global Television Network (CGTN) on April 2, Lagarde expressed her expectations on the second Belt and Road Forum for International Cooperation, which is to be held in late April in Beijing. The IMF chief said the world is short of investment in infrastructure and the Belt and Road Initiative is certainly welcome and encouraged as it focuses on the financing of infrastructure around the world. "We have also encouraged and called the attention of Chinese authorities to the fact that those projects have to be adequate and appropriate for the countries' needs, that those financings have to be respectful of debt sustainability. We have also mentioned that the macro-economic framework of the countries has to be taken into account when those investments are taking place. So, it is a subtle balance between infrastructure needs and the financing to go with it," said Lagarde. "With full respect of the countries' sovereignty, debt sustainability, macro-economic equilibrium, I think that the Chinese authorities themselves are now really paying attention to that," she added. As for the upcoming Belt and Road Forum, Lagarde regards it a good opportunity for China, the beneficiary countries and international institutions. "I believe it will be a very good opportunity for the authorities in China to really identify their direction, the policy framework within which they want to develop this very large initiative and for the beneficiary countries and international institutions to also raise their voice as to the format and the framework within which those investments will be efficient and will be sustainable," said Lagarde. The BRI, proposed by Chinese President Xi Jinping in 2013, aims to build a trade and infrastructure network connecting Asia with Europe, Africa and beyond.

IMF chief lauds Belt and Road Initiative, says it focuses on financing global infrastructure

A new trade war sparked by <a href="https://www.wionews.com/world/white-house-gets-report-that-could-trigger-auto-tariffs-198123">US automotive tariffs</a> has the potential to do much more damage to global economic growth than the US-China trade conflict has done, International Monetary Fund chief economist Gita Gopinath said on Thursday.

Gopinath told Reuters in an interview that such a conflict would affect exports from many more countries and impose retaliatory duties on US goods from numerous trading partners.

"We are concerned about what auto tariffs would do to the global economy at a time when we are more in the recovery phase," Gopinath said on the sidelines of the IMF and World Bank annual meetings in Washington.

Should trade conflicts spill over into the automotive sector, it would also disrupt larger parts of global manufacturing supply chains, she said.

"So that would actually be far more costly for the world economy than just the US-China trade tensions that we had," said Gopinath, an Indian-born, Harvard University professor.

US President Donald Trump has threatened to levy tariffs of some 25 per cent on imported vehicles and auto parts on national security grounds, invoking a 1962 trade law aimed at safeguarding the Cold War-era military industrial base.

Trump has openly admitted that he is using the threat of auto tariffs to draw trading partners including Japan and the European Union into trade negotiations. But he also has recently threatened to impose car duties on Mexico unless it improves security at the US border.

The Commerce Department has submitted recommendations of its "Section 232" study into whether automotive imports constitute a threat to national security to the White House but has not revealed its contents. Under the Section 232 provision, Trump has until about May 17 to act on any automotive tariff recommendations contained in the report.

Should he impose tariffs, they would hit hard in the second half of 2019, about the time when the IMF is predicting a rebound in global growth due to a pause in interest rate hikes by the Federal Reserve and other major central banks.

According to the IMF's World Economic Outlook released on Tuesday, the growth rebound is set to continue into 2020, but the Fund has warned that the outlook was "precarious" and vulnerable to numerous risks.

Gopinath said the trade was the biggest among these risks, which also include rising corporate and sovereign debt, stresses in some large emerging markets and a chaotic exit of Britain from the European Union.

US-China lift?

But she said that a trade deal between the United States and China had the potential to lift global growth if tariffs on Chinese and US goods are removed. The Fund's latest forecasts assume that 25 per cent tariffs on $50 billion worth of Chinese goods and 10 per cent tariffs on $200 billion in Chinese goods remain in place.

US and Chinese negotiators are working to try to complete an agreement.

"If it turned out that all tariffs were lifted between China and the US that were put in place last year, then that would be a positive to the outlook."

She said the impact on growth is highly dependent on the contents of the deal, and a deal that fails to resolve the tensions for the long term could leave a cloud of uncertainty hanging over business investment - a factor that sapped growth in 2018.

"We've been pushing for an early, durable resolution of the trade tensions," she said. "Not something that will be revisited every three or six months."

A new trade war sparked by US automotive tariffs has the potential to do much more damage to global economic growth than the US-China trade conflict has done, International Monetary Fund chief economist Gita Gopinath said on Thursday.

A new trade war sparked by US automotive tariffs has the potential to do much more damage to global economic growth than the US-China trade conflict has done, International Monetary Fund chief economist Gita Gopinath said on Thursday. Gopinath told Reuters in an interview that such a conflict would affect exports from many more countries and impose retaliatory duties on US goods from numerous trading partners. "We are concerned about what auto tariffs would do to the global economy at a time when we are more in the recovery phase," Gopinath said on the sidelines of the IMF and World Bank annual meetings in Washington. Should trade conflicts spill over into the automotive sector, it would also disrupt larger parts of global manufacturing supply chains, she said. "So that would actually be far more costly for the world economy than just the US-China trade tensions that we had," said Gopinath, an Indian-born, Harvard University professor. US President Donald Trump has threatened to levy tariffs of some 25 per cent on imported vehicles and auto parts on national security grounds, invoking a 1962 trade law aimed at safeguarding the Cold War-era military industrial base. Trump has openly admitted that he is using the threat of auto tariffs to draw trading partners including Japan and the European Union into trade negotiations. But he also has recently threatened to impose car duties on Mexico unless it improves security at the US border. The Commerce Department has submitted recommendations of its "Section 232" study into whether automotive imports constitute a threat to national security to the White House but has not revealed its contents. Under the Section 232 provision, Trump has until about May 17 to act on any automotive tariff recommendations contained in the report. Should he impose tariffs, they would hit hard in the second half of 2019, about the time when the IMF is predicting a rebound in global growth due to a pause in interest rate hikes by the Federal Reserve and other major central banks. According to the IMF's World Economic Outlook released on Tuesday, the growth rebound is set to continue into 2020, but the Fund has warned that the outlook was "precarious" and vulnerable to numerous risks. Gopinath said the trade was the biggest among these risks, which also include rising corporate and sovereign debt, stresses in some large emerging markets and a chaotic exit of Britain from the European Union. US-China lift? But she said that a trade deal between the United States and China had the potential to lift global growth if tariffs on Chinese and US goods are removed. The Fund's latest forecasts assume that 25 per cent tariffs on $50 billion worth of Chinese goods and 10 per cent tariffs on $200 billion in Chinese goods remain in place. US and Chinese negotiators are working to try to complete an agreement. "If it turned out that all tariffs were lifted between China and the US that were put in place last year, then that would be a positive to the outlook." She said the impact on growth is highly dependent on the contents of the deal, and a deal that fails to resolve the tensions for the long term could leave a cloud of uncertainty hanging over business investment - a factor that sapped growth in 2018. "We've been pushing for an early, durable resolution of the trade tensions," she said. "Not something that will be revisited every three or six months."

Auto tariff war would hurt more than US-China fight: IMF chief economist

Noting that the level of non-performing loans in India remains high, the International Monetary Fund has favoured bolstering the level of capitalisation of some banks, particularly government-owned banks.&nbsp;

Anna Ilyina, Division Chief of IMF Monetary and Capital Markets Department, said Wednesday that bolstering the level of capitalisation was one of the recommendations of the Financial Sector Assessment Programme (FSAP) for India.&nbsp;

"The level of non-performing loans (NPLs) in India remains high. And the level of the capitalisation of some banks, particularly government-owned banks, should be bolstered," said Ilyina.&nbsp;

"There were some steps that were taken by the authorities to boost capital buffers in banks and also to improve governance in state-owned banks that have had some positive impact," Ilyina said.

The institutional mechanisms for resolution and the recognition of NPLs are, of course, an extremely important part of the process of cleaning up the banking system of non-performing loans, she said adding that the authorities should continue working along these lines.

Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department of the IMF, said that there continues to be a high stock of Non-performing Assets in India.&nbsp;

"There has been some progression, but we would welcome further progress on the non-performing assets in India,"&nbsp;he said responding to a question on Indian banking system.&nbsp;

The Indian government in February said bad loans fell by Rs 31,168 crore in April-December 2018-19 compared to NPAs worth Rs 8,95,601 crore at March-end 2018.&nbsp;

Noting that the level of non-performing loans in India remains high, the International Monetary Fund has favoured bolstering the level of capitalisation of some banks, particularly government-owned banks.

Noting that the level of non-performing loans in India remains high, the International Monetary Fund has favoured bolstering the level of capitalisation of some banks, particularly government-owned banks. Anna Ilyina, Division Chief of IMF Monetary and Capital Markets Department, said Wednesday that bolstering the level of capitalisation was one of the recommendations of the Financial Sector Assessment Programme (FSAP) for India. "The level of non-performing loans (NPLs) in India remains high. And the level of the capitalisation of some banks, particularly government-owned banks, should be bolstered," said Ilyina. "There were some steps that were taken by the authorities to boost capital buffers in banks and also to improve governance in state-owned banks that have had some positive impact," Ilyina said. The institutional mechanisms for resolution and the recognition of NPLs are, of course, an extremely important part of the process of cleaning up the banking system of non-performing loans, she said adding that the authorities should continue working along these lines. Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department of the IMF, said that there continues to be a high stock of Non-performing Assets in India. "There has been some progression, but we would welcome further progress on the non-performing assets in India," he said responding to a question on Indian banking system. The Indian government in February said bad loans fell by Rs 31,168 crore in April-December 2018-19 compared to NPAs worth Rs 8,95,601 crore at March-end 2018.

India needs to bolster level of capitalisation of government-owned banks: IMF

World governments are working on recognising a Venezuelan government, a key step before international aid can flow into the crisis-stricken country, IMF chief Christine Lagarde said Thursday.

The South American oil-producer is facing an economic and humanitarian crisis that resembles the collapse of a country at war.

But without a recognised government, after Venezuela's national assembly leader Juan Guaido in late January challenged the legitimacy of embattled leader Nicolas Maduro, the IMF, World Bank and other institutions cannot help with financing.

"We are really very, very concerned about the humanitarian crisis that is unfolding in front of our eyes in Venezuela," Lagarde said.

"We are waiting to be guided by our membership and I know that it is in process at the moment as we speak from quite a few members. As soon as that happens we will follow through."

The IMF has had no direct access to events on the ground as the global crisis-lender had not been welcome in Venezuela for about 15 years, she said.

However, "We have done as much preparatory work as we could... in order to be prepared to act as quickly and as swiftly as we can," Lagarde said.

The IMF estimates that Venezuela’s economy will contract by one-fourth in 2019, and a further 10 per cent in 2020 -- a greater collapse than projected in the October 2018, along with unprecedented hyperinflation of 10 million per cent.

She stressed that the international response to the Venezuela crisis -- which is facing shortages of food and medicine, power outages, and an exodus of its citizens -- would have to be a "multi-pronged effort" by many institutions.

Her comments echoed those of newly-installed World Bank President David Malpass, who also told reporters that the institution's shareholders would decide when and how to engage with Caracas.

Malpass also said Venezuela was of "deep concern" and was facing a "humanitarian crisis."

"As far as the political side, we will be guided by the international community and the views of our shareholders," he added. "This is something that is not chosen by the bank but by the shareholders of the bank."

The IMF said Wednesday it would have no contact with Caracas, and would not allow the country access to its IMF-held reserves, until the international community recognised a government in Caracas.

The United States is among about four dozen countries to recognise Guaido, and Vice President Mike Pence on Wednesday called on the UN to do so as well.

The Organisation of American States' permanent council and the Inter-American Development Bank have recognised Guaido's representative.

 
&nbsp;

World governments are working on recognising a Venezuelan government, a key step before international aid can flow into the crisis-stricken country, IMF chief Christine Lagarde said Thursday.

World governments are working on recognising a Venezuelan government, a key step before international aid can flow into the crisis-stricken country, IMF chief Christine Lagarde said Thursday. The South American oil-producer is facing an economic and humanitarian crisis that resembles the collapse of a country at war. But without a recognised government, after Venezuela's national assembly leader Juan Guaido in late January challenged the legitimacy of embattled leader Nicolas Maduro, the IMF, World Bank and other institutions cannot help with financing. "We are really very, very concerned about the humanitarian crisis that is unfolding in front of our eyes in Venezuela," Lagarde said. "We are waiting to be guided by our membership and I know that it is in process at the moment as we speak from quite a few members. As soon as that happens we will follow through." The IMF has had no direct access to events on the ground as the global crisis-lender had not been welcome in Venezuela for about 15 years, she said. However, "We have done as much preparatory work as we could... in order to be prepared to act as quickly and as swiftly as we can," Lagarde said. The IMF estimates that Venezuela’s economy will contract by one-fourth in 2019, and a further 10 per cent in 2020 -- a greater collapse than projected in the October 2018, along with unprecedented hyperinflation of 10 million per cent. She stressed that the international response to the Venezuela crisis -- which is facing shortages of food and medicine, power outages, and an exodus of its citizens -- would have to be a "multi-pronged effort" by many institutions. Her comments echoed those of newly-installed World Bank President David Malpass, who also told reporters that the institution's shareholders would decide when and how to engage with Caracas. Malpass also said Venezuela was of "deep concern" and was facing a "humanitarian crisis." "As far as the political side, we will be guided by the international community and the views of our shareholders," he added. "This is something that is not chosen by the bank but by the shareholders of the bank." The IMF said Wednesday it would have no contact with Caracas, and would not allow the country access to its IMF-held reserves, until the international community recognised a government in Caracas. The United States is among about four dozen countries to recognise Guaido, and Vice President Mike Pence on Wednesday called on the UN to do so as well. The Organisation of American States' permanent council and the Inter-American Development Bank have recognised Guaido's representative.

IMF awaits decision on Venezuela government recognition

India is projected to grow at 7.3 per cent in 2019 and 7.5 per cent in 2020, supported by the continued recovery of investment and robust consumption, thus remaining the fastest growing major economy of the world, according to the IMF.

In 2018, India's growth rate was 7.1 per cent, as against China's 6.6 per cent. In 2019, the International Monetary Fund (IMF) projected a growth rate of 6.3 per cent for China and 6.1 per cent in 2020, according to the latest World Economic Outlook projections released ahead of the annual spring meetings of the International Monetary Fund and the World Bank.

"In India, growth is projected to pick up to 7.3 per cent in 2019 and 7.5 per cent in 2020, supported by the continued recovery of investment and robust consumption amid a more expansionary stance of monetary policy and some expected impetus from fiscal policy, the report said.

"Nevertheless, reflecting the recent revision to the national account statistics that indicated somewhat softer underlying momentum, growth forecast has been revised downward compared with the October 2018 WEO by 0.1 percentage point for 2019 and 0.2 percentage point for 2020, respectively," it said.

Growth in India, the report said, is expected to stabilise at just under 7 per cent over the medium term, based on the continued implementation of structural reforms and easing of infrastructure bottlenecks.

The World Economic Outlook believes that in India, continued implementation of structural and financial sector reforms with efforts to reduce public debt remain essential to secure the economy's growth prospects.

"In the near term, continued fiscal consolidation is needed to bring down India's elevated public debt. This should be supported by strengthening goods and services tax compliance and further reducing subsidies, it said.

Important steps have been taken to strengthen financial sector balance sheets, including through accelerated resolution of non-performing assets under a simplified bankruptcy framework, it noted.

"These efforts should be reinforced by enhancing governance of public sector banks. Reforms to hiring and dismissal regulations would help incentivise job creation and absorb the country's large demographic dividend; efforts should also be enhanced on land reform to facilitate and expedite infrastructure development, the report said.

On the other hand, economic growth in China, despite fiscal stimulus and no further increase in tariffs from the US relative to those in force as of September 2018, is projected to slow on an annualised basis in 2019 and 2020.

This reflects weaker underlying growth in 2018, especially in the second half, and the impact of lingering trade tensions with the United States, the IMF said.

India is projected to grow at 7.3 per cent in 2019 and 7.5 per cent in 2020, supported by the continued recovery of investment and robust consumption, thus remaining the fastest growing major economy of the world, according to the IMF.

India is projected to grow at 7.3 per cent in 2019 and 7.5 per cent in 2020, supported by the continued recovery of investment and robust consumption, thus remaining the fastest growing major economy of the world, according to the IMF. In 2018, India's growth rate was 7.1 per cent, as against China's 6.6 per cent. In 2019, the International Monetary Fund (IMF) projected a growth rate of 6.3 per cent for China and 6.1 per cent in 2020, according to the latest World Economic Outlook projections released ahead of the annual spring meetings of the International Monetary Fund and the World Bank. "In India, growth is projected to pick up to 7.3 per cent in 2019 and 7.5 per cent in 2020, supported by the continued recovery of investment and robust consumption amid a more expansionary stance of monetary policy and some expected impetus from fiscal policy, the report said. "Nevertheless, reflecting the recent revision to the national account statistics that indicated somewhat softer underlying momentum, growth forecast has been revised downward compared with the October 2018 WEO by 0.1 percentage point for 2019 and 0.2 percentage point for 2020, respectively," it said. Growth in India, the report said, is expected to stabilise at just under 7 per cent over the medium term, based on the continued implementation of structural reforms and easing of infrastructure bottlenecks. The World Economic Outlook believes that in India, continued implementation of structural and financial sector reforms with efforts to reduce public debt remain essential to secure the economy's growth prospects. "In the near term, continued fiscal consolidation is needed to bring down India's elevated public debt. This should be supported by strengthening goods and services tax compliance and further reducing subsidies, it said. Important steps have been taken to strengthen financial sector balance sheets, including through accelerated resolution of non-performing assets under a simplified bankruptcy framework, it noted. "These efforts should be reinforced by enhancing governance of public sector banks. Reforms to hiring and dismissal regulations would help incentivise job creation and absorb the country's large demographic dividend; efforts should also be enhanced on land reform to facilitate and expedite infrastructure development, the report said. On the other hand, economic growth in China, despite fiscal stimulus and no further increase in tariffs from the US relative to those in force as of September 2018, is projected to slow on an annualised basis in 2019 and 2020. This reflects weaker underlying growth in 2018, especially in the second half, and the impact of lingering trade tensions with the United States, the IMF said.

IMF cuts India GDP growth forecast to 7.3% for 2019-20

Egypt will remove subsidies on most energy products by June 15, it told the International Monetary Fund in a January letter released by the IMF on Saturday as part of a review of Cairo's three-year, $12 billion loan programme with the lender.

This will mean increasing the price to consumers of gasoline, diesel, kerosene and fuel oil, which are now at 85-90 per cent of their international cost, said the letter, which is dated January&nbsp;27th.

The letter from Egypt's finance minister and central bank governor was included in an IMF staff report dated January&nbsp;28th and published following the disbursement in February of the fifth out of six tranches of the loan.

The loan programme began in 2016 and is tied to reforms that have included a sharp devaluation of the Egyptian pound and the introduction of a value-added tax. They have helped steady Egypt's economy but also put millions of Egyptians under increased economic strain.

Fuel prices have increased steadily over the past three years. LPG and fuel oil used for electricity generation and bakeries are not included in the commitment to reaching full cost recovery through subsidy cuts, the letter said.

The government said in its letter that after starting to link less-used Octane 95 petrol to international prices - which it accomplished in April - it would introduce similar indexation mechanisms for other products in June, with the first price adjustments expected in mid-September.

The government noted it had also put in place a hedging mechanism to protect against shocks in oil and other commodities. In its review, however, the IMF "advised caution in using financial instruments with upfront costs that protect only temporarily against extreme price movements", referring to hedging.

Since starting the IMF loan programme, Egypt has borrowed heavily from abroad.

In its letter, the government said it intended to reduce its general debt from a projected 86 per cent of Gross Domestic Product (GDP) by the end of June to 72 per cent by June 2023. Debt was equal to 93 per cent of GDP in June 2018.

It also committed to fully eliminating arrears held by the state-owned Egyptian General Petroleum Company (EGPC) by the end of June this year. The arrears stood at $1.043 billion at the end of 2018.

Egypt said it had capped the government's ability to borrow from the central bank via an overdraft account at $3.82 billion&nbsp;in 2018/19, equal to 10 per cent of the previous three years' revenue, as a way of managing liquidity and reducing inflation.

The central bank would gradually phase out subsidised lending to small- and medium-sized enterprises and social housing programmes and instead these programmes would be financed directly from the state budget, the letter said.

The sale of stakes in at least 23 state-owned enterprises over between 24 and 30 months starting in April 2018 was expected to raise around 80 billion Egyptian pounds, it added.

The IMF said in its review that Egypt's reform programme was "broadly on track".

"The progress on structural reforms has been mixed, but the programme objectives remain achievable," it said.

"Sustained efforts are needed to advance critical reforms in competition, industrial land allocation, transparency and governance of state-owned enterprises, and public procurement."

A recent tightening of global financial conditions had worsened the balance of risks, with Egypt vulnerable to any unexpected increase in oil prices, the IMF said.

"Calls on state-guaranteed loans, which have been increasingly used to finance large infrastructure projects by public entities, or other contingent liabilities could also put pressure on public debt," the report said.

The IMF did not explain the delay in publishing the review.

Egypt will remove subsidies on most energy products by June 15, it told the International Monetary Fund in a January letter released by the IMF on Saturday as part of a review of Cairo's three-year, $12 billion loan programme with the lender.

Egypt will remove subsidies on most energy products by June 15, it told the International Monetary Fund in a January letter released by the IMF on Saturday as part of a review of Cairo's three-year, $12 billion loan programme with the lender. This will mean increasing the price to consumers of gasoline, diesel, kerosene and fuel oil, which are now at 85-90 per cent of their international cost, said the letter, which is dated January 27th. The letter from Egypt's finance minister and central bank governor was included in an IMF staff report dated January 28th and published following the disbursement in February of the fifth out of six tranches of the loan. The loan programme began in 2016 and is tied to reforms that have included a sharp devaluation of the Egyptian pound and the introduction of a value-added tax. They have helped steady Egypt's economy but also put millions of Egyptians under increased economic strain. Fuel prices have increased steadily over the past three years. LPG and fuel oil used for electricity generation and bakeries are not included in the commitment to reaching full cost recovery through subsidy cuts, the letter said. The government said in its letter that after starting to link less-used Octane 95 petrol to international prices - which it accomplished in April - it would introduce similar indexation mechanisms for other products in June, with the first price adjustments expected in mid-September. The government noted it had also put in place a hedging mechanism to protect against shocks in oil and other commodities. In its review, however, the IMF "advised caution in using financial instruments with upfront costs that protect only temporarily against extreme price movements", referring to hedging. Since starting the IMF loan programme, Egypt has borrowed heavily from abroad. In its letter, the government said it intended to reduce its general debt from a projected 86 per cent of Gross Domestic Product (GDP) by the end of June to 72 per cent by June 2023. Debt was equal to 93 per cent of GDP in June 2018. It also committed to fully eliminating arrears held by the state-owned Egyptian General Petroleum Company (EGPC) by the end of June this year. The arrears stood at $1.043 billion at the end of 2018. Egypt said it had capped the government's ability to borrow from the central bank via an overdraft account at $3.82 billion in 2018/19, equal to 10 per cent of the previous three years' revenue, as a way of managing liquidity and reducing inflation. The central bank would gradually phase out subsidised lending to small- and medium-sized enterprises and social housing programmes and instead these programmes would be financed directly from the state budget, the letter said. The sale of stakes in at least 23 state-owned enterprises over between 24 and 30 months starting in April 2018 was expected to raise around 80 billion Egyptian pounds, it added. The IMF said in its review that Egypt's reform programme was "broadly on track". "The progress on structural reforms has been mixed, but the programme objectives remain achievable," it said. "Sustained efforts are needed to advance critical reforms in competition, industrial land allocation, transparency and governance of state-owned enterprises, and public procurement." A recent tightening of global financial conditions had worsened the balance of risks, with Egypt vulnerable to any unexpected increase in oil prices, the IMF said. "Calls on state-guaranteed loans, which have been increasingly used to finance large infrastructure projects by public entities, or other contingent liabilities could also put pressure on public debt," the report said. The IMF did not explain the delay in publishing the review.

Egypt to slash fuel subsidies as IMF programme set to end

Pakistan, facing acute financial woes, will soon reach an agreement with the <a href="https://www.wionews.com/south-asia/imf-likely-to-give-6-billion-us-dollar-bailout-package-to-pakistan-197059">IMF on a bailout plan</a> after the global lender revised its stand, Finance Minister Asad Umar on Monday.

Cash-strapped Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

While speaking to journalists here, Umar said Pakistan had not changed its stance in talks with the IMF. He added that the IMF had revised their stance and "the gap" between the IMF and Pakistan had decreased.

Pakistan will reach an agreement soon with the IMF, Dawn newspaper quoted Umar as saying.

He said the new IMF mission chief is to arrive in Pakistan on Tuesday for an introductory visit.

Earlier, media reports said the IMF has proposed tough conditions for a bailout package.

With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year.

While China has pumped-in $4.1 billion, Pakistan has got $3 billion from Saudi Arabia and $2 billion from United Arab Emirates (UAE).

On March 16, Umar had hinted that bailout package talks with the IMF are in their final stages and the government will have further negotiations with the newly appointed IMF mission chief before reaching an agreement.

"Pakistan has come closer to reaching an agreement with the IMF as the differences between Pakistan and the IMF over a possible bailout package have decreased," he had said.

The finance minister had said that a deal would materialise only after a detailed discussion with the IMF mission chief.&nbsp;

He said that no final amount for the bailout package had been decided so far, as negotiations were still underway.

Pakistan, facing acute financial woes, will soon reach an agreement with the IMF on a bailout plan after the global lender revised its stand, Finance Minister Asad Umar on Monday.

Pakistan, facing acute financial woes, will soon reach an agreement with the IMF on a bailout plan after the global lender revised its stand, Finance Minister Asad Umar on Monday. Cash-strapped Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. While speaking to journalists here, Umar said Pakistan had not changed its stance in talks with the IMF. He added that the IMF had revised their stance and "the gap" between the IMF and Pakistan had decreased. Pakistan will reach an agreement soon with the IMF, Dawn newspaper quoted Umar as saying. He said the new IMF mission chief is to arrive in Pakistan on Tuesday for an introductory visit. Earlier, media reports said the IMF has proposed tough conditions for a bailout package. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year. While China has pumped-in $4.1 billion, Pakistan has got $3 billion from Saudi Arabia and $2 billion from United Arab Emirates (UAE). On March 16, Umar had hinted that bailout package talks with the IMF are in their final stages and the government will have further negotiations with the newly appointed IMF mission chief before reaching an agreement. "Pakistan has come closer to reaching an agreement with the IMF as the differences between Pakistan and the IMF over a possible bailout package have decreased," he had said. The finance minister had said that a deal would materialise only after a detailed discussion with the IMF mission chief. He said that no final amount for the bailout package had been decided so far, as negotiations were still underway.

Pakistan, IMF to reach agreement soon on bailout package: Finance Minister

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