The International Monetary Fund (IMF) on Friday said it has reached an agreement with Sri Lanka to extend a $1.5 billion loan facility for an extra year, a move some analysts say could allow the government to boost spending ahead of key elections.

The global lender also concluded its fifth review to ensure the terms of its lending facility are being met, allowing it to disburse the sixth tranche of the loan.&nbsp;

Reuters had earlier exclusively reported the IMF agreement on extending the loan programme and sixth tranche.

The loan programme, known as the Extended Fund Facility (EFF), now stretches to four years, from the originally agreed three in mid-2016.

Manuela Goretti, the head of visiting IMF staff team, in a statement, said the team welcomes the authorities’ efforts to bring their economic reform program back on track following the political turmoil of late 2018.&nbsp;

"The team reached understandings.... on the fifth review and their request to extend the EFF arrangement for an additional year with the remaining disbursements being evenly spread over this period to allow more time for the completion of the economic reform agenda," Goretti said in a statement.

The IMF has already disbursed over $1 billion of the $1.5 billion loans.&nbsp;

The global lender also said the island nation`s economic growth is expected to improve to about 3.5 per cent this year, speeding from 3 per cent last year and urged the central bank to be ready to tighten monetary policy if inflationary pressures re-emerge.

The loan is crucial for Sri Lanka, which plans to sell up to $3 billion of bonds as early as next week and needs the IMF programme to continue to ensure more attractive borrowing terms.

"This is very positive when the government goes for the sovereign bond," said Dimantha Mathew, head of research at broker First Capital Holdings.

"Extended time for targets considering election year also gives space for the government to face the elections. With this, investors would be very comfortable coming to Sri Lanka. Markets will also take this as a positive sign."

Sri Lanka is set to hold presidential elections later this year, followed by parliamentary polls in 2020.

The IMF in November said it had delayed the programme until it had more clarity on the political situation after President Maithripala Sirisena abruptly sacked his prime minister Ranil Wickremesinghe in a move that was later ruled unconstitutional. Wickremesinghe was later reinstated.

Sri Lanka is struggling to repay its foreign loans, with a record $5.9 billion due this year, including $2.6 billion in the first three months. It used its reserves to repay a $1 billion sovereign bond loan in January.

It was designed to avert a financial crisis and support the economic reform agenda of the Sirisena-led coalition government of the Sri Lanka Freedom Party (SLFP) and Wickremesinghe`s centre-right United National Party (UNP).&nbsp;

The International Monetary Fund (IMF) on Friday said it has reached an agreement with Sri Lanka to extend a $1.5 billion loan facility for an extra year, a move some analysts say could allow the government to boost spending ahead of key elections.

The International Monetary Fund (IMF) on Friday said it has reached an agreement with Sri Lanka to extend a $1.5 billion loan facility for an extra year, a move some analysts say could allow the government to boost spending ahead of key elections. The global lender also concluded its fifth review to ensure the terms of its lending facility are being met, allowing it to disburse the sixth tranche of the loan. Reuters had earlier exclusively reported the IMF agreement on extending the loan programme and sixth tranche. The loan programme, known as the Extended Fund Facility (EFF), now stretches to four years, from the originally agreed three in mid-2016. Manuela Goretti, the head of visiting IMF staff team, in a statement, said the team welcomes the authorities’ efforts to bring their economic reform program back on track following the political turmoil of late 2018. "The team reached understandings.... on the fifth review and their request to extend the EFF arrangement for an additional year with the remaining disbursements being evenly spread over this period to allow more time for the completion of the economic reform agenda," Goretti said in a statement. The IMF has already disbursed over $1 billion of the $1.5 billion loans. The global lender also said the island nation`s economic growth is expected to improve to about 3.5 per cent this year, speeding from 3 per cent last year and urged the central bank to be ready to tighten monetary policy if inflationary pressures re-emerge. The loan is crucial for Sri Lanka, which plans to sell up to $3 billion of bonds as early as next week and needs the IMF programme to continue to ensure more attractive borrowing terms. "This is very positive when the government goes for the sovereign bond," said Dimantha Mathew, head of research at broker First Capital Holdings. "Extended time for targets considering election year also gives space for the government to face the elections. With this, investors would be very comfortable coming to Sri Lanka. Markets will also take this as a positive sign." Sri Lanka is set to hold presidential elections later this year, followed by parliamentary polls in 2020. The IMF in November said it had delayed the programme until it had more clarity on the political situation after President Maithripala Sirisena abruptly sacked his prime minister Ranil Wickremesinghe in a move that was later ruled unconstitutional. Wickremesinghe was later reinstated. Sri Lanka is struggling to repay its foreign loans, with a record $5.9 billion due this year, including $2.6 billion in the first three months. It used its reserves to repay a $1 billion sovereign bond loan in January. It was designed to avert a financial crisis and support the economic reform agenda of the Sirisena-led coalition government of the Sri Lanka Freedom Party (SLFP) and Wickremesinghe`s centre-right United National Party (UNP).

IMF agrees to extend Sri Lanka's $1.5 billion loan facility by one year

Pakistan will likely turn to Islamic banks to borrow another 200 billion rupees ($1.45 billion) to try to ease a financial crunch in its power sector, a senior finance ministry official said on Friday.

The new government of Prime Minister Imran Khan is trying to clear power sector government payment arrears amid warnings by power producers that they could go out of business if they are not paid.

The arrears, known as "circular debt", stand at more than 1.4 trillion rupees ($10.1 billion).

Pakistan took out a 200 billion rupees sukuk last month and another one is planned in coming months, officials say. Local media reported six Islamic banks were involved in the first issuance, with Pakistan's Meezan Bank leading the syndicate.

"Yes, the government may consider borrowing in addition to the 200 billion rupees in process and is likely to follow the sukuk route further... as there is ample liquidity in the Islamic banking area," Khaqan Hassan Najeeb, advisor and spokesperson to the finance ministry.

Electricity woes have been weighing on Pakistan's economic outlook and plans for clearing circular debt are a key part of its ongoing bailout negotiations with the International Monetary Fund.

Najeeb added that the government wants to reduce circular debt flow, or build up, to negligible levels in next financial year ending June 2020.

Pakistan, which has had 12 bailouts since late 1980s, is trying to avert a balance of payment crisis amid dwindling foreign currency reserves and a yawning current account deficit.

On top of an IMF bailout, Islamabad is sourcing loans from friendly nations, mostly in the Middle East, and trying attract foreign investment, including through the privatisation of some state assets.

The government has also launched a bond for Pakistani diaspora and is due to an issue a yuan-denominated "panda bond", for which it has issued a request for proposal (RFP).

But negotiations have been slow and delayed, with several Pakistani officials voicing concerns that conditions being put forward as part of an IMF programme would cripple economic growth.

Najeeb did not put a date on how long it would take before any final deal is struck, but added,&nbsp;"We continue to productively engage with IMF on regular basis through video conferencing, emails and sharing of data."

Najeeb said the government and Finance Minister Asad Umar are determined for the next bailout to be the last IMF rescue package for Pakistan.

Pakistan will likely turn to Islamic banks to borrow another 200 billion rupees ($1.45 billion) to try to ease a financial crunch in its power sector, a senior finance ministry official said on Friday.

Pakistan will likely turn to Islamic banks to borrow another 200 billion rupees ($1.45 billion) to try to ease a financial crunch in its power sector, a senior finance ministry official said on Friday. The new government of Prime Minister Imran Khan is trying to clear power sector government payment arrears amid warnings by power producers that they could go out of business if they are not paid. The arrears, known as "circular debt", stand at more than 1.4 trillion rupees ($10.1 billion). Pakistan took out a 200 billion rupees sukuk last month and another one is planned in coming months, officials say. Local media reported six Islamic banks were involved in the first issuance, with Pakistan's Meezan Bank leading the syndicate. "Yes, the government may consider borrowing in addition to the 200 billion rupees in process and is likely to follow the sukuk route further... as there is ample liquidity in the Islamic banking area," Khaqan Hassan Najeeb, advisor and spokesperson to the finance ministry. Electricity woes have been weighing on Pakistan's economic outlook and plans for clearing circular debt are a key part of its ongoing bailout negotiations with the International Monetary Fund. Najeeb added that the government wants to reduce circular debt flow, or build up, to negligible levels in next financial year ending June 2020. Pakistan, which has had 12 bailouts since late 1980s, is trying to avert a balance of payment crisis amid dwindling foreign currency reserves and a yawning current account deficit. On top of an IMF bailout, Islamabad is sourcing loans from friendly nations, mostly in the Middle East, and trying attract foreign investment, including through the privatisation of some state assets. The government has also launched a bond for Pakistani diaspora and is due to an issue a yuan-denominated "panda bond", for which it has issued a request for proposal (RFP). But negotiations have been slow and delayed, with several Pakistani officials voicing concerns that conditions being put forward as part of an IMF programme would cripple economic growth. Najeeb did not put a date on how long it would take before any final deal is struck, but added, "We continue to productively engage with IMF on regular basis through video conferencing, emails and sharing of data." Najeeb said the government and Finance Minister Asad Umar are determined for the next bailout to be the last IMF rescue package for Pakistan.

Pakistan may turn to Islamic banks for second $1.4 billion loan: Official

Pakistan is likely to secure an International Monetary Fund (IMF) bailout soon to stave off a balance of payment crisis and help shore up its economy, Finance Minister Asad Umar said on Monday, as talks between Islamabad and the fund continue.

A day earlier, Prime Minister Imran Khan met IMF chief Christine Lagarde in Dubai to discuss a bailout, and the country's foreign currency reserves have dwindled to around $8 billion, just enough to cover about two months of imports

That meeting ended with a pledge to continue talks, and while there had not been any indication of a breakthrough, Umar said an agreement was coming into view.

"Our differences have narrowed," he told business groups in the northwestern city of Peshawar. "It seems we have come very close to having an agreement with the IMF."

Talks with the IMF began soon after Khan's government was appointed last August but a package has been held up by differences over the pace and scale of reforms that Pakistan would be required to undertake.

The IMF has pressed Pakistan to improve tax revenue collection, bolster foreign currency reserves and narrow a current account deficit expected to top 5 per cent of gross domestic product this year.

Pakistani officials say they agree on the need for reforms but do not want to sign up to conditions that would derail the economy, with growth set to slow this year to around 4 per cent from 5.2 per cent last year.

Khan has long resisted foreign loans, once declaring he would rather commit suicide than seek an IMF loan. However, Pakistan's fast depleting foreign reserves and a widening current account deficit left him little choice than to seek international assistance.

While no IMF package has been agreed, Pakistan has raised more than $10 billion in loans and credit arrangements from Middle Eastern allies such as Saudi Arabia and the United Arab Emirates as well as support from China, its partner in the vast China Pakistan Economic Corridor project.

The economic turbulence facing Pakistan was underlined on Monday when Moody's Investors' Service cut its outlook on Pakistan's banking sector to negative, citing the banks' large holdings of government bonds "that link their credit profiles to the low-rated government."

It noted that the Pakistani rupee had depreciated by 30 per cent against the US&nbsp;dollar, interest rates had risen by 450 basis points between Dec. 2017 and Feb. 2019, and inflation was rising; "all factors which affect business and consumer confidence and the private sector's debt repayment capacities."

Earlier this month, Pakistan's credit rating was downgraded by Standard and Poor's, which cited diminished growth prospects and elevated external and fiscal stresses.

Pakistan is likely to secure an International Monetary Fund (IMF) bailout soon to stave off a balance of payment crisis and help shore up its economy, Finance Minister Asad Umar said on Monday, as talks between Islamabad and the fund continue.

Pakistan is likely to secure an International Monetary Fund (IMF) bailout soon to stave off a balance of payment crisis and help shore up its economy, Finance Minister Asad Umar said on Monday, as talks between Islamabad and the fund continue. A day earlier, Prime Minister Imran Khan met IMF chief Christine Lagarde in Dubai to discuss a bailout, and the country's foreign currency reserves have dwindled to around $8 billion, just enough to cover about two months of imports That meeting ended with a pledge to continue talks, and while there had not been any indication of a breakthrough, Umar said an agreement was coming into view. "Our differences have narrowed," he told business groups in the northwestern city of Peshawar. "It seems we have come very close to having an agreement with the IMF." Talks with the IMF began soon after Khan's government was appointed last August but a package has been held up by differences over the pace and scale of reforms that Pakistan would be required to undertake. The IMF has pressed Pakistan to improve tax revenue collection, bolster foreign currency reserves and narrow a current account deficit expected to top 5 per cent of gross domestic product this year. Pakistani officials say they agree on the need for reforms but do not want to sign up to conditions that would derail the economy, with growth set to slow this year to around 4 per cent from 5.2 per cent last year. Khan has long resisted foreign loans, once declaring he would rather commit suicide than seek an IMF loan. However, Pakistan's fast depleting foreign reserves and a widening current account deficit left him little choice than to seek international assistance. While no IMF package has been agreed, Pakistan has raised more than $10 billion in loans and credit arrangements from Middle Eastern allies such as Saudi Arabia and the United Arab Emirates as well as support from China, its partner in the vast China Pakistan Economic Corridor project. The economic turbulence facing Pakistan was underlined on Monday when Moody's Investors' Service cut its outlook on Pakistan's banking sector to negative, citing the banks' large holdings of government bonds "that link their credit profiles to the low-rated government." It noted that the Pakistani rupee had depreciated by 30 per cent against the US dollar, interest rates had risen by 450 basis points between Dec. 2017 and Feb. 2019, and inflation was rising; "all factors which affect business and consumer confidence and the private sector's debt repayment capacities." Earlier this month, Pakistan's credit rating was downgraded by Standard and Poor's, which cited diminished growth prospects and elevated external and fiscal stresses.

Pakistan 'very close' to securing IMF bailout: Finance Minister

A record investment package being prepared by Saudi Arabia for Pakistan will likely provide welcome relief for its cash-strapped Muslim ally, while also addressing regional geopolitical challenges, analysts say.

At the heart of the investment is a reported $10 billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor, which lies not far from the Indo-Iranian port of Chabahar.

Two Saudi sources have confirmed to AFP that heir apparent to the Gulf kingdom's throne, Crown Prince Mohammed bin Salman, will visit Islamabad shortly, without giving a date.

And a number of major investment deals are expected to be signed during a visit, officials from both countries have told AFP.

Riyadh and Islamabad, decades-old allies, have been involved for months in talks to hammer out details of the deals in time for the high-profile visit.

"The outcome of the talks so far has been very positive and this is going to be one of the biggest-ever Saudi investments in Pakistan," a Pakistani senior finance ministry official told AFP.

"We hope that an agreement to this effect will be signed during the upcoming visit of the Saudi crown prince to Pakistan," said the official, requesting anonymity.

The Wall Street Journal reported last month that both Saudi Arabia and the United Arab Emirates, Islamabad's biggest trading partner in the Middle East, have offered Pakistani Prime Minister Imran Khan some $30 billion in investment and loans.

Saudi lifeline

Riyadh investments are expected to provide a lifeline for Pakistan's slumping economy which was downgraded in early February by S&amp;P ratings agency from a B to a B-, Saudi economist Fadhl al-Bouenain said.

"Saudi investment to Pakistan comes within an economic aid package aimed at relieving the stress of external debt and a shortage of foreign currency, besides boosting the sluggish economy," Bouenain told AFP.

The OPEC heavyweight also aims to achieve strategic and commercial goals with investments in infrastructure and refinery projects, he said.

Saudi Arabia and its Gulf partner, the UAE, have already deposited $3 billion each in Pakistan's central bank to help resolve a balance of payments crisis and shore up its declining rupee.

They have also reportedly deferred some $6 billion in oil imports payments as Islamabad has so far failed to secure fresh loans from the International Monetary Fund.

Khan has already visited Riyadh twice since taking office in July and in October attended a prestigious investment conference widely boycotted by other political and economic figures after the murder of journalist Jamal Khashoggi.

Khan also visited Saudi rivals Qatar and Turkey, as well as China seeking investments.

"One of the goals for Saudi Arabia expanding investments in refining worldwide is to secure market share and sustainable exports in the face of international competition," Bouenain said.

Saudi Energy Minister Khalid al-Falih visited Gwadar in January and inspected the site for the proposed oil refinery at the deep sea port, just 70 kilometres (45 miles) away from its Iranian competitor, Chabahar.

He was quoted by local media as saying the kingdom was studying plans to construct a $10 billion refinery and petrochemicals complex in Gwadar.

Cutting supply times

Like most oil suppliers, the world's top crude exporter has been investing heavily in refinery and petrochemicals projects across the globe to secure long-term buyers of its oil.

A pipeline from Gwadar to China would cut the supply time from the current 40 days to just seven, experts say.

Developed as part of China's Belt and Road Initiative with investments worth some $60 billion, Gwadar is being billed as a regional industrial hub of the future, easily accessible for Central Asia, Afghanistan, the Middle East and Africa.

"Pakistan needs a rich partner to enter as a third party besides China, capable of injecting needed cash," Bouenain said.

But so far China has rejected other partners for the corridor that seeks to connect its western province Xinjiang with Gwadar, including Saudi Arabia and UAE, said James M. Dorsey, a senior fellow at Singapore's S. Rajaratnam School of International Studies.

This is despite calls by Khan "for the Chinese investments to be restructured to include agriculture and job-creation sectors and not only in infrastructure", Dorsey told AFP.

Any Saudi investment in Gwadar will also have geopolitical dimensions, Dorsey said.

Iran late last year inaugurated Chabahar which provides a key supply route to landlocked Afghanistan and allows India to bypass its historic enemy Pakistan.

India has seen Chabahar as a key way both to send supplies to Afghanistan and to step up trade with Central Asia as well as Africa.

But Riyadh is not expected to get involved in any Indo-Pakistani rivalry and the kingdom also has major strategic energy deals with New Delhi, where demand for oil is growing fast.

Indeed in April, the Saudis signed a $44 billion deal to build a huge refinery and petrochemicals complex in western India.

A record investment package being prepared by Saudi Arabia for Pakistan will likely provide welcome relief for its cash-strapped Muslim ally, while also addressing regional geopolitical challenges, analysts say.

A record investment package being prepared by Saudi Arabia for Pakistan will likely provide welcome relief for its cash-strapped Muslim ally, while also addressing regional geopolitical challenges, analysts say. At the heart of the investment is a reported $10 billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor, which lies not far from the Indo-Iranian port of Chabahar. Two Saudi sources have confirmed to AFP that heir apparent to the Gulf kingdom's throne, Crown Prince Mohammed bin Salman, will visit Islamabad shortly, without giving a date. And a number of major investment deals are expected to be signed during a visit, officials from both countries have told AFP. Riyadh and Islamabad, decades-old allies, have been involved for months in talks to hammer out details of the deals in time for the high-profile visit. "The outcome of the talks so far has been very positive and this is going to be one of the biggest-ever Saudi investments in Pakistan," a Pakistani senior finance ministry official told AFP. "We hope that an agreement to this effect will be signed during the upcoming visit of the Saudi crown prince to Pakistan," said the official, requesting anonymity. The Wall Street Journal reported last month that both Saudi Arabia and the United Arab Emirates, Islamabad's biggest trading partner in the Middle East, have offered Pakistani Prime Minister Imran Khan some $30 billion in investment and loans. Saudi lifeline Riyadh investments are expected to provide a lifeline for Pakistan's slumping economy which was downgraded in early February by S&P ratings agency from a B to a B-, Saudi economist Fadhl al-Bouenain said. "Saudi investment to Pakistan comes within an economic aid package aimed at relieving the stress of external debt and a shortage of foreign currency, besides boosting the sluggish economy," Bouenain told AFP. The OPEC heavyweight also aims to achieve strategic and commercial goals with investments in infrastructure and refinery projects, he said. Saudi Arabia and its Gulf partner, the UAE, have already deposited $3 billion each in Pakistan's central bank to help resolve a balance of payments crisis and shore up its declining rupee. They have also reportedly deferred some $6 billion in oil imports payments as Islamabad has so far failed to secure fresh loans from the International Monetary Fund. Khan has already visited Riyadh twice since taking office in July and in October attended a prestigious investment conference widely boycotted by other political and economic figures after the murder of journalist Jamal Khashoggi. Khan also visited Saudi rivals Qatar and Turkey, as well as China seeking investments. "One of the goals for Saudi Arabia expanding investments in refining worldwide is to secure market share and sustainable exports in the face of international competition," Bouenain said. Saudi Energy Minister Khalid al-Falih visited Gwadar in January and inspected the site for the proposed oil refinery at the deep sea port, just 70 kilometres (45 miles) away from its Iranian competitor, Chabahar. He was quoted by local media as saying the kingdom was studying plans to construct a $10 billion refinery and petrochemicals complex in Gwadar. Cutting supply times Like most oil suppliers, the world's top crude exporter has been investing heavily in refinery and petrochemicals projects across the globe to secure long-term buyers of its oil. A pipeline from Gwadar to China would cut the supply time from the current 40 days to just seven, experts say. Developed as part of China's Belt and Road Initiative with investments worth some $60 billion, Gwadar is being billed as a regional industrial hub of the future, easily accessible for Central Asia, Afghanistan, the Middle East and Africa. "Pakistan needs a rich partner to enter as a third party besides China, capable of injecting needed cash," Bouenain said. But so far China has rejected other partners for the corridor that seeks to connect its western province Xinjiang with Gwadar, including Saudi Arabia and UAE, said James M. Dorsey, a senior fellow at Singapore's S. Rajaratnam School of International Studies. This is despite calls by Khan "for the Chinese investments to be restructured to include agriculture and job-creation sectors and not only in infrastructure", Dorsey told AFP. Any Saudi investment in Gwadar will also have geopolitical dimensions, Dorsey said. Iran late last year inaugurated Chabahar which provides a key supply route to landlocked Afghanistan and allows India to bypass its historic enemy Pakistan. India has seen Chabahar as a key way both to send supplies to Afghanistan and to step up trade with Central Asia as well as Africa. But Riyadh is not expected to get involved in any Indo-Pakistani rivalry and the kingdom also has major strategic energy deals with New Delhi, where demand for oil is growing fast. Indeed in April, the Saudis signed a $44 billion deal to build a huge refinery and petrochemicals complex in western India.

Saudi Arabia planning record investments to aid cash-strapped Pakistan

Pakistani Prime Minister Imran Khan will meet International Monetary Fund (IMF) chief Christine Lagarde in Dubai on Sunday for talks on issues which have held up bailout negotiations, a Pakistani minister said on Saturday.

Pakistan is seeking its 13th bailout since the late 1980s to deal with a current account deficit that threatens to trigger a balance of payments crisis, but talks have been delayed by difficulties in reconciling IMF reform demands with Islamabad`s fears the push is too drastic and could hurt economic growth.

Information Minister Fawad Chaudhry told Reuters Khan will meet IMF Managing Director Christine Lagarde on the sidelines of the World Government Summit in Dubai.

"This will give us a chance to understand the IMF views and we will be able to give our version to (Lagarde)," said Chaudhry, who will accompany Khan to Dubai along with Finance Minister Asad Umar.

Chaudhry said Pakistan wants any agreed bailout package, which would be the country's second IMF bailout since 2013, to be the nation`s last such economic rescue by the IMF.&nbsp;

Officials had expected talks to conclude in November but they have been delayed as Islamabad harbours concerns that the programme could derail the economy and Khan`s plans for his term in office.

Pakistan has in the meantime sought financial assistance from Middle Eastern allies such as Saudi Arabia and the United Arab Emirates, who have loaned it in excess of $10 billion to ease the pressure on its dwindling foreign currency reserves.

"The problem is not the (IMF) deal, the problem is the condition attached to the deal," Chaudhry said.&nbsp;

"We don’t want conditions that hurt Pakistan’s growth prospects. We want a fair deal that can actually help Pakistan in the short term, without affecting our long-term economic goals."

The IMF talks come amid a worsening macroeconomic outlook, with growth expectations slashed for the current fiscal year to about 4 per cent from 6 per cent previously forecast.

On Saturday, Pakistan also revised its growth figures for the last financial year to 5.2 per cent from a previously reported 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said.

When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi it was hailed as the strongest growth in 13 years.

Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistani Prime Minister Imran Khan will meet International Monetary Fund (IMF) chief Christine Lagarde in Dubai on Sunday for talks on issues which have held up bailout negotiations, a Pakistani minister said on Saturday.

Pakistani Prime Minister Imran Khan will meet International Monetary Fund (IMF) chief Christine Lagarde in Dubai on Sunday for talks on issues which have held up bailout negotiations, a Pakistani minister said on Saturday. Pakistan is seeking its 13th bailout since the late 1980s to deal with a current account deficit that threatens to trigger a balance of payments crisis, but talks have been delayed by difficulties in reconciling IMF reform demands with Islamabad`s fears the push is too drastic and could hurt economic growth. Information Minister Fawad Chaudhry told Reuters Khan will meet IMF Managing Director Christine Lagarde on the sidelines of the World Government Summit in Dubai. "This will give us a chance to understand the IMF views and we will be able to give our version to (Lagarde)," said Chaudhry, who will accompany Khan to Dubai along with Finance Minister Asad Umar. Chaudhry said Pakistan wants any agreed bailout package, which would be the country's second IMF bailout since 2013, to be the nation`s last such economic rescue by the IMF. Officials had expected talks to conclude in November but they have been delayed as Islamabad harbours concerns that the programme could derail the economy and Khan`s plans for his term in office. Pakistan has in the meantime sought financial assistance from Middle Eastern allies such as Saudi Arabia and the United Arab Emirates, who have loaned it in excess of $10 billion to ease the pressure on its dwindling foreign currency reserves. "The problem is not the (IMF) deal, the problem is the condition attached to the deal," Chaudhry said. "We don’t want conditions that hurt Pakistan’s growth prospects. We want a fair deal that can actually help Pakistan in the short term, without affecting our long-term economic goals." The IMF talks come amid a worsening macroeconomic outlook, with growth expectations slashed for the current fiscal year to about 4 per cent from 6 per cent previously forecast. On Saturday, Pakistan also revised its growth figures for the last financial year to 5.2 per cent from a previously reported 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said. When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi it was hailed as the strongest growth in 13 years. Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistan PM Imran Khan to meet IMF chief Lagarde for talks on bailout

Ahead of the Budget the International Monetary Fund's(IMF)&nbsp;top representative Andreas Bauer in India spoke exclusively to our correspondent Siddhant Sibal.&nbsp; 
Bauer lauded the various reforms in India especially the GST and said that the country has done well and the world needs it to grow. He hoped for fiscal consolidation in the upcoming Budget. Here is the full interview.&nbsp;

WION: The IMF report was upbeat on India. What makes you so confident?&nbsp;

Andreas Bauer: We think India has a strong base to grow on. It has a young population, it has human resources that are growing, it has a fairly high savings rate, although we would see some more of that will provide the basis for investment.

India has a good basis to start growing. We need reforms. This is why we looking in Budgets, programmes of the new government. We want to see continues pace of reforms, some important reforms have been implemented in recent years.&nbsp;

WION: Your assessment of reforms introduced by the government in the last few years?&nbsp;

Andreas Bauer: India has made a lot of progress in a few years and GST for us is a big reform. It has the potential to unify the domestic market, certainty, the initial structure of GST was quite complex and compliance cost very high.

We have seen good moves to simplify that. More scope to go further. But reforms give a tailwind to move the economy forward. Looking at the next phase, after the elections that India can pick up the reform pace and continue to build the economic pace that allows country to grow at these high rates.

India has done well, India is growing above 7 per cent, the country is 15 per cent of global growth and world needs India to grow as there are other economies like China which are slowing, so we do need India to grow.&nbsp;

WION: What kind of reforms you expect?&nbsp;

Andreas Bauer: We have laid reforms out in our annual assessment of the economy. In short term, we are looking at a number of things. We are looking at ways to address twin balance sheet problem.

So improving capital base of banks, which is ongoing for public banks and governance reforms of the banks and making sure these banks in future work on much better basis and we don't see repeat of accumulation of large non-performing loans. One of the issues, we have discussed is the global environment might become challenging. Important to put fiscal on a strong footing.&nbsp;

WION: Your suggestions on the Budget?&nbsp;

Andreas Bauer: I rather wait for the Budget to see what is in there but we have been for sometimes saying that India should gradually consolidate. So certainly we want India to persist on that path.

See the deficits to decline and debt levels to decline. These are relatively high levels for an emerging economy and we want to have a space that when a negative shock comes, fisc can help. We would like to see the continuation of the consolidation path. It is important to take a global view and create fiscal space to be ready in case if negative shock.&nbsp;

WION: Your assessment of oil prices especially with the crisis in Venezuela?

Andreas Bauer: Geopolitical events always pose risk to oil price. The general expectation is after the recent decline oil prices, they will remain at the current level so that is not bad news for oil importers like India.

Risk of supply disruption as we saw last year. So risk as well on that front. In general, given that global economy is slowing and given that previous supply disruptions have been addressed, so our forecast and markets forecast is stable oil prices.&nbsp;

WION: You have painted a gloomy picture of the world economy. What makes you pessimistic?&nbsp;

Andreas Bauer: The good news is the global economy is still expanding but expansion is slowing and at a faster pace than originally then we anticipated. So we put out a word of caution. The global economy last year expanded by 3.7 per cent, that is quite a good pace.

For the current year, growth will slow down to 3.5 per cent and that refects in both advanced and emerging markets. The key message to countries is, the situation is still okay, but risk remains and better prepare for a more difficult external environment.&nbsp;

Ahead of the Budget the International Monetary Fund's(IMF) top representative Andreas Bauer in India spoke exclusively to our correspondent Siddhant Sibal. Bauer lauded the various reforms in India especially the GST and said that the country has done well and the world needs it to grow.

Ahead of the Budget the International Monetary Fund's(IMF) top representative Andreas Bauer in India spoke exclusively to our correspondent Siddhant Sibal. Bauer lauded the various reforms in India especially the GST and said that the country has done well and the world needs it to grow. He hoped for fiscal consolidation in the upcoming Budget. Here is the full interview. WION: The IMF report was upbeat on India. What makes you so confident? Andreas Bauer: We think India has a strong base to grow on. It has a young population, it has human resources that are growing, it has a fairly high savings rate, although we would see some more of that will provide the basis for investment. India has a good basis to start growing. We need reforms. This is why we looking in Budgets, programmes of the new government. We want to see continues pace of reforms, some important reforms have been implemented in recent years. WION: Your assessment of reforms introduced by the government in the last few years? Andreas Bauer: India has made a lot of progress in a few years and GST for us is a big reform. It has the potential to unify the domestic market, certainty, the initial structure of GST was quite complex and compliance cost very high. We have seen good moves to simplify that. More scope to go further. But reforms give a tailwind to move the economy forward. Looking at the next phase, after the elections that India can pick up the reform pace and continue to build the economic pace that allows country to grow at these high rates. India has done well, India is growing above 7 per cent, the country is 15 per cent of global growth and world needs India to grow as there are other economies like China which are slowing, so we do need India to grow. WION: What kind of reforms you expect? Andreas Bauer: We have laid reforms out in our annual assessment of the economy. In short term, we are looking at a number of things. We are looking at ways to address twin balance sheet problem. So improving capital base of banks, which is ongoing for public banks and governance reforms of the banks and making sure these banks in future work on much better basis and we don't see repeat of accumulation of large non-performing loans. One of the issues, we have discussed is the global environment might become challenging. Important to put fiscal on a strong footing. WION: Your suggestions on the Budget? Andreas Bauer: I rather wait for the Budget to see what is in there but we have been for sometimes saying that India should gradually consolidate. So certainly we want India to persist on that path. See the deficits to decline and debt levels to decline. These are relatively high levels for an emerging economy and we want to have a space that when a negative shock comes, fisc can help. We would like to see the continuation of the consolidation path. It is important to take a global view and create fiscal space to be ready in case if negative shock. WION: Your assessment of oil prices especially with the crisis in Venezuela? Andreas Bauer: Geopolitical events always pose risk to oil price. The general expectation is after the recent decline oil prices, they will remain at the current level so that is not bad news for oil importers like India. Risk of supply disruption as we saw last year. So risk as well on that front. In general, given that global economy is slowing and given that previous supply disruptions have been addressed, so our forecast and markets forecast is stable oil prices. WION: You have painted a gloomy picture of the world economy. What makes you pessimistic? Andreas Bauer: The good news is the global economy is still expanding but expansion is slowing and at a faster pace than originally then we anticipated. So we put out a word of caution. The global economy last year expanded by 3.7 per cent, that is quite a good pace. For the current year, growth will slow down to 3.5 per cent and that refects in both advanced and emerging markets. The key message to countries is, the situation is still okay, but risk remains and better prepare for a more difficult external environment.

Ahead of Budget, IMF calls for more reforms

WION Exclusive: In conversation with Gita Gopinath, IMF Chief Economist

The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy.

"We have already seen the negative effect of this uncertainty on British investment," IMF chief economist Gita Gopinath told reporters in Davos ahead of the opening of the World Economic Forum.

"It is imperative for leaders to resolve this uncertainty immediately."

The IMF had already calculated that if Britain crashed out of the EU without a deal the result would be "a decline in long-run ... GDP of five to eight per cent", she said.

"So that would be quite significant. It is absolutely essential that this uncertainty is resolved sooner than later," she said.

Gopinath's comments came after the IMF released an update to its global economic forecast, showing that a range of uncertainties, including Brexit, but also US-China trade confrontations, were threatening to drag down global growth even further.

The World Economic Outlook cut the global GDP forecast for this year to 3.5 per cent from the 3.7 per cent projected in October. And for 2020 the estimate was trimmed to 3.6 per cent.

While it cut forecasts for a number of national economies, it forecast 1.5 per cent 2019 growth for Britain, the same as in October.

But it warned the estimate is fraught with uncertainty since "as of mid-January, the shape that Brexit will ultimately take remains highly uncertain".

London and Brussels have spent the best part of two years working on a divorce deal, but members of Britain's lower House of Commons comprehensively rejected Prime Minister Theresa May's proposed deal last week.

She will unveil a "Plan B" on Monday, but fears are growing that Britain will crash out of the EU on March 29 unless MPs can force a delay or come up with an alternative plan that Brussels is also happy with, before the deadline.

The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy.

The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy. "We have already seen the negative effect of this uncertainty on British investment," IMF chief economist Gita Gopinath told reporters in Davos ahead of the opening of the World Economic Forum. "It is imperative for leaders to resolve this uncertainty immediately." The IMF had already calculated that if Britain crashed out of the EU without a deal the result would be "a decline in long-run ... GDP of five to eight per cent", she said. "So that would be quite significant. It is absolutely essential that this uncertainty is resolved sooner than later," she said. Gopinath's comments came after the IMF released an update to its global economic forecast, showing that a range of uncertainties, including Brexit, but also US-China trade confrontations, were threatening to drag down global growth even further. The World Economic Outlook cut the global GDP forecast for this year to 3.5 per cent from the 3.7 per cent projected in October. And for 2020 the estimate was trimmed to 3.6 per cent. While it cut forecasts for a number of national economies, it forecast 1.5 per cent 2019 growth for Britain, the same as in October. But it warned the estimate is fraught with uncertainty since "as of mid-January, the shape that Brexit will ultimately take remains highly uncertain". London and Brussels have spent the best part of two years working on a divorce deal, but members of Britain's lower House of Commons comprehensively rejected Prime Minister Theresa May's proposed deal last week. She will unveil a "Plan B" on Monday, but fears are growing that Britain will crash out of the EU on March 29 unless MPs can force a delay or come up with an alternative plan that Brussels is also happy with, before the deadline.

Imperative to resolve Brexit uncertainty immediately: IMF

The International Monetary Fund on Monday cut its <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">world economic growth forecasts</a> for 2019 and 2020, due to weakness in Europe and some emerging markets, and said failure to resolve trade tensions could further destabilise a slowing global economy.

In its second downgrade in three months, <a href="http://www.wionews.com/world/america-first-imfs-lagarde-urges-us-others-to-reject-dystopian-path-181545">the global lender also cited</a> a bigger-than-expected slowdown in China's economy and a possible "No Deal" Brexit as risks to its outlook, saying these could worsen market turbulence in financial markets.

The IMF predicted the global economy to grow at 3.5 per cent in 2019 and 3.6 per cent in 2020, down 0.2 and 0.1 percentage point respectively from last October's forecasts.

The new forecasts, released ahead of this week's gathering of world leaders and business executives in the Swiss ski resort of Davos, show that policymakers may need to come up with plans to deal with an end to years of solid global growth.

"Risks to global growth tilt to the downside. An escalation of trade tensions beyond those already incorporated in the forecast remains a key source of risk to the outlook," the IMF said in an update to its World Economic Outlook report.

"Higher trade policy uncertainty and concerns over escalation and retaliation would lower business investment, disrupt supply chains and slow productivity growth. The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth."

The downgrades reflected signs of weakness in Europe, with its export powerhouse Germany hurt by new fuel emission standards for cars and with Italy under market pressure due to Rome's recent budget standoff with the European Union.

Growth in the euro zone is set to moderate from 1.8 per cent in 2018 to 1.6 per cent in 2019, 0.3 percentage point lower than projected three months ago, the IMF said.

The IMF also cut its 2019 growth forecast for developing countries to 4.5 per cent, down 0.2 percentage point from the previous projection and a slowdown from 4.7 percent in 2018.

"Emerging market and developing economies have been tested by difficult external conditions over the past few months amid trade tensions, rising U.S. interest rates, dollar appreciation, capital outflows, and volatile oil prices," the IMF said.

The IMF maintained its U.S. growth projections of 2.5 per cent this year and 1.8 per cent in 2020, pointing to continued strength in domestic demand.

It also kept its China growth forecast at 6.2 per cent in both 2019 and 2020, but said economic activity could miss expectations if trade tensions persist, even with state efforts to spur growth by boosting fiscal spending and bank lending.

"As seen in 2015–16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure," it said.

Britain is expected to achieve 1.5 per cent growth this year though there is uncertainty over the projection, which is based on the assumption of an orderly exit from the EU, the IMF said.

The rare bright spot was Japan, with the IMF revising up its forecast by 0.2 percentage point to 1.1 per cent this year due to an expected boost from the government's spending measures, which aim to offset a scheduled sales-tax hike in October.

The IMF has been urging policymakers to carry out structural reforms while the global economy enjoys solid growth, with its managing director, Christine Lagarde, telling them to "fix the roof while the sun is shining". The IMF has stressed the need to address income inequality and reform the financial sector.

However, as growth momentum peaks and risks to the outlook rise, policymakers must now focus on policies to prevent further slowdowns, the IMF said.

"The main shared policy priority is for countries to resolve cooperatively and quickly their trade disagreements and the resulting policy uncertainty, rather than raising harmful barriers further and destabilizing an already slowing global economy," it added.

The International Monetary Fund on Monday cut its world economic growth forecasts for 2019 and 2020, due to weakness in Europe and some emerging markets, and said failure to resolve trade tensions could further destabilise a slowing global economy.

The International Monetary Fund on Monday cut its world economic growth forecasts for 2019 and 2020, due to weakness in Europe and some emerging markets, and said failure to resolve trade tensions could further destabilise a slowing global economy. In its second downgrade in three months, the global lender also cited a bigger-than-expected slowdown in China's economy and a possible "No Deal" Brexit as risks to its outlook, saying these could worsen market turbulence in financial markets. The IMF predicted the global economy to grow at 3.5 per cent in 2019 and 3.6 per cent in 2020, down 0.2 and 0.1 percentage point respectively from last October's forecasts. The new forecasts, released ahead of this week's gathering of world leaders and business executives in the Swiss ski resort of Davos, show that policymakers may need to come up with plans to deal with an end to years of solid global growth. "Risks to global growth tilt to the downside. An escalation of trade tensions beyond those already incorporated in the forecast remains a key source of risk to the outlook," the IMF said in an update to its World Economic Outlook report. "Higher trade policy uncertainty and concerns over escalation and retaliation would lower business investment, disrupt supply chains and slow productivity growth. The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth." The downgrades reflected signs of weakness in Europe, with its export powerhouse Germany hurt by new fuel emission standards for cars and with Italy under market pressure due to Rome's recent budget standoff with the European Union. Growth in the euro zone is set to moderate from 1.8 per cent in 2018 to 1.6 per cent in 2019, 0.3 percentage point lower than projected three months ago, the IMF said. The IMF also cut its 2019 growth forecast for developing countries to 4.5 per cent, down 0.2 percentage point from the previous projection and a slowdown from 4.7 percent in 2018. "Emerging market and developing economies have been tested by difficult external conditions over the past few months amid trade tensions, rising U.S. interest rates, dollar appreciation, capital outflows, and volatile oil prices," the IMF said. The IMF maintained its U.S. growth projections of 2.5 per cent this year and 1.8 per cent in 2020, pointing to continued strength in domestic demand. It also kept its China growth forecast at 6.2 per cent in both 2019 and 2020, but said economic activity could miss expectations if trade tensions persist, even with state efforts to spur growth by boosting fiscal spending and bank lending. "As seen in 2015–16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure," it said. Britain is expected to achieve 1.5 per cent growth this year though there is uncertainty over the projection, which is based on the assumption of an orderly exit from the EU, the IMF said. The rare bright spot was Japan, with the IMF revising up its forecast by 0.2 percentage point to 1.1 per cent this year due to an expected boost from the government's spending measures, which aim to offset a scheduled sales-tax hike in October. The IMF has been urging policymakers to carry out structural reforms while the global economy enjoys solid growth, with its managing director, Christine Lagarde, telling them to "fix the roof while the sun is shining". The IMF has stressed the need to address income inequality and reform the financial sector. However, as growth momentum peaks and risks to the outlook rise, policymakers must now focus on policies to prevent further slowdowns, the IMF said. "The main shared policy priority is for countries to resolve cooperatively and quickly their trade disagreements and the resulting policy uncertainty, rather than raising harmful barriers further and destabilizing an already slowing global economy," it added.

IMF cuts global growth forecast due to US-China trade tensions

The International Monetary Fund will resume discussions with Sri Lanka in February for further disbursal of part of a $1.5 billion loan, the lender said, after a political crisis led to talks being delayed by three months.

Sri Lanka government leaders had agreed to stick to a reform programme following a meeting with <a href="http://www.wionews.com/world/america-first-imfs-lagarde-urges-us-others-to-reject-dystopian-path-181545">IMF managing director Christine Lagarde</a> in Washington on Tuesday, the bank said in a statement.

Sri Lanka is struggling to restore investor confidence and pay down its debt after it was plunged into political turmoil in October when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament.&nbsp;

A court later ruled the move was unconstitutional, and Wickremesinghe was reinstalled as premier.

"The IMF remains ready to support the Sri Lankan authorities in these endeavours and an IMF team is scheduled to visit Colombo in mid-February to resume program discussions," Lagarde said after meeting with Finance Minister Mangala Samaraweera and the central bank governor Indrajit Coomaraswamy.

"We discussed the challenging economic environment and the policy priorities for the country. The authorities stressed Sri Lanka’s continued commitment to their economic reform agenda under the IMF-supported program," Lagarde said.&nbsp;

A series of credit rating downgrades have made it harder for Sri Lanka to borrow as it faces record high repayments of $5.9 billion this year, $2.6 billion of which fall due in the first three months.&nbsp;

On Tuesday, the island nation`s junior finance minister Eran Wickramaratne told Reuters that Sri Lanka is considering an offer from Bank of China for a loan of $300 million, which could be raised to $1 billion, to help it meet repayments in coming months.&nbsp;

Sri Lanka government leaders had agreed to stick to a reform programme following a meeting with IMF managing director Christine Lagarde in Washington.

The International Monetary Fund will resume discussions with Sri Lanka in February for further disbursal of part of a $1.5 billion loan, the lender said, after a political crisis led to talks being delayed by three months. Sri Lanka government leaders had agreed to stick to a reform programme following a meeting with IMF managing director Christine Lagarde in Washington on Tuesday, the bank said in a statement. Sri Lanka is struggling to restore investor confidence and pay down its debt after it was plunged into political turmoil in October when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. A court later ruled the move was unconstitutional, and Wickremesinghe was reinstalled as premier. "The IMF remains ready to support the Sri Lankan authorities in these endeavours and an IMF team is scheduled to visit Colombo in mid-February to resume program discussions," Lagarde said after meeting with Finance Minister Mangala Samaraweera and the central bank governor Indrajit Coomaraswamy. "We discussed the challenging economic environment and the policy priorities for the country. The authorities stressed Sri Lanka’s continued commitment to their economic reform agenda under the IMF-supported program," Lagarde said. A series of credit rating downgrades have made it harder for Sri Lanka to borrow as it faces record high repayments of $5.9 billion this year, $2.6 billion of which fall due in the first three months. On Tuesday, the island nation`s junior finance minister Eran Wickramaratne told Reuters that Sri Lanka is considering an offer from Bank of China for a loan of $300 million, which could be raised to $1 billion, to help it meet repayments in coming months.

IMF to resume Sri Lanka's loan discussion next month: Christine Lagarde

Pakistan will not approach the IMF for a new bailout package and is considering alternative options to tide over its economic crisis, Finance Minister Asad Umar said Saturday.

Minister Umar made the remarks during a meeting with businessmen at the Karachi Chamber of Commerce and Industry (KCCI).

Umar told the participants that the Imran Khan led government had decided against entering into any new bailout programme with the International Monetary Fund (IMF) for now and was exploring other possible avenues to help Pakistan's struggling economy get back on track.

Cash-strapped Pakistan is negotiating an $8 billion bailout package from the IMF to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy.

The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Khan assumed office in August.

Umar said different alternative options were being explored instead of rushing into a new IMF programme which would bring more stringent economic conditions for Pakistan.

He told the Karachi businessmen that the government would be announcing a mini-budget on January 23.

The finance minister said he was meeting with businessmen in Karachi and Lahore to discuss the amended finance bill, which he said will facilitate businessmen.

Umar indicated that the amended bill will also carry "some good news" for the Pakistan Stock Exchange (PSX).

He also made it clear that the government had signed several agreements to bring investment to the country instead of just borrowing from friendly countries.

"The impact of these investment agreements will become known from next week," he said.

Pakistan and the UAE finalised the terms and conditions of a $6.2 billion support package for Islamabad this month.

Last month, the UAE said it will soon give $3 billion to Islamabad.

In October, Saudi Arabia agreed to provide Pakistan $3 billion in foreign currency support for a year to address its balance-of-payments crisis.

During Prime Minister Khan's visit to Saudi Arabia on October 23, it was announced that the oil-rich country will provide a $6 billion package to Pakistan to support its ailing economy.

The package included $3 billion balance of payments support and $3 billion in deferred payments on oil import.

Pakistan's all-weather ally China has also pledged to provide generous aid to Islamabad to overcome its financial woes. Beijing has not yet revealed the quantum of its financial support.

Pakistan apprehends the IMF will come with stringent conditions of austerity besides scrutiny of $60 billion China-Pakistan Economic Corridor projects whose terms till now remained confidential.

The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.

Pakistan will not approach the IMF for a new bailout package and is considering alternative options to tide over its economic crisis, Finance Minister Asad Umar said Saturday.

Pakistan will not approach the IMF for a new bailout package and is considering alternative options to tide over its economic crisis, Finance Minister Asad Umar said Saturday. Minister Umar made the remarks during a meeting with businessmen at the Karachi Chamber of Commerce and Industry (KCCI). Umar told the participants that the Imran Khan led government had decided against entering into any new bailout programme with the International Monetary Fund (IMF) for now and was exploring other possible avenues to help Pakistan's struggling economy get back on track. Cash-strapped Pakistan is negotiating an $8 billion bailout package from the IMF to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy. The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Khan assumed office in August. Umar said different alternative options were being explored instead of rushing into a new IMF programme which would bring more stringent economic conditions for Pakistan. He told the Karachi businessmen that the government would be announcing a mini-budget on January 23. The finance minister said he was meeting with businessmen in Karachi and Lahore to discuss the amended finance bill, which he said will facilitate businessmen. Umar indicated that the amended bill will also carry "some good news" for the Pakistan Stock Exchange (PSX). He also made it clear that the government had signed several agreements to bring investment to the country instead of just borrowing from friendly countries. "The impact of these investment agreements will become known from next week," he said. Pakistan and the UAE finalised the terms and conditions of a $6.2 billion support package for Islamabad this month. Last month, the UAE said it will soon give $3 billion to Islamabad. In October, Saudi Arabia agreed to provide Pakistan $3 billion in foreign currency support for a year to address its balance-of-payments crisis. During Prime Minister Khan's visit to Saudi Arabia on October 23, it was announced that the oil-rich country will provide a $6 billion package to Pakistan to support its ailing economy. The package included $3 billion balance of payments support and $3 billion in deferred payments on oil import. Pakistan's all-weather ally China has also pledged to provide generous aid to Islamabad to overcome its financial woes. Beijing has not yet revealed the quantum of its financial support. Pakistan apprehends the IMF will come with stringent conditions of austerity besides scrutiny of $60 billion China-Pakistan Economic Corridor projects whose terms till now remained confidential. The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.

Pakistan not approaching IMF for new bailout programme, considers alternative options: Finance Minister

<a href="http://www.wionews.com/south-asia/sri-lanka-central-bank-seen-keeping-rates-steady-despite-pressure-on-rupee-report-186681">Sri Lanka's Central Bank </a>on Wednesday said that the Reserve Bank of India (RBI) has agreed to provide $ 400 million under a swap arrangement to boost the island nation's reserves.

"The RBI's very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflow related to imports, debt servicing and if necessary support for the currency to avoid disorderly adjustment," it said in a statement.

It said that a further request to the RBI for another SWAP arrangement of $ 1 billion is "under consideration". These are to be made available under the SAARC SWAP facility.

The RBI has agreed to provide the funds under its SAARC (South Asian Association for Regional Cooperation) Swap Facility, the Central Bank said.

Analysts said the RBI's assistance would be much appreciated by Sri Lanka given that the island is still recovering from the political and constitutional crisis in October and November which had an adverse impact on the economy with poor investor sentiment and foreign outflows of capital.

Available Central Bank data showed that in 2018, foreign investors had pulled out a net Rupees 22.8 billion out of stocks, and Rupees 159.8 billion from government securities. The Sri Lankan rupee ended last Thursday at an all-time low of 183 against the $. The rupee fell 19% in 2018, making it one of the worst-performing currencies in Asia.

Central Bank Governor Indrajith Coomaraswamy last week said that the nearly two-month-long political crisis had an adverse impact on the country's economy.

Due to the political crisis, the big three credit rating agencies — Fitch Ratings, Standard &amp; Poor's (S&amp;P) and Moody's — downgraded Sri Lanka's sovereign rating.

President Maithripala Sirisena's dramatic move on October 26 to sack Prime Minister Ranil Wickremesinghe and install former strongman Mahinda Rajapaksa in his place following differences over policy issues, left the country without a functioning government for nearly two months. However, a Supreme court verdict forced Sirisena to reinstate Wickremesinghe.

The Central Bank also announced that Finance Minister Mangala Samaraweera will visit Washington next week to resume negotiations on the IMF's assistance. The IMF had held back discussions on Lanka's next loan tranche due to the political impasse.

After completion of the IMF's fifth review, Lanka would expect to receive a sixth tranche of about — 250 million. The total loan was expected to have been disbursed with a seventh tranche by mid-2019. Sri Lanka is hoping to complete a 3-year programme with the IMF this year.&nbsp;

Sri Lanka's Central Bank said that a further request to the RBI for another SWAP arrangement of $ 1 billion is 'under consideration'.

Sri Lanka's Central Bank on Wednesday said that the Reserve Bank of India (RBI) has agreed to provide $ 400 million under a swap arrangement to boost the island nation's reserves. "The RBI's very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflow related to imports, debt servicing and if necessary support for the currency to avoid disorderly adjustment," it said in a statement. It said that a further request to the RBI for another SWAP arrangement of $ 1 billion is "under consideration". These are to be made available under the SAARC SWAP facility. The RBI has agreed to provide the funds under its SAARC (South Asian Association for Regional Cooperation) Swap Facility, the Central Bank said. Analysts said the RBI's assistance would be much appreciated by Sri Lanka given that the island is still recovering from the political and constitutional crisis in October and November which had an adverse impact on the economy with poor investor sentiment and foreign outflows of capital. Available Central Bank data showed that in 2018, foreign investors had pulled out a net Rupees 22.8 billion out of stocks, and Rupees 159.8 billion from government securities. The Sri Lankan rupee ended last Thursday at an all-time low of 183 against the $. The rupee fell 19% in 2018, making it one of the worst-performing currencies in Asia. Central Bank Governor Indrajith Coomaraswamy last week said that the nearly two-month-long political crisis had an adverse impact on the country's economy. Due to the political crisis, the big three credit rating agencies — Fitch Ratings, Standard & Poor's (S&P) and Moody's — downgraded Sri Lanka's sovereign rating. President Maithripala Sirisena's dramatic move on October 26 to sack Prime Minister Ranil Wickremesinghe and install former strongman Mahinda Rajapaksa in his place following differences over policy issues, left the country without a functioning government for nearly two months. However, a Supreme court verdict forced Sirisena to reinstate Wickremesinghe. The Central Bank also announced that Finance Minister Mangala Samaraweera will visit Washington next week to resume negotiations on the IMF's assistance. The IMF had held back discussions on Lanka's next loan tranche due to the political impasse. After completion of the IMF's fifth review, Lanka would expect to receive a sixth tranche of about — 250 million. The total loan was expected to have been disbursed with a seventh tranche by mid-2019. Sri Lanka is hoping to complete a 3-year programme with the IMF this year.

Sri Lanka's Central Bank gets $400 million swap from Reserve Bank of India

<a href="http://www.wionews.com/india-news/india-born-gita-gopinath-appointed-imf-chief-economist-168840">Prominent Indian-American economist Gita Gopinath </a>has joined as the chief economist of the International Monetary Fund, becoming the first woman to occupy the top post at the global lender.

Gopinath, 47, joined last week at a time, when she believes the world is experiencing a retreat from globalisation, posing challenges to multilateral institutions.

The John Zwaanstra professor of International Studies and Economics at Harvard University, Gopinath, a US citizen, succeeds Maurice (Maury) Obstfeld as Economic Counsellor and Director of the IMF's Research Department. Obstfeld retired December 31.

Announcing her appointment on October 1, IMF Managing Director Christine Lagarde described her as "one of the world's outstanding economists with impeccable academic credentials, a proven track record of intellectual leadership and extensive international experience."

The 11th chief economist of the IMF, Mysore-born Gopinath in a recent interview to The Harvard Gazette described her appointment at the IMF as a "tremendous honour" and said the appointment of the first ever woman for this position speaks highly of IMF's Managing Director Lagarde.

"She is phenomenal, not just in her leadership of the IMF but as a role model for women around the world," she said.

Identifying some of her top priorities at the IMF, Gopinath told The Harvard Gazette that she would like the IMF to continue to be a place that provides intellectual leadership on important policy questions.

Among the research issues that I would like to push, one would be understanding the role of dominant currencies like the dollar in international trade and finance. We could do more on the empirical side to try to understand countries' dollar exposures and on the theoretical side in terms of the implications for international spillovers, consequences of dollar shortages, etc, she said.

Most countries invoice their trade in dollars and borrow internationally in dollars. This is a central part of the international price system and the international financial system and it will be exciting to explore its consequences in greater depth with the IMF, she said.

Gopinath considers the perceived retreat from globalisation as one of the top challenges being faced by the IMF.

"The one (biggest issues being faced by the IMF) that is absolutely clear and present is that we are seeing the first serious retreat from globalisation. This has not happened in the past 50 or 60 years when the world moved toward lower tariffs and increasing trade across countries," she told the prestigious Harvard publication.

"Over the past several months, we have the US-imposed tariffs and retaliation to them from China and other nations. There is in general growing uncertainty about trade policy, including the one arising out of Brexit (the British move to leave the European Union)."

"While the trade has reduced global poverty and raised livelihoods, its consequences for inequality, and on whether the rules of engagement are fair, are real concerns that need to be addressed," she said.

Gopinath said there is also a concern about whether there is the right multilateral institutions and frameworks in place to make sure everybody feels that there is fairness in trade. "And the same goes for capital flows," she added.

"Foreign direct investment (FDI) was always viewed very favourably by countries. But because most of the FDI is now in tech-heavy firms, there are growing concerns about national security and international property theft. So I believe this retreat from globalisation and this retreat from multilateralism is quite unique to the times we are living in," Gopinath said.

Another important concern, she said, is the health of emerging markets as the US continues to normalize its interest rates.

The capital flows to several markets have reversed, putting pressure on their exchange rates and consequently on inflation, and on balance sheets, given that several emerging markets borrow heavily in dollars, said the IMF chief economist.

Gita Gopinath considers the perceived retreat from globalisation as one of the top challenges being faced by the IMF.

Prominent Indian-American economist Gita Gopinath has joined as the chief economist of the International Monetary Fund, becoming the first woman to occupy the top post at the global lender. Gopinath, 47, joined last week at a time, when she believes the world is experiencing a retreat from globalisation, posing challenges to multilateral institutions. The John Zwaanstra professor of International Studies and Economics at Harvard University, Gopinath, a US citizen, succeeds Maurice (Maury) Obstfeld as Economic Counsellor and Director of the IMF's Research Department. Obstfeld retired December 31. Announcing her appointment on October 1, IMF Managing Director Christine Lagarde described her as "one of the world's outstanding economists with impeccable academic credentials, a proven track record of intellectual leadership and extensive international experience." The 11th chief economist of the IMF, Mysore-born Gopinath in a recent interview to The Harvard Gazette described her appointment at the IMF as a "tremendous honour" and said the appointment of the first ever woman for this position speaks highly of IMF's Managing Director Lagarde. "She is phenomenal, not just in her leadership of the IMF but as a role model for women around the world," she said. Identifying some of her top priorities at the IMF, Gopinath told The Harvard Gazette that she would like the IMF to continue to be a place that provides intellectual leadership on important policy questions. Among the research issues that I would like to push, one would be understanding the role of dominant currencies like the dollar in international trade and finance. We could do more on the empirical side to try to understand countries' dollar exposures and on the theoretical side in terms of the implications for international spillovers, consequences of dollar shortages, etc, she said. Most countries invoice their trade in dollars and borrow internationally in dollars. This is a central part of the international price system and the international financial system and it will be exciting to explore its consequences in greater depth with the IMF, she said. Gopinath considers the perceived retreat from globalisation as one of the top challenges being faced by the IMF. "The one (biggest issues being faced by the IMF) that is absolutely clear and present is that we are seeing the first serious retreat from globalisation. This has not happened in the past 50 or 60 years when the world moved toward lower tariffs and increasing trade across countries," she told the prestigious Harvard publication. "Over the past several months, we have the US-imposed tariffs and retaliation to them from China and other nations. There is in general growing uncertainty about trade policy, including the one arising out of Brexit (the British move to leave the European Union)." "While the trade has reduced global poverty and raised livelihoods, its consequences for inequality, and on whether the rules of engagement are fair, are real concerns that need to be addressed," she said. Gopinath said there is also a concern about whether there is the right multilateral institutions and frameworks in place to make sure everybody feels that there is fairness in trade. "And the same goes for capital flows," she added. "Foreign direct investment (FDI) was always viewed very favourably by countries. But because most of the FDI is now in tech-heavy firms, there are growing concerns about national security and international property theft. So I believe this retreat from globalisation and this retreat from multilateralism is quite unique to the times we are living in," Gopinath said. Another important concern, she said, is the health of emerging markets as the US continues to normalize its interest rates. The capital flows to several markets have reversed, putting pressure on their exchange rates and consequently on inflation, and on balance sheets, given that several emerging markets borrow heavily in dollars, said the IMF chief economist.

Indian-American Gita Gopinath joins IMF as first female chief economist

By Kamal Munir

Reluctantly seeking an IMF bailout for its balance-of-payments crisis, Imran Khan’s nascent government in Pakistan has already devalued its currency, hiked utility rates and imposed new taxes in an effort to be “ready” for IMF reforms. As if these measures were not enough to make the government sufficiently unpopular, it now faces demands to immediately privatise large loss-making state-owned enterprises.

For a few reasons, the government has so far been reluctant to sell these off. Two reasons stand out in particular. First, selling of these state-owned enterprises is likely to generate significant unemployment. Politically speaking, this would be a highly unpopular move, as Khan’s new government promised to create millions of jobs within five years. Second, given the outstanding debts of Pakistan’s state-owned enterprises, there will be few takers unless the government clears up the balance sheets first.

Whichever course the government takes, it would be foolish to ignore the lessons from Pakistan’s troubled history of previous privatisations – three spring to mind.

Telecoms and homegrown talent

First, do not sell a state-owned enterprise because you are getting a good price. The 2005 privatisation of Pakistan Telecommunication (PTCL), the national telecoms operator, is illustrative in this regard.

After painting the highly profitable corporation as an inefficient, incompetent, out-of-date behemoth, the government sold off a 26 per cent stake (along with full management control) to Dubai-based Etisalat for $2.6 billion. Yet at the time of its privatisation, PTCL was technologically one of the strongest telecoms players in South Asia with a number of technology firsts in the region. Financially, the company had just posted annual revenues of $1.4 billion with a net profit of $452m.

Within four years of its privatisation, thanks to the incoming, highly inexperienced management, the company’s market value had declined by 75 per cent – resulting in a loss of around $3 billion for the Pakistan government (the majority shareholder). On top of that, Etisalat today still owes the government more than $800m (from the acquisition price), which would be twice the value now. Ironically, rather than recovering this amount, the government is now asking for loans from the UAE.

PTCL’s privatisation not only destroyed a treasure trove of technological capabilities that the enterprise had nurtured over decades, but it also deprived Pakistan of a chance to turn a national champion into a regional, South Asian one.

Energy sector and competition

The privatisation of Pakistan’s energy sector has single-handedly crippled the entire economy. It illustrates the importance of ensuring the new entity competes fairly to earn a profit.

From 1994 onwards, investors were invited to set up power plants in exchange for a guaranteed US dollar-based internal rate of return of 15–18 per cent. This was further backed by sovereign guarantees from the government of Pakistan (which meant an extremely high return with zero risk and zero competition).

The plants were reimbursed for all the fixed costs of the power plant including debt servicing and handed the highly lucrative equity return on top. These payments were to be made irrespective of whether or not the independent power producer was asked to produce electricity. Plus, the investors were reimbursed for all variable costs of production, regardless of the type of fuel used and its market price.

The privatisation landed Pakistan in a vicious debt cycle. Energy prices have only gone up, which is unsurprising given the independent power producers face no competition. The state has been unable to keep up with the exorbitant bills it is presented with by investors and has had to start borrowing in international and domestic markets to honour the contracts. As well as racking up huge debts, Pakistan has suffered from severe and prolonged power outages.

Banks and profitability

The third lesson comes from the privatisation of Pakistan’s banks. They became more profitable after privatisation in the early 2000s. But a closer look at their performance once privatised shows that much of this profitability came from lending to the government. Lending to the private sector actually declined. This shows the importance of not privatising when a state-owned enterprise can do the same job more cheaply.

There is little point having private banks if all they do is lend to the government, which could easily own those banks and lend to itself without having to factor in an equity return. The allocation of credit to different sectors of the economy did not improve either. Manufacturing, agriculture, and small businesses – the sectors which were supposed to benefit from privatisation – continued to be deprived of credit.

But, consistent with the general history of privatisation in Pakistan, banking privatisation was great for the new owners. Many got bargain basement deals – while doing little for the cause of national economic development.

Above all, the government should realise that in the absence of broader national development policy, privatisations are not going to yield the desired benefits. Before contemplating any sell-off, the government needs to first figure out the roles it needs various institutions to play and devise appropriate regulatory and monitoring frameworks.

Goals such as maximising the value of an enterprise before its sale or enhancing its profitability should be supplanted by aims that are in line with a larger development plan. In order to avoid the mistakes of previous governments, longer-term goals must be prioritised.

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/pakistans-privatisation-dilemma-as-it-seeks-imf-bailout-109092">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

By Kamal Munir Reluctantly seeking an IMF bailout for its balance-of-payments crisis, Imran Khan’s nascent government in Pakistan has already devalued its currency, hiked utility rates and imposed new taxes in an effort to be “ready” for IMF reforms.

By Kamal Munir Reluctantly seeking an IMF bailout for its balance-of-payments crisis, Imran Khan’s nascent government in Pakistan has already devalued its currency, hiked utility rates and imposed new taxes in an effort to be “ready” for IMF reforms. As if these measures were not enough to make the government sufficiently unpopular, it now faces demands to immediately privatise large loss-making state-owned enterprises. For a few reasons, the government has so far been reluctant to sell these off. Two reasons stand out in particular. First, selling of these state-owned enterprises is likely to generate significant unemployment. Politically speaking, this would be a highly unpopular move, as Khan’s new government promised to create millions of jobs within five years. Second, given the outstanding debts of Pakistan’s state-owned enterprises, there will be few takers unless the government clears up the balance sheets first. Whichever course the government takes, it would be foolish to ignore the lessons from Pakistan’s troubled history of previous privatisations – three spring to mind. Telecoms and homegrown talent First, do not sell a state-owned enterprise because you are getting a good price. The 2005 privatisation of Pakistan Telecommunication (PTCL), the national telecoms operator, is illustrative in this regard. After painting the highly profitable corporation as an inefficient, incompetent, out-of-date behemoth, the government sold off a 26 per cent stake (along with full management control) to Dubai-based Etisalat for $2.6 billion. Yet at the time of its privatisation, PTCL was technologically one of the strongest telecoms players in South Asia with a number of technology firsts in the region. Financially, the company had just posted annual revenues of $1.4 billion with a net profit of $452m. Within four years of its privatisation, thanks to the incoming, highly inexperienced management, the company’s market value had declined by 75 per cent – resulting in a loss of around $3 billion for the Pakistan government (the majority shareholder). On top of that, Etisalat today still owes the government more than $800m (from the acquisition price), which would be twice the value now. Ironically, rather than recovering this amount, the government is now asking for loans from the UAE. PTCL’s privatisation not only destroyed a treasure trove of technological capabilities that the enterprise had nurtured over decades, but it also deprived Pakistan of a chance to turn a national champion into a regional, South Asian one. Energy sector and competition The privatisation of Pakistan’s energy sector has single-handedly crippled the entire economy. It illustrates the importance of ensuring the new entity competes fairly to earn a profit. From 1994 onwards, investors were invited to set up power plants in exchange for a guaranteed US dollar-based internal rate of return of 15–18 per cent. This was further backed by sovereign guarantees from the government of Pakistan (which meant an extremely high return with zero risk and zero competition). The plants were reimbursed for all the fixed costs of the power plant including debt servicing and handed the highly lucrative equity return on top. These payments were to be made irrespective of whether or not the independent power producer was asked to produce electricity. Plus, the investors were reimbursed for all variable costs of production, regardless of the type of fuel used and its market price. The privatisation landed Pakistan in a vicious debt cycle. Energy prices have only gone up, which is unsurprising given the independent power producers face no competition. The state has been unable to keep up with the exorbitant bills it is presented with by investors and has had to start borrowing in international and domestic markets to honour the contracts. As well as racking up huge debts, Pakistan has suffered from severe and prolonged power outages. Banks and profitability The third lesson comes from the privatisation of Pakistan’s banks. They became more profitable after privatisation in the early 2000s. But a closer look at their performance once privatised shows that much of this profitability came from lending to the government. Lending to the private sector actually declined. This shows the importance of not privatising when a state-owned enterprise can do the same job more cheaply. There is little point having private banks if all they do is lend to the government, which could easily own those banks and lend to itself without having to factor in an equity return. The allocation of credit to different sectors of the economy did not improve either. Manufacturing, agriculture, and small businesses – the sectors which were supposed to benefit from privatisation – continued to be deprived of credit. But, consistent with the general history of privatisation in Pakistan, banking privatisation was great for the new owners. Many got bargain basement deals – while doing little for the cause of national economic development. Above all, the government should realise that in the absence of broader national development policy, privatisations are not going to yield the desired benefits. Before contemplating any sell-off, the government needs to first figure out the roles it needs various institutions to play and devise appropriate regulatory and monitoring frameworks. Goals such as maximising the value of an enterprise before its sale or enhancing its profitability should be supplanted by aims that are in line with a larger development plan. In order to avoid the mistakes of previous governments, longer-term goals must be prioritised. (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Pakistan’s privatisation dilemma as it seeks IMF bailout

The International Monetary Fund executive board on Tuesday gave final approval to a new loan package for Ukraine and released $1.4 billion for immediate use.

The IMF had agreed on the $4 billion, 14-month loan in mid-October but the board was waiting for the government to follow through with a series of economic policies before approving the aid to the war-torn nation, including raising gas and heating rates.

Another key step was approval of the 2019 budget late last month with a deficit of about 2.3 percent of GDP.

"The Ukrainian authorities have successfully restored macroeconomic stability and growth, with support from the international community," IMF number two David Lipton said in a statement.

"The authorities have taken important steps" to mitigate risks to the program, he said, but stressed that the "full and timely implementation of the program will be critical for its success in light of the difficult challenges."

Ukraine Prime Minister Volodymyr Groysman sought the additional financing from the Washington-based lender to help his crisis-hit nation.&nbsp;

But the gas price hike was a sensitive issue for the cash-strapped country as its pro-Western leadership faces presidential and parliamentary elections in 2019.

The new 14-month stand-by loan deal replaced the previous four-year financial aid package agreed in March 2015. The remainder of the funds will be released in stages after semi-annual reviews of the government's performance.

The IMF has stressed the need for continuing to protect low-income households.

But it also has set key priorities, including continuing to reduce public debt and inflation, shoring up the banking sector, and improving tax administration and privatization.

"It will be important to resist pressures to increase spending or lower taxes," Lipton said.

And progress on anti-corruption reforms and privatization "will help attract investment and improve the business climate more broadly."

The IMF expects Ukraine's economic growth to slow to 2.7 per cent next year from the projected 3.3. per cent this year, while inflation should fall below 11 per cent in 2019 from nearly 12 per cent this year.

In 2014, Moscow annexed the Crimean peninsula from Ukraine. That move was followed by a deadly conflict in eastern Ukraine between government forces and Russian-backed separatists.&nbsp;

Ukraine and its Western allies have accused Russia of funnelling troops and arms across the border but Moscow has denied the claims despite overwhelming evidence to the contrary.

The International Monetary Fund executive board on Tuesday gave final approval to a new loan package for Ukraine and released $1.4 billion for immediate use. The IMF had agreed on the $4 billion, 14-month loan in mid-October but the board was waiting for the government to follow through with a series of economic policies before approving the aid to the war-torn nation, including raising gas and heating rates.

The International Monetary Fund executive board on Tuesday gave final approval to a new loan package for Ukraine and released $1.4 billion for immediate use. The IMF had agreed on the $4 billion, 14-month loan in mid-October but the board was waiting for the government to follow through with a series of economic policies before approving the aid to the war-torn nation, including raising gas and heating rates. Another key step was approval of the 2019 budget late last month with a deficit of about 2.3 percent of GDP. "The Ukrainian authorities have successfully restored macroeconomic stability and growth, with support from the international community," IMF number two David Lipton said in a statement. "The authorities have taken important steps" to mitigate risks to the program, he said, but stressed that the "full and timely implementation of the program will be critical for its success in light of the difficult challenges." Ukraine Prime Minister Volodymyr Groysman sought the additional financing from the Washington-based lender to help his crisis-hit nation. But the gas price hike was a sensitive issue for the cash-strapped country as its pro-Western leadership faces presidential and parliamentary elections in 2019. The new 14-month stand-by loan deal replaced the previous four-year financial aid package agreed in March 2015. The remainder of the funds will be released in stages after semi-annual reviews of the government's performance. The IMF has stressed the need for continuing to protect low-income households. But it also has set key priorities, including continuing to reduce public debt and inflation, shoring up the banking sector, and improving tax administration and privatization. "It will be important to resist pressures to increase spending or lower taxes," Lipton said. And progress on anti-corruption reforms and privatization "will help attract investment and improve the business climate more broadly." The IMF expects Ukraine's economic growth to slow to 2.7 per cent next year from the projected 3.3. per cent this year, while inflation should fall below 11 per cent in 2019 from nearly 12 per cent this year. In 2014, Moscow annexed the Crimean peninsula from Ukraine. That move was followed by a deadly conflict in eastern Ukraine between government forces and Russian-backed separatists. Ukraine and its Western allies have accused Russia of funnelling troops and arms across the border but Moscow has denied the claims despite overwhelming evidence to the contrary.

IMF board approves new Ukraine loan package, releases $1.4 billion immediately

A top US lawmaker has said that any<a href="http://www.wionews.com/south-asia/imf-to-check-pakistans-debt-sustainability-before-loan-official-184060"> IMF loan to cash-strapped Pakistan </a>cannot be just a "convenient way" to repay its debt to China which has engaged many countries in a debt trap.

Pakistan is seeking USD 8 billion from the <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">International Monetary Fund (IMF) </a>to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

The US almost has a veto power in the IMF, said Democratic Congressman Brad Sherman, who in an address to a dissident Pakistani leader also said that the US aid to Pakistan which has been cut by the current Trump administration is unlikely to be restored soon.

Sherman said that last week, he has raised with the Trump administration the issue of IMF loan to Pakistan.

He spoke on this issue during a Congressional hearing with David Malpass, Under Secretary of Treasury for International Affairs.

"I've shared with him the concern that any IMF loan to Pakistan cannot be just a convenient way to repay China. China has engaged in a debt trap. We've seen it in Sri Lanka. We're seeing it in Africa. If the Chinese do that, then China has to learn that sometimes they just don't get repaid," he said. 
"In fact, this is beyond just South Asia, I'm working on a legislation that I would call Chinese Debt Trap Relief Act," Sharman said, adding that the legislation would encourage countries not to repay bad loans.

"The idea that Pakistan would turn to its own people and vilify a man who helped us destroy Osama bin Laden, does not speak well of the future of US-Pakistani relations. Our aid has been cut to Pakistan. I do not think it will be restored to major levels until the Dr (Shakil) Afridi issue is dealt with," Sherman said in his keynote address to the conference.

Dr Shakil Afridi is a Pakistani doctor serving a 33-year jail term for helping the CIA in tracking down Al-Qaeda chief Osama bin Laden to Abbottabad in 2011.

The US has been pressing Pakistan to release Dr Afridi, who was involved in a CIA-linked plan to find bin Laden with a fake vaccination operation in the Pakistani garrison city.

Sherman, who is on the financial services committee, said the US should simply instruct American banks and more importantly, American bond rating agencies to say that if there's a default on a debt, but that debt is part of a Chinese debt trap, it just doesn't count.

And then turn to the Chinese and say that it is not going to be able to use western financial institutions to penalise countries who fall into their debt traps.&nbsp;

"So if China wants to make these loans, fine. If they don't get repaid, that's their business and countries will be then free to engage in other financial transactions with countries hopefully that do not engage in such traps," Sherman said.

In his address to the conference, organised under the banner of South Asians Against Terrorism and for Human Rights (SAATH), and co-hosted by US-based columnist Mohammad Taqi and Haqqani, the top American lawmaker said that US has provided Pakistan with USD 43 billion in financial assistance post-independence.

Sherman also slammed Pakistan for blocking US websites like Voice of America inside the country.&nbsp;

A top US lawmaker has said that any IMF loan to cash-strapped Pakistan cannot be just a "convenient way" to repay its debt to China which has engaged many countries in a debt trap.

A top US lawmaker has said that any IMF loan to cash-strapped Pakistan cannot be just a "convenient way" to repay its debt to China which has engaged many countries in a debt trap. Pakistan is seeking USD 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. The US almost has a veto power in the IMF, said Democratic Congressman Brad Sherman, who in an address to a dissident Pakistani leader also said that the US aid to Pakistan which has been cut by the current Trump administration is unlikely to be restored soon. Sherman said that last week, he has raised with the Trump administration the issue of IMF loan to Pakistan. He spoke on this issue during a Congressional hearing with David Malpass, Under Secretary of Treasury for International Affairs. "I've shared with him the concern that any IMF loan to Pakistan cannot be just a convenient way to repay China. China has engaged in a debt trap. We've seen it in Sri Lanka. We're seeing it in Africa. If the Chinese do that, then China has to learn that sometimes they just don't get repaid," he said. "In fact, this is beyond just South Asia, I'm working on a legislation that I would call Chinese Debt Trap Relief Act," Sharman said, adding that the legislation would encourage countries not to repay bad loans. "The idea that Pakistan would turn to its own people and vilify a man who helped us destroy Osama bin Laden, does not speak well of the future of US-Pakistani relations. Our aid has been cut to Pakistan. I do not think it will be restored to major levels until the Dr (Shakil) Afridi issue is dealt with," Sherman said in his keynote address to the conference. Dr Shakil Afridi is a Pakistani doctor serving a 33-year jail term for helping the CIA in tracking down Al-Qaeda chief Osama bin Laden to Abbottabad in 2011. The US has been pressing Pakistan to release Dr Afridi, who was involved in a CIA-linked plan to find bin Laden with a fake vaccination operation in the Pakistani garrison city. Sherman, who is on the financial services committee, said the US should simply instruct American banks and more importantly, American bond rating agencies to say that if there's a default on a debt, but that debt is part of a Chinese debt trap, it just doesn't count. And then turn to the Chinese and say that it is not going to be able to use western financial institutions to penalise countries who fall into their debt traps. "So if China wants to make these loans, fine. If they don't get repaid, that's their business and countries will be then free to engage in other financial transactions with countries hopefully that do not engage in such traps," Sherman said. In his address to the conference, organised under the banner of South Asians Against Terrorism and for Human Rights (SAATH), and co-hosted by US-based columnist Mohammad Taqi and Haqqani, the top American lawmaker said that US has provided Pakistan with USD 43 billion in financial assistance post-independence. Sherman also slammed Pakistan for blocking US websites like Voice of America inside the country.

No 'convenient way' for Pakistan: US lawmaker on IMF loan

Trade frictions between<a href="http://www.wionews.com/world/the-trump-china-trade-war-how-will-it-end-171248"> China and the United States </a>are already affecting business confidence and investment in Asia, a senior International Monetary Fund official said, warning that the fund could further cut its global growth forecasts in January.

Changyong Rhee, director of the IMF's Asia and Pacific Department, said Japan and South Korea could be among countries in the region hit hardest by <a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930">the trade war</a>, given their reliance on exports to China.

"Investment is much weaker than expected. My interpretation is that the confidence channel is already affecting the global economy, particularly Asian economies," Rhee told Reuters.

"We see global growth a little bit slower than we forecast in October," he said on Monday.

Citing the potential fallout from the Sino-US&nbsp;trade war, the IMF cut its global growth forecast in October to 3.7 per cent for both 2018 and 2019, down from 3.9 per cent projected in July.

It expects Asia's economic growth to slow to 5.4 per cent next year from 5.6 per cent projected this year.

Rhee said there was a chance the IMF could cut further its growth forecasts when it reviews them in January, given signs of slowdown not just in Asia but in Europe and the United States.

"Uncertainty is so large ... uncertainty means you have upside potential as well as downside risk. At this moment, we believe the downside risk is a little bit higher," he said.

On China, Rhee said it was not resorting to big-scale stimulus despite growing external headwinds, given the need to deal with long-term challenges such as curbing excess debt.

"They aren't accelerating (stimulus) yet but taking the foot from the brake for the time being. But that doesn't exclude the possibility that if the trade tension escalates, if growth goes down, they are ready to use stimulus," he said.

"What we're concerned and what we're advising them is that the medium-term goals such as deleveraging are still important for financial stability," Rhee added.

"So when they actually try to use stimulus, we hope they can use more fiscal policy rather than credit expansion."

Trade frictions between China and the United States are already affecting business confidence and investment in Asia, a senior International Monetary Fund official said, warning that the fund could further cut its global growth forecasts in January.

Trade frictions between China and the United States are already affecting business confidence and investment in Asia, a senior International Monetary Fund official said, warning that the fund could further cut its global growth forecasts in January. Changyong Rhee, director of the IMF's Asia and Pacific Department, said Japan and South Korea could be among countries in the region hit hardest by the trade war, given their reliance on exports to China. "Investment is much weaker than expected. My interpretation is that the confidence channel is already affecting the global economy, particularly Asian economies," Rhee told Reuters. "We see global growth a little bit slower than we forecast in October," he said on Monday. Citing the potential fallout from the Sino-US trade war, the IMF cut its global growth forecast in October to 3.7 per cent for both 2018 and 2019, down from 3.9 per cent projected in July. It expects Asia's economic growth to slow to 5.4 per cent next year from 5.6 per cent projected this year. Rhee said there was a chance the IMF could cut further its growth forecasts when it reviews them in January, given signs of slowdown not just in Asia but in Europe and the United States. "Uncertainty is so large ... uncertainty means you have upside potential as well as downside risk. At this moment, we believe the downside risk is a little bit higher," he said. On China, Rhee said it was not resorting to big-scale stimulus despite growing external headwinds, given the need to deal with long-term challenges such as curbing excess debt. "They aren't accelerating (stimulus) yet but taking the foot from the brake for the time being. But that doesn't exclude the possibility that if the trade tension escalates, if growth goes down, they are ready to use stimulus," he said. "What we're concerned and what we're advising them is that the medium-term goals such as deleveraging are still important for financial stability," Rhee added. "So when they actually try to use stimulus, we hope they can use more fiscal policy rather than credit expansion."

Trade war already hurting Asia, may cut global growth forecasts: IMF

The IMF will conduct a proper debt sustainability analysis of <a href="http://www.wionews.com/opinions/where-is-debt-ridden-pakistan-heading-175637">Pakistan</a> before granting it any loan, a senior official has said, amid concerns that Islamabad is seeking a multibillion-dollar bailout package from the <a href="http://www.wionews.com/south-asia/pakistan-ready-to-share-details-of-cpec-debts-with-imf-for-bailout-package-finance-minister-umar-171414">global financial body</a> to pay back Chinese creditors.

Cash-strapped Pakistan is seeking US $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.

A recent meeting between the IMF and Pakistan ended in a stalemate.&nbsp;

"Clearly debt transparency is essential to conduct a proper analysis of the sustainability of a country's debt. That's what the IMF does when we are going into a programme with our member countries. So that will be the case in Pakistan," IMF Director Communications Gerry Rice told reporters at a news conference here on Thursday.&nbsp;

China is making huge infrastructure investments as part of its Belt and Road Initiative (BRI). The BRI's flagship project is the US $60 billion <a href="http://www.wionews.com/south-asia/no-imf-money-to-pakistan-to-repay-chinese-debt-us-183669">China-Pakistan Economic Corridor (CPEC)</a> that is planned to run from northwest China's Xinjiang province to Gwadar port in Pakistan's Balochistan province.&nbsp; 
There are concerns that given Pakistan's growing Chinese debt, the same could happen to the Gwadar port and other major CPEC-linked projects in Pakistan.

But China has rejected criticism that the CPEC projects have saddled Pakistan with expensive debt.&nbsp;

Following Pakistan's request for financial support, IMF team visited Islamabad in November for talks.&nbsp;

"The discussions are active. They continue to work reaching an understanding on the policy priorities and reforms to stabilise the economy, lay the foundations for sustainable and inclusive growth," he said.&nbsp;

Rice was responding to questions on a US statement that it q making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.&nbsp;

"One of the things that we do in every programme is to have a very detailed debt sustainability analysis to ensure that indeed the country's debt profile is sustainable. So kind of information and that level of detail will be available at such times as we reach conclusions on discussions and go forward with the programme,"&nbsp;he said.

Rice said debt sustainability in a country's debt profile is one of the priority issues that the IMF looks at in the context of a programme discussion with a member.&nbsp;

"So that definitely will be the case in the case of Pakistan. This level of detail and granularity will become public actually at the time of the programme agreement," he said.&nbsp;

The IMF will conduct a proper debt sustainability analysis of Pakistan before granting it any loan, a senior official has said, amid concerns that Islamabad is seeking a multibillion-dollar bailout package from the global financial body to pay back Chinese creditors.

The IMF will conduct a proper debt sustainability analysis of Pakistan before granting it any loan, a senior official has said, amid concerns that Islamabad is seeking a multibillion-dollar bailout package from the global financial body to pay back Chinese creditors. Cash-strapped Pakistan is seeking US $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. A recent meeting between the IMF and Pakistan ended in a stalemate. "Clearly debt transparency is essential to conduct a proper analysis of the sustainability of a country's debt. That's what the IMF does when we are going into a programme with our member countries. So that will be the case in Pakistan," IMF Director Communications Gerry Rice told reporters at a news conference here on Thursday. China is making huge infrastructure investments as part of its Belt and Road Initiative (BRI). The BRI's flagship project is the US $60 billion China-Pakistan Economic Corridor (CPEC) that is planned to run from northwest China's Xinjiang province to Gwadar port in Pakistan's Balochistan province. There are concerns that given Pakistan's growing Chinese debt, the same could happen to the Gwadar port and other major CPEC-linked projects in Pakistan. But China has rejected criticism that the CPEC projects have saddled Pakistan with expensive debt. Following Pakistan's request for financial support, IMF team visited Islamabad in November for talks. "The discussions are active. They continue to work reaching an understanding on the policy priorities and reforms to stabilise the economy, lay the foundations for sustainable and inclusive growth," he said. Rice was responding to questions on a US statement that it q making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt. "One of the things that we do in every programme is to have a very detailed debt sustainability analysis to ensure that indeed the country's debt profile is sustainable. So kind of information and that level of detail will be available at such times as we reach conclusions on discussions and go forward with the programme," he said. Rice said debt sustainability in a country's debt profile is one of the priority issues that the IMF looks at in the context of a programme discussion with a member. "So that definitely will be the case in the case of Pakistan. This level of detail and granularity will become public actually at the time of the programme agreement," he said.

IMF to check Pakistan's debt sustainability before loan: Official

<a href="http://www.wionews.com/business-economy/indias-growth-very-solid-government-should-heed-rbis-message-imf-182761">India's growth very solid, </a><a href="http://www.wionews.com/business-economy/indias-growth-very-solid-government-should-heed-rbis-message-imf-182761">government</a><a href="http://www.wionews.com/business-economy/indias-growth-very-solid-government-should-heed-rbis-message-imf-182761"> should heed RBI's message: IMF</a>

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.&nbsp;

<a href="http://www.wionews.com/sports/ind-vs-aus-bumrah-strikes-again-to-dismiss-skipper-paine-australia-1887-after-86-overs-182780">IND vs AUS: Bumrah strikes again to dismiss skipper Paine, Australia 188/7 after 86 overs</a>

Jasprit Bumrah struck again to dismiss settled Australian skipper Tim Paine at 41, with India now being just three wickets away from winning the first Test match.&nbsp;

Paine was sent back minutes after the teams resumed after lunch.&nbsp;

<a href="http://www.wionews.com/world/i-cant-breathe-were-khashoggis-final-words-report-182759">'I can't breathe' were Khashoggi's final words: Report</a>

Jamal Khashoggi's final words were "I can't breathe," CNN said Sunday, citing a source who has read the transcript of an audio tape of the final moments before the journalist's murder.

<a href="http://www.wionews.com/world/armenia-acting-pm-nikol-pashinyan-wins-in-snap-parliamentary-elections-182767">Armenia acting PM Nikol Pashinyan wins in snap parliamentary elections</a>

The electoral bloc of Armenia's acting prime minister Nikol Pashinyan won a landslide victory in Sunday's snap parliamentary elections, which were triggered by the reformist leader seeking to cement his political authority in the post-Soviet country.

<a href="http://www.wionews.com/world/thousands-protest-through-london-in-support-of-brexit-ahead-of-crucial-vote-182758">Thousands protest through London in support of Brexit ahead of crucial</a><a href="http://www.wionews.com/world/thousands-protest-through-london-in-support-of-brexit-ahead-of-crucial-vote-182758"> vote</a>

Ahead of a crucial vote on Britain's divorce deal with the European Union (EU), thousands of protesters marched through London in support of Brexit on Sunday amid tight security measures in place by Scotland Yard.

India's growth very solid, government should heed RBI's message: IMF It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.

India's growth very solid, government should heed RBI's message: IMF It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry. IND vs AUS: Bumrah strikes again to dismiss skipper Paine, Australia 188/7 after 86 overs Jasprit Bumrah struck again to dismiss settled Australian skipper Tim Paine at 41, with India now being just three wickets away from winning the first Test match. Paine was sent back minutes after the teams resumed after lunch. 'I can't breathe' were Khashoggi's final words: Report Jamal Khashoggi's final words were "I can't breathe," CNN said Sunday, citing a source who has read the transcript of an audio tape of the final moments before the journalist's murder. Armenia acting PM Nikol Pashinyan wins in snap parliamentary elections The electoral bloc of Armenia's acting prime minister Nikol Pashinyan won a landslide victory in Sunday's snap parliamentary elections, which were triggered by the reformist leader seeking to cement his political authority in the post-Soviet country. Thousands protest through London in support of Brexit ahead of crucial vote Ahead of a crucial vote on Britain's divorce deal with the European Union (EU), thousands of protesters marched through London in support of Brexit on Sunday amid tight security measures in place by Scotland Yard.

News brief: Big stories of the day

It is important for the Indian <a href="http://www.wionews.com/business-economy/rbi-to-pump-in-additional-liquidity-of-rs-40000-crore-in-december-179820">government to heed the RBI's message</a> on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.&nbsp;

Addressing a group of journalists here, he also said the <a href="http://www.wionews.com/india-news/govt-does-not-need-extra-funds-from-rbi-to-meet-fiscal-deficit-target-arun-jaitley-179162">International Monetary Fund does not</a> want politicians "manipulating" central banks for political ends.

"There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government.

"We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said.&nbsp;

"Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added.

Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical.

Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said.&nbsp;

Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment.

However, at the same time, he said, their moves also raised questions of transparency and accountability.&nbsp;

"So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said.

If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said.&nbsp;

"Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added.&nbsp;

After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. &nbsp;

India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government.

"India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here.

He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. 
&nbsp; 
"There is a big challenge of stricter, oversight," the economist said.

Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system.&nbsp;

"But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry. Addressing a group of journalists here, he also said the International Monetary Fund does not want politicians "manipulating" central banks for political ends. "There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government. "We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said. "Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added. Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical. Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said. Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment. However, at the same time, he said, their moves also raised questions of transparency and accountability. "So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said. If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said. "Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added. After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government. "India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here. He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. "There is a big challenge of stricter, oversight," the economist said. Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system. "But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

India's growth very solid, government should heed RBI's message: IMF

Countries that <a href="http://www.wionews.com/world/g20-opens-under-assault-from-trump-on-collective-action-180345">go it alone</a> and fail to adapt to new economic realities could face a "dystopian" future where an angry majority is left behind, IMF chief Christine Lagarde warned Tuesday.

She urged world leaders to remember the lesson of the global recession that followed the 2008 financial crisis: "International cooperation is essential, not optional."

The managing director of the Washington-based global crisis lender issued yet another plea to governments, notably the United States, to back away from protectionism and confrontation.

At a time when US President Donald Trump is engaged in global trade conflict that the IMF says puts world economic growth at risk, Lagarde said she is pleased by the "significant progress" over the weekend to defuse the US-China trade dispute.

But asked about the sharp decline in US stock markets -- which fell more than three percent due to concerns over the trade war and the impact on the economy -- Lagarde urged patience.

"Compared to what we've gone through it's progress," she said.

Lagarde delivered her message about the need for global economic cooperation wrapped in praise for the key leadership role the US plays in the world.

In the economic prosperity that followed World War II, "We learned from the past, got creative, and changed for the better," she said in a lecture at the US Library of Congress.

"None of this would have been possible without the United States. This country challenged the international economic order when it needed challenging. It forged compromise when compromise was necessary."

And it was in the US interest to take a leading role because "a stronger and more stable world paid dividends for the US," she said.

"This success did not come at the expense of other nations," Lagarde said. "On the contrary. This country's collaborative leadership paved the way not only for decades of opportunity here in America, but also for growth that spread across the world."

That contrasts sharply with Trump's "America First" rhetoric and his view of trade as a zero-sum game in which imports equate to countries taking money out of the country.

Anger and anxiety 
Policies like that could lead to an "age of anger," where inequality soars and millions are left behind, Lagarde cautioned.

Much of the anger erupting worldwide and the economic anxiety "is a legacy of the crisis," she said in response to a question.

In Britain, it was channeled into fear of foreigners and led to Brexit, but she said there is "more regret in the UK than there was only six months ago," as the consequences of leaving the European Union become apparent.

To avoid the "dystopian scenario," countries must adapt, improving cooperation among governments, to strengthen oversight, reduce corruption and reform tax collection. That will free up resources to improve infrastructure and education.

That also means fixing the trading system to reduce tensions, including getting rid of subsidies and protecting technology -- issues Trump has complained about.

The rapidly changing global economy offers "a fundamental choice: stand still and watch discord and discontent bubble over into conflict, or move forward," Lagarde said.

"Because more than ever before, what happens in one nation can impact all nations."

Countries that go it alone and fail to adapt to new economic realities could face a "dystopian" future where an angry majority is left behind, IMF chief Christine Lagarde warned Tuesday.

Countries that go it alone and fail to adapt to new economic realities could face a "dystopian" future where an angry majority is left behind, IMF chief Christine Lagarde warned Tuesday. She urged world leaders to remember the lesson of the global recession that followed the 2008 financial crisis: "International cooperation is essential, not optional." The managing director of the Washington-based global crisis lender issued yet another plea to governments, notably the United States, to back away from protectionism and confrontation. At a time when US President Donald Trump is engaged in global trade conflict that the IMF says puts world economic growth at risk, Lagarde said she is pleased by the "significant progress" over the weekend to defuse the US-China trade dispute. But asked about the sharp decline in US stock markets -- which fell more than three percent due to concerns over the trade war and the impact on the economy -- Lagarde urged patience. "Compared to what we've gone through it's progress," she said. Lagarde delivered her message about the need for global economic cooperation wrapped in praise for the key leadership role the US plays in the world. In the economic prosperity that followed World War II, "We learned from the past, got creative, and changed for the better," she said in a lecture at the US Library of Congress. "None of this would have been possible without the United States. This country challenged the international economic order when it needed challenging. It forged compromise when compromise was necessary." And it was in the US interest to take a leading role because "a stronger and more stable world paid dividends for the US," she said. "This success did not come at the expense of other nations," Lagarde said. "On the contrary. This country's collaborative leadership paved the way not only for decades of opportunity here in America, but also for growth that spread across the world." That contrasts sharply with Trump's "America First" rhetoric and his view of trade as a zero-sum game in which imports equate to countries taking money out of the country. Anger and anxiety Policies like that could lead to an "age of anger," where inequality soars and millions are left behind, Lagarde cautioned. Much of the anger erupting worldwide and the economic anxiety "is a legacy of the crisis," she said in response to a question. In Britain, it was channeled into fear of foreigners and led to Brexit, but she said there is "more regret in the UK than there was only six months ago," as the consequences of leaving the European Union become apparent. To avoid the "dystopian scenario," countries must adapt, improving cooperation among governments, to strengthen oversight, reduce corruption and reform tax collection. That will free up resources to improve infrastructure and education. That also means fixing the trading system to reduce tensions, including getting rid of subsidies and protecting technology -- issues Trump has complained about. The rapidly changing global economy offers "a fundamental choice: stand still and watch discord and discontent bubble over into conflict, or move forward," Lagarde said. "Because more than ever before, what happens in one nation can impact all nations."

America First: IMF's Lagarde urges US, others to reject 'dystopian' path

Opposition Pakistan Muslim League-Nawaz (PML-N) on Saturday demanded the resignation of Prime Minister Imran Khan, accusing him of lying to the nation and secretly agreeing to the IMF's condition to secure loans that caused the historic devaluation of the country's currency.

Pakistani Rupee suffered a massive hit on Friday as the dollar rose to an all-time high at Rs 144, a day after the government celebrated its 100-day achievements.

Experts believe that the devaluation was linked with the government's talks with the International Monetary Fund (IMF) to secure loan.

Recently, cash-strapped Pakistan's negotiations with the IMF for a bailout package faced difficulties as the international lender sought complete disclosure of Chinese financial support and hiking of energy prices and levying more taxes.

"Historic devaluation of the rupee (from Rs134 to Rs144 against one US dollar) shows the Imran Khan government has signed the agreement with the IMF without taking anyone onboard," PML-N's central spokesperson Marriyum Aurangzeb said in a statement.

Stating that people of Pakistan have a right to know the conditions of the pact, Aurangzeb said that the sudden devaluation of the Pakistani currency is the proof of the fact that government has agreed to the conditions of the IMF and has signed their agreement.

"The Pakistan Tehreek-i-Insaf government has once again lied to the nation about the IMF loan agreement. Finance Minister Asad Umar lied to the people of Pakistan about their dealings with IMF. This sharp increase in dollar's price is another one of the PTI government's massive con-jobs," Aurangzeb, a former information minister in the PMLN government, said.

She said that the devaluation of the rupee will open floodgates of inflation on the already crushed people of Pakistan while PM Khan is not doing anything other than uttering meaningless comfort cliches "Ghabraana Nai Hai".

"Imran Khan should resign because he has betrayed the trust of the people of Pakistan.

The circumstances and mood of the nation is clear that they would not bear this Chicken-Egg Policy government while they are crushed under inflation and taxes, because it has been established that government is severely incapacitated to run the affairs of the state," she said.

Opposition Pakistan Muslim League-Nawaz (PML-N) on Saturday demanded the resignation of Prime Minister Imran Khan, accusing him of lying to the nation and secretly agreeing to the IMF's condition to secure loans that caused the historic devaluation of the country's currency.

Opposition Pakistan Muslim League-Nawaz (PML-N) on Saturday demanded the resignation of Prime Minister Imran Khan, accusing him of lying to the nation and secretly agreeing to the IMF's condition to secure loans that caused the historic devaluation of the country's currency. Pakistani Rupee suffered a massive hit on Friday as the dollar rose to an all-time high at Rs 144, a day after the government celebrated its 100-day achievements. Experts believe that the devaluation was linked with the government's talks with the International Monetary Fund (IMF) to secure loan. Recently, cash-strapped Pakistan's negotiations with the IMF for a bailout package faced difficulties as the international lender sought complete disclosure of Chinese financial support and hiking of energy prices and levying more taxes. "Historic devaluation of the rupee (from Rs134 to Rs144 against one US dollar) shows the Imran Khan government has signed the agreement with the IMF without taking anyone onboard," PML-N's central spokesperson Marriyum Aurangzeb said in a statement. Stating that people of Pakistan have a right to know the conditions of the pact, Aurangzeb said that the sudden devaluation of the Pakistani currency is the proof of the fact that government has agreed to the conditions of the IMF and has signed their agreement. "The Pakistan Tehreek-i-Insaf government has once again lied to the nation about the IMF loan agreement. Finance Minister Asad Umar lied to the people of Pakistan about their dealings with IMF. This sharp increase in dollar's price is another one of the PTI government's massive con-jobs," Aurangzeb, a former information minister in the PMLN government, said. She said that the devaluation of the rupee will open floodgates of inflation on the already crushed people of Pakistan while PM Khan is not doing anything other than uttering meaningless comfort cliches "Ghabraana Nai Hai". "Imran Khan should resign because he has betrayed the trust of the people of Pakistan. The circumstances and mood of the nation is clear that they would not bear this Chicken-Egg Policy government while they are crushed under inflation and taxes, because it has been established that government is severely incapacitated to run the affairs of the state," she said.

Imran Khan should resign for lying, secretly agreeing to IMF's condition: PML-N 

Pakistan's rupee plunged almost five per cent to a record low Friday after what appeared to be a sixth devaluation by the central bank in the past year as the country struggles with an acute balance of payment crisis.

The unit sank to 143 rupees against the dollar just a day after Prime Minister Imran Khan’s government celebrated 100 days in office with a televised conference boasting of its achievements.

The State Bank of Pakistan has indirectly devalued the state-managed unit several times already as it tries to&nbsp;narrow a huge balance of payments deficit.

But traders are growing concerned that neither Khan nor his Finance Minister Asad Umar laid out a comprehensive plan to address the country’s economic woes more than a week after negotiations with the International Monetary Fund ended without a much-needed bailout agreement.

The former cricketer has launched a highly publicised austerity drive since being sworn in, including auctioning off government-owned luxury vehicles and buffaloes, in addition to seeking loans from "friendly countries" and making overtures to the IMF.

"The market was disappointed to see that there was no clear-cut direction of the government regarding raising loans from IMF or taxation policies for the rest of its term," said Hamad Iqbal, director of research at Elixir Securities.

The rupee has lost about a third of its value since the start of the year as&nbsp;Pakistan&nbsp;struggles with chronic inflation as it burns through its dwindling foreign currency reserves, which are down around 40 per cent this year.

Pakistan&nbsp;secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan's visit to the kingdom in October.

Despite the pledges, the ministry of finance said Pakistan&nbsp;would still seek broader IMF support for the government's long-term economic planning.

With talks with the IMF still ongoing --Pakistan&nbsp;has been a regular borrower from the IMF since the 1980s -- Khan's new government has been searching for ways to rally its struggling economy.

Islamabad has received billions of dollars in Chinese loans to finance ambitious infrastructure projects, but the US -- one of the IMF's biggest donors -- has raised fears that&nbsp;Pakistan&nbsp;could use any bailout money to repay its debts to Beijing.&nbsp;

The IMF and World Bank forecasts suggest the Pakistani economy is likely to grow by four to 4.5 percent for the year fiscal year ending June 2019 compared to 5.8 percent growth in the last fiscal year.

Pakistan's rupee plunged almost five per cent to a record low Friday after what appeared to be a sixth devaluation by the central bank in the past year as the country struggles with an acute balance of payment crisis.

Pakistan's rupee plunged almost five per cent to a record low Friday after what appeared to be a sixth devaluation by the central bank in the past year as the country struggles with an acute balance of payment crisis. The unit sank to 143 rupees against the dollar just a day after Prime Minister Imran Khan’s government celebrated 100 days in office with a televised conference boasting of its achievements. The State Bank of Pakistan has indirectly devalued the state-managed unit several times already as it tries to narrow a huge balance of payments deficit. But traders are growing concerned that neither Khan nor his Finance Minister Asad Umar laid out a comprehensive plan to address the country’s economic woes more than a week after negotiations with the International Monetary Fund ended without a much-needed bailout agreement. The former cricketer has launched a highly publicised austerity drive since being sworn in, including auctioning off government-owned luxury vehicles and buffaloes, in addition to seeking loans from "friendly countries" and making overtures to the IMF. "The market was disappointed to see that there was no clear-cut direction of the government regarding raising loans from IMF or taxation policies for the rest of its term," said Hamad Iqbal, director of research at Elixir Securities. The rupee has lost about a third of its value since the start of the year as Pakistan struggles with chronic inflation as it burns through its dwindling foreign currency reserves, which are down around 40 per cent this year. Pakistan secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan's visit to the kingdom in October. Despite the pledges, the ministry of finance said Pakistan would still seek broader IMF support for the government's long-term economic planning. With talks with the IMF still ongoing --Pakistan has been a regular borrower from the IMF since the 1980s -- Khan's new government has been searching for ways to rally its struggling economy. Islamabad has received billions of dollars in Chinese loans to finance ambitious infrastructure projects, but the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing. The IMF and World Bank forecasts suggest the Pakistani economy is likely to grow by four to 4.5 percent for the year fiscal year ending June 2019 compared to 5.8 percent growth in the last fiscal year.

Pakistan rupee hits record low, no news on IMF lifeline

Thousands of people from social groups gathered in a sports stadium in Buenos Aires on Tuesday (November 27) to protest against the G20 at the end of this week and against President Mauricio Macri, after he reached a $57 billion deal with the International Monetary Fund in September to tackle a weathering economic crisis in the country.

Argentina has vowed to crack down on any anarchists and anti-capitalist protesters who try to disrupt the G20, saying it was working with foreign governments to identify and block entry to potential trouble-makers.

This year's G20 summit will be held in the Argentine capital from November 30 to December 1. Local leftist groups are planning marches against the gathering and have invited activists from around the world to join them.

The event will be guarded by 22,000 police and 700 security ministry agents, and the government has been in contact with a number of foreign security services, including those in the United States, Britain, Brazil, Italy and Spain, she said.

Thousands of people from social groups gathered in a sports stadium in Buenos Aires on Tuesday (November 27) to protest against the G20 at the end of this week and against President Mauricio Macri, after he reached a $57 billion deal with the International Monetary Fund in September to tackle a weathering economic crisis in the country.

Thousands of people from social groups gathered in a sports stadium in Buenos Aires on Tuesday (November 27) to protest against the G20 at the end of this week and against President Mauricio Macri, after he reached a $57 billion deal with the International Monetary Fund in September to tackle a weathering economic crisis in the country. Argentina has vowed to crack down on any anarchists and anti-capitalist protesters who try to disrupt the G20, saying it was working with foreign governments to identify and block entry to potential trouble-makers. This year's G20 summit will be held in the Argentine capital from November 30 to December 1. Local leftist groups are planning marches against the gathering and have invited activists from around the world to join them. The event will be guarded by 22,000 police and 700 security ministry agents, and the government has been in contact with a number of foreign security services, including those in the United States, Britain, Brazil, Italy and Spain, she said.

Social groups protest against G20 and IMF in Argentina

Pakistan is likely to pay off an International Monetary Fund bailout before its loans from China come due, easing concerns that IMF funds will be used to pay back Chinese creditors, the US Treasury`s top diplomat said on Tuesday.

David Malpass, the Treasury`s undersecretary for international affairs, told a US Senate Foreign Relations subcommittee hearing that the Trump administration was pushing for more transparency in Chinese lending, including to Pakistan.&nbsp;

Pakistan is negotiating with the IMF over terms of its second bailout since 2013, a loan package valued at about $6 billion, according to local media, with a deal now expected in mid-January.

Pakistan`s new president, Imran Khan, requested the bailout in October to deal with a mounting balance-of-payments crisis.

Pakistan is a major recipient of China`s Belt and Road infrastructure initiative, with Beijing pledging to finance some $60 billion in port, road and railway projects there. But Pakistan`s debt woes have prompted Islamabad to scale back some of the projects.&nbsp;

"One of the challenges is that in many cases they haven`t disclosed the terms of that debt," Malpass said of the Chinese loans to Pakistan. "In general terms, we think the maturity of the Chinese debt comes after the IMF would have been repaid."

Secretary of State Mike Pompeo said earlier this year that there was "no rationale" for a program that repays Pakistan`s loans to China.&nbsp; 
Malpass said the challenge in the Pakistan-IMF talks is to forge a program that will foster "substantial economic reform" in Pakistan and put its finances on sustainable path.

A US Treasury delegation was recently in Pakistan to work with local officials, he added.

Malpass also said a lack of transparency in Chinese lending was not unique to Pakistan, noting that basic terms like the interest rate and maturity are often not disclosed, sometimes even to some parts of the borrower governments.

"China is lending in many countries where the terms of the loan are simply not given and that gives China a lot of leverage within its program," Malpass said. "And it`s something that we`re pushing back on very hard in the Paris Club, in the OECD, in the IMF, the World Bank, at the G20 and in the G7."

Earlier on Tuesday, China`s ambassador to the United States, Cui Tiankai, pushed back against any suggestion that China`s infrastructure loans were causing debt crises.

"How can you say building roads and bridges will hurt their economies?" Cui told Reuters in an interview.

"If they do not need it, they will not ask us to build it. That`s quite clear. All these things are done based on mutual agreement between the countries concerned and China."&nbsp;

Pakistan is likely to pay off an International Monetary Fund bailout before its loans from China come due, easing concerns that IMF funds will be used to pay back Chinese creditors, the US Treasury`s top diplomat said on Tuesday.

Pakistan is likely to pay off an International Monetary Fund bailout before its loans from China come due, easing concerns that IMF funds will be used to pay back Chinese creditors, the US Treasury`s top diplomat said on Tuesday. David Malpass, the Treasury`s undersecretary for international affairs, told a US Senate Foreign Relations subcommittee hearing that the Trump administration was pushing for more transparency in Chinese lending, including to Pakistan. Pakistan is negotiating with the IMF over terms of its second bailout since 2013, a loan package valued at about $6 billion, according to local media, with a deal now expected in mid-January. Pakistan`s new president, Imran Khan, requested the bailout in October to deal with a mounting balance-of-payments crisis. Pakistan is a major recipient of China`s Belt and Road infrastructure initiative, with Beijing pledging to finance some $60 billion in port, road and railway projects there. But Pakistan`s debt woes have prompted Islamabad to scale back some of the projects. "One of the challenges is that in many cases they haven`t disclosed the terms of that debt," Malpass said of the Chinese loans to Pakistan. "In general terms, we think the maturity of the Chinese debt comes after the IMF would have been repaid." Secretary of State Mike Pompeo said earlier this year that there was "no rationale" for a program that repays Pakistan`s loans to China. Malpass said the challenge in the Pakistan-IMF talks is to forge a program that will foster "substantial economic reform" in Pakistan and put its finances on sustainable path. A US Treasury delegation was recently in Pakistan to work with local officials, he added. Malpass also said a lack of transparency in Chinese lending was not unique to Pakistan, noting that basic terms like the interest rate and maturity are often not disclosed, sometimes even to some parts of the borrower governments. "China is lending in many countries where the terms of the loan are simply not given and that gives China a lot of leverage within its program," Malpass said. "And it`s something that we`re pushing back on very hard in the Paris Club, in the OECD, in the IMF, the World Bank, at the G20 and in the G7." Earlier on Tuesday, China`s ambassador to the United States, Cui Tiankai, pushed back against any suggestion that China`s infrastructure loans were causing debt crises. "How can you say building roads and bridges will hurt their economies?" Cui told Reuters in an interview. "If they do not need it, they will not ask us to build it. That`s quite clear. All these things are done based on mutual agreement between the countries concerned and China."

Pakistan likely to pay back IMF before Chinese debt: US Treasury official

A team from the International Monetary Fund concluded its visit to Pakistan Tuesday, the government said, adding that "substantive progress" had been made but talks will continue on a possible bailout.

The IMF mission held "extensive talks" with Pakistani officials during the visit, which began on November 7, the finance ministry said in a statement.&nbsp;

"Substantive progress has been made by the government of Pakistan and the IMF Mission towards developing a common understanding on the policy and structural reforms framework for the prospective IMF programme," the statement continued.

"The positive engagement with the IMF will continue over the coming weeks to finalise the programme with the Fund."

Pakistan -- which has gone to the IMF repeatedly since the late 1980s -- is facing a widening balance of payments crisis.

But earlier this month finance minister Asad Umar said that unspecified assurances from China -- combined with a pledge made by Saudi Arabia in October -- meant that Pakistan's immediate fiscal woes were "over".&nbsp;

Riyadh pledged US $6 billion in funding and struck a 12-month deal for a balance of payments lifeline during a visit by Prime Minister Imran Khan.&nbsp;

No further announcement has been made about any Chinese assistance.

Despite the pledges, Pakistan has said it will still seek broader IMF support for the government's long-term economic planning.

In his statement, Umar said the reforms discussed included "fiscal and monetary measures, corrective interventions for balance of payments sustainability, pro-poor spending, governance and development of a business-friendly environment".

Khan's new government has been searching for ways to rally a struggling economy hit by inflation, and shore up Pakistan's dwindling foreign currency reserves.&nbsp;

The former cricketer has launched a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, in addition to seeking loans from "friendly countries" and making overtures to the IMF.

However, Islamabad has received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing.

Islamabad, which last received an IMF bailout in 2013 to the tune of US $6.6 billion, has refuted these claims.

A team from the International Monetary Fund concluded its visit to Pakistan Tuesday, the government said, adding that "substantive progress" had been made but talks will continue on a possible bailout.

A team from the International Monetary Fund concluded its visit to Pakistan Tuesday, the government said, adding that "substantive progress" had been made but talks will continue on a possible bailout. The IMF mission held "extensive talks" with Pakistani officials during the visit, which began on November 7, the finance ministry said in a statement. "Substantive progress has been made by the government of Pakistan and the IMF Mission towards developing a common understanding on the policy and structural reforms framework for the prospective IMF programme," the statement continued. "The positive engagement with the IMF will continue over the coming weeks to finalise the programme with the Fund." Pakistan -- which has gone to the IMF repeatedly since the late 1980s -- is facing a widening balance of payments crisis. But earlier this month finance minister Asad Umar said that unspecified assurances from China -- combined with a pledge made by Saudi Arabia in October -- meant that Pakistan's immediate fiscal woes were "over". Riyadh pledged US $6 billion in funding and struck a 12-month deal for a balance of payments lifeline during a visit by Prime Minister Imran Khan. No further announcement has been made about any Chinese assistance. Despite the pledges, Pakistan has said it will still seek broader IMF support for the government's long-term economic planning. In his statement, Umar said the reforms discussed included "fiscal and monetary measures, corrective interventions for balance of payments sustainability, pro-poor spending, governance and development of a business-friendly environment". Khan's new government has been searching for ways to rally a struggling economy hit by inflation, and shore up Pakistan's dwindling foreign currency reserves. The former cricketer has launched a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, in addition to seeking loans from "friendly countries" and making overtures to the IMF. However, Islamabad has received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing. Islamabad, which last received an IMF bailout in 2013 to the tune of US $6.6 billion, has refuted these claims.

IMF team ends Pakistan visit as talks continue

<a href="http://www.wionews.com/india-news/have-made-up-my-mind-not-to-contest-next-elections-sushma-swaraj-178379">Have made up my mind not to contest next elections: Sushma Swaraj</a>

The BJP's Sushma Swaraj said Wednesday that she will not contest the 2019 elections.&nbsp;

"It is the party which decides, but I have made up my mind not to contest next elections," Swaraj said (watch video below).

News reports said Swaraj was stepping down for health reasons.&nbsp;

 
<a href="http://www.wionews.com/business-economy/after-rbi-relaxes-deadline-banks-will-be-able-to-lend-extra-35-42-billion-sources-178403">After RBI relaxes deadline, banks will be able to lend </a><a href="http://www.wionews.com/business-economy/after-rbi-relaxes-deadline-banks-will-be-able-to-lend-extra-35-42-billion-sources-178403">extra</a><a href="http://www.wionews.com/business-economy/after-rbi-relaxes-deadline-banks-will-be-able-to-lend-extra-35-42-billion-sources-178403"> $35-42 billion: Sources</a>

The Reserve Bank of India (RBI) estimates that Indian banks will have capacity to lend an extra 2.5 trillion rupees to 3.0 trillion rupees ($35 billion to $42 billion) over the next year after it decided to relax a deadline for lenders to boost capital ratios, two sources aware of discussions on the matter said on Tuesday.

 
<a href="http://www.wionews.com/world/after-khashoggi-murder-some-saudi-royals-turn-against-kings-favourite-son-178419">After Khashoggi murder, some Saudi royals turn against king’s favourite son</a>

Amid international uproar over the killing of journalist Jamal Khashoggi, some members of Saudi Arabia's ruling family are agitating to prevent Crown Prince Mohammed bin Salman from becoming king, three sources close to the royal court said.

 
<a href="http://www.wionews.com/south-asia/imf-demands-details-of-pakistans-financial-assistance-deal-with-china-report-178365">IMF demands details of Pakistan's financial assistance deal with China: Report</a>

The IMF has demanded Pakistan provide all details of China's financial support to the cash-strapped country to avail a bailout package from it, according to media reports.&nbsp;

 
<a href="http://www.wionews.com/south-asia/china-believes-maldives-will-make-correct-choice-on-trade-deal-178402">China believes </a><a href="http://www.wionews.com/south-asia/china-believes-maldives-will-make-correct-choice-on-trade-deal-178402">Maldives</a><a href="http://www.wionews.com/south-asia/china-believes-maldives-will-make-correct-choice-on-trade-deal-178402"> will make 'correct choice' to continue with </a><a href="http://www.wionews.com/south-asia/china-believes-maldives-will-make-correct-choice-on-trade-deal-178402">free</a><a href="http://www.wionews.com/south-asia/china-believes-maldives-will-make-correct-choice-on-trade-deal-178402"> trade deal</a>

China believes the Maldives will make the "correct choice" to continue with a bilateral free trade deal, a foreign ministry spokesman said on Tuesday, after a Maldives politician said the tiny nation would pull out of the pact.

Mohamed Nasheed, the chief of the Maldivian Democratic Party, which leads the ruling federal alliance, told Reuters this week that it was a mistake to strike such a deal with the world's second biggest economy.

Have made up my mind not to contest next elections: Sushma Swaraj The BJP's Sushma Swaraj said Wednesday that she will not contest the 2019 elections. "It is the party which decides, but I have made up my mind not to contest next elections," Swaraj said (watch video below).

Have made up my mind not to contest next elections: Sushma Swaraj The BJP's Sushma Swaraj said Wednesday that she will not contest the 2019 elections. "It is the party which decides, but I have made up my mind not to contest next elections," Swaraj said (watch video below). News reports said Swaraj was stepping down for health reasons. After RBI relaxes deadline, banks will be able to lend extra $35-42 billion: Sources The Reserve Bank of India (RBI) estimates that Indian banks will have capacity to lend an extra 2.5 trillion rupees to 3.0 trillion rupees ($35 billion to $42 billion) over the next year after it decided to relax a deadline for lenders to boost capital ratios, two sources aware of discussions on the matter said on Tuesday. After Khashoggi murder, some Saudi royals turn against king’s favourite son Amid international uproar over the killing of journalist Jamal Khashoggi, some members of Saudi Arabia's ruling family are agitating to prevent Crown Prince Mohammed bin Salman from becoming king, three sources close to the royal court said. IMF demands details of Pakistan's financial assistance deal with China: Report The IMF has demanded Pakistan provide all details of China's financial support to the cash-strapped country to avail a bailout package from it, according to media reports. China believes Maldives will make 'correct choice' to continue with free trade deal China believes the Maldives will make the "correct choice" to continue with a bilateral free trade deal, a foreign ministry spokesman said on Tuesday, after a Maldives politician said the tiny nation would pull out of the pact. Mohamed Nasheed, the chief of the Maldivian Democratic Party, which leads the ruling federal alliance, told Reuters this week that it was a mistake to strike such a deal with the world's second biggest economy.

The IMF has expressed dissatisfaction at the current state of Pakistan's tax collection as the cash-strapped government sought a bailout package of up to $6 billion from the multilateral lender to overcome the economic challenges, media reports said Tuesday.

The cash-strapped Pakistani government led by Prime Minister Imran Khan is facing grave economic challenges as it struggles to keep the economy afloat.

Last month, Saudi Arabia said it would provide Pakistan with a USD 6 billion rescue package, but officials have said it is not enough, and Islamabad still plans to seek a bailout from the International Monetary Fund (IMF).

Pakistan may ask the IMF for up to USD 6 billion, Geo News reported. If approved, it would be Pakistan's 13th rescue package from the multilateral lender since the late 1980s.

Pakistan formally approached the IMF in October for loans.&nbsp;

An IMF team is currently reviewing Pakistan's monetary and fiscal policies as well as its monetary needs in keeping with the current account deficit.

On Monday, the delegation, which has already concluded the technical discussions with the Pakistani representatives, commenced its policy-level talks with ministers and representatives of the Federal Board of Revenue (FBR).

Members of the team, led by Harald Finger, a senior economist and an adviser to the IMF, further stressed on effective measures required to increase the tax collection in order for Pakistan to deal with and recover from its financial crunch and current account deficit, Geo News reported.

According to the report, the IMF also indicated its support towards the FBR's move to send notices to thousands of tax defaulters.

There were two rounds of policy-level talks. Druing the first one, the IMF delegation met with Finance Minister Asad Umar and officials from the State Bank of Pakistan (SBP), whereas in the second, it met with the FBR representatives.

The IMF delegation was briefed on the tax collection target for the ongoing fiscal year as well as the financial performance during the first four months, starting July 1, 2018 (FY18-19).

The IMF team said it was difficult to achieve the goal of curbing the financial crisis without increasing the tax collection, it quoted sources as saying. They also underscored the need to widen the tax scope.

The fund is reported to have raised questions over more than Rs 90 billion revenue shortfall in the first four months of the current fiscal year and wondered how the projected fiscal deficit target of 5.1 per cent could be achieved when development programme had already been curtailed to a bare minimum, Dawn newspaper reported.

The IMF is also dissatisfied over the performance of the power sector whose losses and recoveries are reported to have gone down rather than improving since the last IMF programme was completed in Sept 2016, leading to build up of circular debt beyond Rs 1.2 trillion and creating supply side constraints, it said.

Informed sources told the paper that the authorities briefed the IMF delegation about the subsidies envisaged in the 2018-19 budget and those committed by the Khan government since it came to power three months ago.&nbsp;

The discussions are set to continue till November 20, the report said. From November 7 ? when the IMF team arrived in Pakistan ? to November 9, technical talks were held, during which data pertaining to the performance of various sectors was presented.

The IMF team would also review the apex bank, SBP's financial independence and the FBR's performance, the report said.&nbsp;

IMF Managing Director Christine Lagarde has said that Pakistan has requested financial assistance from the IMF to help address the country's economic challenges.

At the same time, she said the IMF would require "absolute transparency" of Pakistan's debts, including those owed to China, apparently referring to the USD 60 billion China-Pakistan Economic Corridor (CPEC) projects.&nbsp;

The CPEC is a network of infrastructure projects that are currently under construction throughout Pakistan that will connect China's Xinjiang province with Gwadar port in Pakistan's Balochistan province. It is the part of Chinese President Xi Jinping's ambitious Belt and Road Initiative.&nbsp;

The US has said that the huge Chinese debt was responsible for the economic challenges facing Pakistan, adding that it will review Islamabad's bailout plea to the IMF from all angles, including the country's debt position.

The IMF has expressed dissatisfaction at the current state of Pakistan's tax collection as the cash-strapped government sought a bailout package of up to $6 billion from the multilateral lender to overcome the economic challenges, media reports said Tuesday.

The IMF has expressed dissatisfaction at the current state of Pakistan's tax collection as the cash-strapped government sought a bailout package of up to $6 billion from the multilateral lender to overcome the economic challenges, media reports said Tuesday. The cash-strapped Pakistani government led by Prime Minister Imran Khan is facing grave economic challenges as it struggles to keep the economy afloat. Last month, Saudi Arabia said it would provide Pakistan with a USD 6 billion rescue package, but officials have said it is not enough, and Islamabad still plans to seek a bailout from the International Monetary Fund (IMF). Pakistan may ask the IMF for up to USD 6 billion, Geo News reported. If approved, it would be Pakistan's 13th rescue package from the multilateral lender since the late 1980s. Pakistan formally approached the IMF in October for loans. An IMF team is currently reviewing Pakistan's monetary and fiscal policies as well as its monetary needs in keeping with the current account deficit. On Monday, the delegation, which has already concluded the technical discussions with the Pakistani representatives, commenced its policy-level talks with ministers and representatives of the Federal Board of Revenue (FBR). Members of the team, led by Harald Finger, a senior economist and an adviser to the IMF, further stressed on effective measures required to increase the tax collection in order for Pakistan to deal with and recover from its financial crunch and current account deficit, Geo News reported. According to the report, the IMF also indicated its support towards the FBR's move to send notices to thousands of tax defaulters. There were two rounds of policy-level talks. Druing the first one, the IMF delegation met with Finance Minister Asad Umar and officials from the State Bank of Pakistan (SBP), whereas in the second, it met with the FBR representatives. The IMF delegation was briefed on the tax collection target for the ongoing fiscal year as well as the financial performance during the first four months, starting July 1, 2018 (FY18-19). The IMF team said it was difficult to achieve the goal of curbing the financial crisis without increasing the tax collection, it quoted sources as saying. They also underscored the need to widen the tax scope. The fund is reported to have raised questions over more than Rs 90 billion revenue shortfall in the first four months of the current fiscal year and wondered how the projected fiscal deficit target of 5.1 per cent could be achieved when development programme had already been curtailed to a bare minimum, Dawn newspaper reported. The IMF is also dissatisfied over the performance of the power sector whose losses and recoveries are reported to have gone down rather than improving since the last IMF programme was completed in Sept 2016, leading to build up of circular debt beyond Rs 1.2 trillion and creating supply side constraints, it said. Informed sources told the paper that the authorities briefed the IMF delegation about the subsidies envisaged in the 2018-19 budget and those committed by the Khan government since it came to power three months ago. The discussions are set to continue till November 20, the report said. From November 7 ? when the IMF team arrived in Pakistan ? to November 9, technical talks were held, during which data pertaining to the performance of various sectors was presented. The IMF team would also review the apex bank, SBP's financial independence and the FBR's performance, the report said. IMF Managing Director Christine Lagarde has said that Pakistan has requested financial assistance from the IMF to help address the country's economic challenges. At the same time, she said the IMF would require "absolute transparency" of Pakistan's debts, including those owed to China, apparently referring to the USD 60 billion China-Pakistan Economic Corridor (CPEC) projects. The CPEC is a network of infrastructure projects that are currently under construction throughout Pakistan that will connect China's Xinjiang province with Gwadar port in Pakistan's Balochistan province. It is the part of Chinese President Xi Jinping's ambitious Belt and Road Initiative. The US has said that the huge Chinese debt was responsible for the economic challenges facing Pakistan, adding that it will review Islamabad's bailout plea to the IMF from all angles, including the country's debt position.

IMF dissatisfied with Pakistan's fiscal policies: Reports

Economic growth in the energy-rich<a href="http://www.wionews.com/world/imf-fears-possible-italy-contagion-to-weaker-european-economies-176252"> Gulf will recover in 2018 from a</a> contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.

The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 per cent in 2018 and 3.0 per cent in 2019, after a contraction of 0.4 per cent last year. &nbsp;

Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues.

But "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA).

After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April.

Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 per cent in 2018, from three per cent the previous year, and pick up modestly to 0.9 per cent in 2019, the IMF said.

"This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least," the IMF said.

It projected Iran's economy to shrink by 1.6 per cent this year and 3.6 per cent in 2019.

For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 per cent in 2018, before dropping back to four per cent next year, the IMF said.&nbsp;

This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said.

Oil revenues for MENA exporters have increased by about $260 billion&nbsp;over the period 2016 to 2018.

This has mostly been due to a price rise generated by production cuts in nations belonging to the OPEC cartel, as well as non-OPEC producers.&nbsp;

The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said.

The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE.

It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.

Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.

Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday. The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 per cent in 2018 and 3.0 per cent in 2019, after a contraction of 0.4 per cent last year. Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues. But "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA). After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April. Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 per cent in 2018, from three per cent the previous year, and pick up modestly to 0.9 per cent in 2019, the IMF said. "This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least," the IMF said. It projected Iran's economy to shrink by 1.6 per cent this year and 3.6 per cent in 2019. For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 per cent in 2018, before dropping back to four per cent next year, the IMF said. This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said. Oil revenues for MENA exporters have increased by about $260 billion over the period 2016 to 2018. This has mostly been due to a price rise generated by production cuts in nations belonging to the OPEC cartel, as well as non-OPEC producers. The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said. The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE. It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.

Growth prospects in Gulf countries uncertain due to oil prices: IMF

Pakistan's finance minister said on Tuesday his country's balance of payments crisis was over, a day before a team from the International Monetary Fund (IMF) is due to arrive to discuss a potential aid package.

Asad Umar said a combined $6 billion of Saudi money and promised funds from China would cover a projected $12 billion shortfall in foreign currency to service Pakistan's debt.

"So, Pakistan’s immediate balance of payment crises is over. That I can tell you categorically that now we don’t have anymore a balance of payment crises," he told a news briefing, without mentioning the IMF.

The discussion on Pakistan's multibillion-dollar bailout application would begin on Wednesday, PTI had reported.&nbsp;

Last month, Pakistan Finance Minister Asad Umar had made a formal request for financial assistance from the IMF.

"We expect those discussions to begin on November the 7th. An IMF staff mission will go to Islamabad and initiate discussions with the authorities," IMF Director of Communications Gerry Rice was quoted as saying by PTI.

"The objectives of that program is to help stabilise the Pakistan economy, put in place the preconditions for sustained inclusive growth," Rice said, adding that the modalities of that would be announced once the IMF and Pakistan have reached a staff-level agreement.

Once it is reached, Rice elaborated that they would go forward to IMF Board for the formal approval of the program.

(With inputs from news agencies)

Pakistan's finance minister said on Tuesday his country's balance of payments crisis was over, a day before a team from the International Monetary Fund (IMF) is due to arrive to discuss a potential aid package.

Pakistan's finance minister said on Tuesday his country's balance of payments crisis was over, a day before a team from the International Monetary Fund (IMF) is due to arrive to discuss a potential aid package. Asad Umar said a combined $6 billion of Saudi money and promised funds from China would cover a projected $12 billion shortfall in foreign currency to service Pakistan's debt. "So, Pakistan’s immediate balance of payment crises is over. That I can tell you categorically that now we don’t have anymore a balance of payment crises," he told a news briefing, without mentioning the IMF. The discussion on Pakistan's multibillion-dollar bailout application would begin on Wednesday, PTI had reported. Last month, Pakistan Finance Minister Asad Umar had made a formal request for financial assistance from the IMF. "We expect those discussions to begin on November the 7th. An IMF staff mission will go to Islamabad and initiate discussions with the authorities," IMF Director of Communications Gerry Rice was quoted as saying by PTI. "The objectives of that program is to help stabilise the Pakistan economy, put in place the preconditions for sustained inclusive growth," Rice said, adding that the modalities of that would be announced once the IMF and Pakistan have reached a staff-level agreement. Once it is reached, Rice elaborated that they would go forward to IMF Board for the formal approval of the program. (With inputs from news agencies)

On eve of IMF talks, Pakistan's finance minister says balance of payments crisis over

The discussion on Pakistan's multibillion-dollar bailout application would begin on Wednesday, the International Monetary Fund has said.

Last month, Pakistan Finance Minister Asad Umar had made a formal request for financial assistance from the IMF.

"We expect those discussions to begin on November the 7th. An IMF staff mission will go to Islamabad and initiate discussions with the authorities," IMF Director of Communications Gerry Rice told reporters.

"The objectives of that program is to help stabilise the Pakistan economy, put in place the preconditions for sustained inclusive growth," Rice said, adding that the modalities of that would be announced once the IMF and Pakistan have reached a staff-level agreement.

Once it is reached, Rice elaborated that they would go forward to IMF Board for the formal approval of the program.

The discussion on Pakistan's multibillion-dollar bailout application would begin on Wednesday, the International Monetary Fund has said. Last month, Pakistan Finance Minister Asad Umar had made a formal request for financial assistance from the IMF.

The discussion on Pakistan's multibillion-dollar bailout application would begin on Wednesday, the International Monetary Fund has said. Last month, Pakistan Finance Minister Asad Umar had made a formal request for financial assistance from the IMF. "We expect those discussions to begin on November the 7th. An IMF staff mission will go to Islamabad and initiate discussions with the authorities," IMF Director of Communications Gerry Rice told reporters. "The objectives of that program is to help stabilise the Pakistan economy, put in place the preconditions for sustained inclusive growth," Rice said, adding that the modalities of that would be announced once the IMF and Pakistan have reached a staff-level agreement. Once it is reached, Rice elaborated that they would go forward to IMF Board for the formal approval of the program.

Discussion on Pakistan's bailout application to begin on Wednesday: IMF

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