Pakistan is bracing for a crucial Economic Evaluation as the IMF Mission arrives in Islamabad to assess the nation's Financial standing with talks scheduled from March 14 to 18th.

Pakistan: IMF mission to arrive in Islamabad for economic review

Recent attacks on vessels in the Red Sea region and a severe drought at the Panama Canal have disrupted global trade, causing significant slowdowns and redirections in maritime traffic, according to the IMF.

These disruptions have led to longer delivery times and increased shipping costs, affecting companies worldwide.

According to data from the IMF's PortWatch platform, trade volume through critical shipping lanes has been notably impacted, posing challenges to supply chains and economic activities.

The attacks on vessels in the Red Sea area have affected traffic through the Suez Canal, a crucial maritime route linking Asia and Europe.

With about 15 per cent of global maritime trade typically passing through this route, the disruptions have forced several shipping companies to divert their vessels around the Cape of Good Hope, resulting in extended delivery times by an average of 10 days or more.

This redirection has particularly hurt companies with limited inventories, exacerbating supply chain challenges.

Simultaneously, the Panama Canal has faced challenges due to a severe drought, prompting authorities to impose restrictions that have significantly reduced daily ship crossings since October last year.

This slowdown in maritime trade through another vital chokepoint, responsible for about 5 per cent of global maritime trade, has further compounded the disruptions in global trade routes.

These developments have caused concerns over prolonged supply chain disruptions and inflationary pressures, as shipping costs surge amidst longer transit times.

Data from the IMF's PortWatch platform reveals major shifts in trade volume across critical shipping lanes.

The volume of trade passing through the Suez Canal witnessed a staggering 50 per cent year-over-year decline in the first two months of the year, while trade transiting around the Cape of Good Hope surged by an estimated 74 percent above last year's levels.

Additionally, transit trade volume through the Panama Canal experienced a nearly 32 per cent drop compared to the previous year, indicating the scale of disruption faced by global trade routes.

The impact of these disruptions extends beyond delays in delivery times and increased shipping costs.

The decline in port calls to key regions, such as sub-Saharan Africa, the European Union, and the Middle East, reflects the transitory effects of longer shipping times.

This, coupled with potential delays in recording imports and exports due to rerouted shipments, complicates efforts to gauge the true momentum of global trade and economic activity.

Such challenges may lead to distortions in official statistics on recorded imports and exports, affecting assessments of economic performance and fiscal revenues for affected countries.

Recent attacks on vessels in the Red Sea region and a severe drought at the Panama Canal have disrupted global trade, causing significant slowdowns and redirections in maritime traffic, according to the IMF.

Recent attacks on vessels in the Red Sea region and a severe drought at the Panama Canal have disrupted global trade, causing significant slowdowns and redirections in maritime traffic, according to the IMF. These disruptions have led to longer delivery times and increased shipping costs, affecting companies worldwide. According to data from the IMF's PortWatch platform, trade volume through critical shipping lanes has been notably impacted, posing challenges to supply chains and economic activities. The attacks on vessels in the Red Sea area have affected traffic through the Suez Canal, a crucial maritime route linking Asia and Europe. With about 15 per cent of global maritime trade typically passing through this route, the disruptions have forced several shipping companies to divert their vessels around the Cape of Good Hope, resulting in extended delivery times by an average of 10 days or more. This redirection has particularly hurt companies with limited inventories, exacerbating supply chain challenges. Simultaneously, the Panama Canal has faced challenges due to a severe drought, prompting authorities to impose restrictions that have significantly reduced daily ship crossings since October last year. This slowdown in maritime trade through another vital chokepoint, responsible for about 5 per cent of global maritime trade, has further compounded the disruptions in global trade routes. These developments have caused concerns over prolonged supply chain disruptions and inflationary pressures, as shipping costs surge amidst longer transit times. Data from the IMF's PortWatch platform reveals major shifts in trade volume across critical shipping lanes. The volume of trade passing through the Suez Canal witnessed a staggering 50 per cent year-over-year decline in the first two months of the year, while trade transiting around the Cape of Good Hope surged by an estimated 74 percent above last year's levels. Additionally, transit trade volume through the Panama Canal experienced a nearly 32 per cent drop compared to the previous year, indicating the scale of disruption faced by global trade routes. The impact of these disruptions extends beyond delays in delivery times and increased shipping costs. The decline in port calls to key regions, such as sub-Saharan Africa, the European Union, and the Middle East, reflects the transitory effects of longer shipping times. This, coupled with potential delays in recording imports and exports due to rerouted shipments, complicates efforts to gauge the true momentum of global trade and economic activity. Such challenges may lead to distortions in official statistics on recorded imports and exports, affecting assessments of economic performance and fiscal revenues for affected countries.

Global trade disrupted by Red Sea attacks and Panama Canal drought: IMF

Egyptians are facing a significant economic challenge as inflation spiked to a record 35.7% in February. This comes ahead of Ramadan, a time when food purchases typically increase. Data shows a record monthly inflation rate of 11.4%. Food and beverage costs are a major driver of this surge, with annual increases exceeding 50%.

Egypt's inflation surges ahead of Ramadan

In a big boost to Egypt's economic recovery, the country has secured an expanded $8 billion deal with the International Monetary Fund. The deal comes hours after the central bank liberalised its currency and delivered a six percent rate hike in a push to stabilise the economy.

Egypt secures expanded $8 billion deal with the IMF

To address its severe economic challenges, Egypt has inked an expansive $8 billion loan agreement with the International Monetary Fund (IMF). <o:p></o:p>

The deal marks a more than doubling of the existing rescue program, following extensive efforts, including a substantial devaluation and a noteworthy interest-rate hike, reflecting Egypt's efforts&nbsp;to tackle its worst foreign-currency crunch in decades.<o:p></o:p>

The $3 billion, 46-month Extended Fund Facility that was first negotiated with the IMF in December 2022 is being expanded by this agreement. <o:p></o:p>

This program faced delays as Egypt temporarily reverted to a tightly managed exchange rate system and encountered challenges in divesting state assets and bolstering private sector roles. <o:p></o:p>

The latest deal is a vital step towards Egypt's economic recovery, addressing the fallout from the war in Ukraine and subsequent investor pull-out, which exposed the nation's financial vulnerabilities.<o:p></o:p>

To complement the IMF deal, Egypt is also seeking an additional loan from the IMF's Resilience and Sustainability Facility, designed to promote climate transition financing. <o:p></o:p>

Prime Minister Mostafa Madbouly revealed the anticipated amount for this separate loan as $1.2 billion. <o:p></o:p>

A Reuters report cited Ivana Vladkova Hollar, the IMF's Egypt mission chief, who emphasised the sustainable move towards a unified market-determined exchange rate, stating, "under this framework, you would observe not just devaluations, but you would observe two-way movements in the exchange rate as it moves in response to economic conditions." <o:p></o:p>

The IMF highlighted policy discussions centred on commitments to a flexible exchange rate, fiscal consolidation, and reforms to eliminate privileges for state-owned enterprises.<o:p></o:p>

Egypt's economic policies, including major projects like a new capital city east of Cairo, have been a focal point under President Abdel Fattah al-Sisi. <o:p></o:p>

These projects, aimed at job creation and economic growth, have faced scrutiny amid Egypt's surging debt burden. <o:p></o:p>

The recent deal, less than two weeks after Egypt's agreement with the Emirati sovereign wealth fund ADQ, adds momentum to the nation's economic recovery efforts. <o:p></o:p>

While the devaluation may lead to short-term inflation concerns, Egypt's officials, including President Abdel-Fattah El-Sisi, believe that these reforms will attract foreign investors and ultimately bring an end to the country's worst economic crisis in decades. <o:p></o:p>

(With inputs from Reuters and Bloomberg)<o:p></o:p>

To address its severe economic challenges, Egypt has inked an expansive $8 billion loan agreement with the International Monetary Fund (IMF). The deal marks a more than doubling of the existing rescue program, following extensive efforts, including a substantial devaluation and a noteworthy interest-rate hike, reflecting Egypt's efforts to tackle its worst foreign-currency crunch in decades.

To address its severe economic challenges, Egypt has inked an expansive $8 billion loan agreement with the International Monetary Fund (IMF). The deal marks a more than doubling of the existing rescue program, following extensive efforts, including a substantial devaluation and a noteworthy interest-rate hike, reflecting Egypt's efforts to tackle its worst foreign-currency crunch in decades. The $3 billion, 46-month Extended Fund Facility that was first negotiated with the IMF in December 2022 is being expanded by this agreement. This program faced delays as Egypt temporarily reverted to a tightly managed exchange rate system and encountered challenges in divesting state assets and bolstering private sector roles. The latest deal is a vital step towards Egypt's economic recovery, addressing the fallout from the war in Ukraine and subsequent investor pull-out, which exposed the nation's financial vulnerabilities. To complement the IMF deal, Egypt is also seeking an additional loan from the IMF's Resilience and Sustainability Facility, designed to promote climate transition financing. Prime Minister Mostafa Madbouly revealed the anticipated amount for this separate loan as $1.2 billion. A Reuters report cited Ivana Vladkova Hollar, the IMF's Egypt mission chief, who emphasised the sustainable move towards a unified market-determined exchange rate, stating, "under this framework, you would observe not just devaluations, but you would observe two-way movements in the exchange rate as it moves in response to economic conditions." The IMF highlighted policy discussions centred on commitments to a flexible exchange rate, fiscal consolidation, and reforms to eliminate privileges for state-owned enterprises. Egypt's economic policies, including major projects like a new capital city east of Cairo, have been a focal point under President Abdel Fattah al-Sisi. These projects, aimed at job creation and economic growth, have faced scrutiny amid Egypt's surging debt burden. The recent deal, less than two weeks after Egypt's agreement with the Emirati sovereign wealth fund ADQ, adds momentum to the nation's economic recovery efforts. While the devaluation may lead to short-term inflation concerns, Egypt's officials, including President Abdel-Fattah El-Sisi, believe that these reforms will attract foreign investors and ultimately bring an end to the country's worst economic crisis in decades. (With inputs from Reuters and Bloomberg)

Egypt boosts economic resilience: Inks $8 billion IMF deal

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. <o:p></o:p>

According to Bloomberg, Sharif's directive to fast-track talks for a new loan comes amid mounting financial challenges faced by Pakistan, including heavy external debt obligations and the need for immediate financial support.<o:p></o:p>

"Sharif's return as Prime Minister Increases Pakistan’s chances of securing a new IMF aid package," remarked Bloomberg Economics, highlighting the optimism surrounding Sharif's leadership and his administration's track record in implementing reforms. <o:p></o:p>

The urgency to secure fresh funds stems from Pakistan's looming external debt payments, which amount to $25 billion in the upcoming fiscal year, posing a burden on the nation's foreign exchange reserves.<o:p></o:p>

While Pakistan had initially planned to seek a new loan of at least $6 billion from the IMF, the final decision on the loan amount remains pending. <o:p></o:p>

Sharif's administration is keen on securing financial assistance to navigate the country through its fiscal challenges and implement necessary reforms aligned with IMF targets.<o:p></o:p>

Aisha Ghaus Pasha, a former junior finance minister and economist, &nbsp;said that securing aid would provide the country with essential fiscal space to undertake crucial reforms. <o:p></o:p>

Pasha underscored the inevitability of tough reforms as part of any IMF program, highlighting the need for Pakistan to demonstrate a strong commitment to fiscal discipline and economic stability during negotiation.<o:p></o:p>

Sharif has yet to appoint a new finance minister to lead the IMF negotiations.<o:p></o:p>

Habib Bank Ltd President Muhammad Aurangzeb, considered a potential candidate for the finance minister post, attended a recent meeting chaired by Sharif to discuss the IMF talks, indicating ongoing deliberations within the government regarding key appointments.<o:p></o:p>

Securing a new IMF aid package is not only crucial for Pakistan's economic stability but also for maintaining support from creditor nations such as Saudi Arabia and the United Arab Emirates. <o:p></o:p>

Additionally, a successful negotiation with the IMF could strengthen investor confidence in Pakistan's dollar bonds, potentially stabilising financial markets and fostering economic growth.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April.

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. According to Bloomberg, Sharif's directive to fast-track talks for a new loan comes amid mounting financial challenges faced by Pakistan, including heavy external debt obligations and the need for immediate financial support. "Sharif's return as Prime Minister Increases Pakistan’s chances of securing a new IMF aid package," remarked Bloomberg Economics, highlighting the optimism surrounding Sharif's leadership and his administration's track record in implementing reforms. The urgency to secure fresh funds stems from Pakistan's looming external debt payments, which amount to $25 billion in the upcoming fiscal year, posing a burden on the nation's foreign exchange reserves. While Pakistan had initially planned to seek a new loan of at least $6 billion from the IMF, the final decision on the loan amount remains pending. Sharif's administration is keen on securing financial assistance to navigate the country through its fiscal challenges and implement necessary reforms aligned with IMF targets. Aisha Ghaus Pasha, a former junior finance minister and economist, said that securing aid would provide the country with essential fiscal space to undertake crucial reforms. Pasha underscored the inevitability of tough reforms as part of any IMF program, highlighting the need for Pakistan to demonstrate a strong commitment to fiscal discipline and economic stability during negotiation. Sharif has yet to appoint a new finance minister to lead the IMF negotiations. Habib Bank Ltd President Muhammad Aurangzeb, considered a potential candidate for the finance minister post, attended a recent meeting chaired by Sharif to discuss the IMF talks, indicating ongoing deliberations within the government regarding key appointments. Securing a new IMF aid package is not only crucial for Pakistan's economic stability but also for maintaining support from creditor nations such as Saudi Arabia and the United Arab Emirates. Additionally, a successful negotiation with the IMF could strengthen investor confidence in Pakistan's dollar bonds, potentially stabilising financial markets and fostering economic growth. (With inputs from Bloomberg)

Pakistan's prime minister initiates talks with IMF for crucial loan renewal

The government of Pakistan has been advised by the International Monetary Fund (IMF) to impose an 18 per cent General Sales Tax (GST) on food, medicine, petroleum items, and stationery, reported ARY news.

The IMF experts in a report to Islamabad have suggested Pakistan's newly elected government put an end to sales tax relaxation.

Following its December 2023 visit to Pakistan, the IMF team sent out a report in February 2024 that included several suggestions ahead of the FY2024–2025 budget.&nbsp;

The IMF has suggested placing a number of goods, such as unprocessed food, stationery, medicine, POL products, and others, under the standard 18 per cent GST rate.

It assessed that rationalising GST rates could generate 1.3 per cent of Gross Domestic Product (GDP) revenue which equals Rs 1,300 billion in the national exchequer.

The IMF has overall demanded the removal of all the distortionary tax policy changes related to compliance, which includes the abolition of minimum taxes and additional taxes, as well as the abolition of the Ninth and Tenth Schedules.

In February, there were reports that Pakistan would seek a loan package from the International Monetary Fund in addition to $1.5 billion in climate finance.

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/meet-pakistans-pm-shehbaz-sharif-militarys-new-favourite-to-run-crisis-ridden-nation-696331">Meet Pakistan PM Shehbaz Sharif, military's new favourite to run crisis-ridden nation</a>

<h2>Shehbaz Sharif aims to join G20 after being 'elected' Pakistan PM</h2>

Shehbaz Sharif, leader and brother of the three-time ex-PM Nawaz Sharif, won enough votes in the country’s National Assembly to retake the premiership.&nbsp;

He delivered the victory speech on Sunday (Mar 3) and said that he would conduct what he called a “deep surgery” and bring changes to the system to get the cash-strapped country out of the economic crisis and secure membership in the Group of 20 (G20) countries by 2030.

Shehbaz spoke about the alarming debt crisis that Pakistan is facing and noted how even the expenditures of the National Assembly were being paid by borrowed money.&nbsp;

“But if we decide to do a deep surgery and bring changes in the system, basic reform…I have no doubt…we can either get rid of a life of debt or we move forward with heads down in shame,” said the PM-designate.&nbsp;

Pakistan has long struggled with a heavy debt load. Recently,&nbsp;it secured another bailout by the International Monetary Fund (IMF) which was Pakistan’s 23rd since it gained independence in 1947.&nbsp;

The inflation rate in the country reached 29.7 per cent in December, and in 2023, the Pakistani rupee was Asia’s worst-performing currency.

(With inputs from agencies)&nbsp;

The government of Pakistan has been advised by the International Monetary Fund (IMF) to impose an 18 per cent General Sales Tax (GST) on food, medicine, petroleum items, and stationery, reported ARY news.

The government of Pakistan has been advised by the International Monetary Fund (IMF) to impose an 18 per cent General Sales Tax (GST) on food, medicine, petroleum items, and stationery, reported ARY news. The IMF experts in a report to Islamabad have suggested Pakistan's newly elected government put an end to sales tax relaxation. Following its December 2023 visit to Pakistan, the IMF team sent out a report in February 2024 that included several suggestions ahead of the FY2024–2025 budget. The IMF has suggested placing a number of goods, such as unprocessed food, stationery, medicine, POL products, and others, under the standard 18 per cent GST rate. It assessed that rationalising GST rates could generate 1.3 per cent of Gross Domestic Product (GDP) revenue which equals Rs 1,300 billion in the national exchequer. The IMF has overall demanded the removal of all the distortionary tax policy changes related to compliance, which includes the abolition of minimum taxes and additional taxes, as well as the abolition of the Ninth and Tenth Schedules. In February, there were reports that Pakistan would seek a loan package from the International Monetary Fund in addition to $1.5 billion in climate finance. Also read: Meet Pakistan PM Shehbaz Sharif, military's new favourite to run crisis-ridden nation Shehbaz Sharif aims to join G20 after being 'elected' Pakistan PM Shehbaz Sharif, leader and brother of the three-time ex-PM Nawaz Sharif, won enough votes in the country’s National Assembly to retake the premiership. He delivered the victory speech on Sunday (Mar 3) and said that he would conduct what he called a “deep surgery” and bring changes to the system to get the cash-strapped country out of the economic crisis and secure membership in the Group of 20 (G20) countries by 2030. Shehbaz spoke about the alarming debt crisis that Pakistan is facing and noted how even the expenditures of the National Assembly were being paid by borrowed money. “But if we decide to do a deep surgery and bring changes in the system, basic reform…I have no doubt…we can either get rid of a life of debt or we move forward with heads down in shame,” said the PM-designate. Pakistan has long struggled with a heavy debt load. Recently, it secured another bailout by the International Monetary Fund (IMF) which was Pakistan’s 23rd since it gained independence in 1947. The inflation rate in the country reached 29.7 per cent in December, and in 2023, the Pakistani rupee was Asia’s worst-performing currency. (With inputs from agencies)

IMF suggests Pakistan impose 18 per cent GST on food, medicines, petroleum: Report

Pakistan Tehreek-e-Insaf (PTI) founder and former Prime Minister, Imran Khan, confirmed on Friday that he had sent a letter to the International Monetary Fund (IMF) demanding that it hold an audit of the election results before approving any new loan for Islamabad.

Pakistan: Jailed Imran Khan pens letter to IMF on eve of National Assembly session

Pakistan: Jailed Imran Khan writes to IMF, seeks election audit before new loan

The Pakistan Tehreek-e-Insaf (PTI) party has penned a letter to the International Monetary Fund (IMF) to consider the country's political stability in any further bailout talks, the news agencies Reuters reported on Wednesday (Feb 28) citing two people familiar with the matter.&nbsp;

The party of Pakistan's jailed former prime minister Imran Khan sent a letter to the IMF detailing its position. The sources noted that more details would be made public in due course.&nbsp;

The party urged that the global lender make sure that its guidelines regarding "good governance as well as conditionalities" were applied before granting a loan.&nbsp;

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PTI also asked for an election audit of "at least 30 per cent of the national and provincial assemblies' seats". It said that it could be accomplished in "merely two weeks".&nbsp;

As quoted by the news agency, Sohail Ahmed of Karachi-based Topline securities said the letter was unlikely to have a major market impact. He said, "The IMF will do its own due diligence."&nbsp;

Last week, Khan's aides said they would urge the lender to call for an independent audit of Pakistan's February 8 elections before engaging in further talks with Islamabad. But IMF declined to comment.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-ex-pm-imran-khan-wife-bushra-bibi-indicted-in-al-qadir-trust-case-694342">Pakistan ex-PM Imran Khan, wife Bushra Bibi indicted in Al-Qadir Trust case</a>&nbsp;

Watch:&nbsp;Can Arif Alvi grant pardon to Imran Khan?

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Jailed PTI founder chairman's counsel Barrister Ali Zafar told reporters at the Adiala Jail last Thursday that "Imran Khan will issue a letter to the IMF today. The charter of IMF, EU, and other organizations stipulates that they can function or provide loans to a country only if there’s good governance."&nbsp;

Pakistan's cash-strapped economy is struggling to stabilise after securing a $3 billion standby arrangement from the IMF last summer, with record inflation, rupee devaluation and shrinking foreign reserves.&nbsp;

Local Geo News TV reported on Wednesday citing unnamed sources in the finance ministry that&nbsp;China has rolled over a $2 billion loan to Pakistan.&nbsp;&nbsp;

The $2 billion loan was due in March and has been extended for one year, it said.&nbsp;

(With inputs from agencies)&nbsp;

The Pakistan Tehreek-e-Insaf (PTI) party has penned a letter to the International Monetary Fund (IMF) to consider the country's political stability in any further bailout talks, the news agencies Reuters reported on Wednesday (Feb 28) citing two people familiar with the matter.

The Pakistan Tehreek-e-Insaf (PTI) party has penned a letter to the International Monetary Fund (IMF) to consider the country's political stability in any further bailout talks, the news agencies Reuters reported on Wednesday (Feb 28) citing two people familiar with the matter. The party of Pakistan's jailed former prime minister Imran Khan sent a letter to the IMF detailing its position. The sources noted that more details would be made public in due course. The party urged that the global lender make sure that its guidelines regarding "good governance as well as conditionalities" were applied before granting a loan. Also read: Air hostess of Pakistan International Airlines goes 'missing' from Canada PTI also asked for an election audit of "at least 30 per cent of the national and provincial assemblies' seats". It said that it could be accomplished in "merely two weeks". As quoted by the news agency, Sohail Ahmed of Karachi-based Topline securities said the letter was unlikely to have a major market impact. He said, "The IMF will do its own due diligence." Last week, Khan's aides said they would urge the lender to call for an independent audit of Pakistan's February 8 elections before engaging in further talks with Islamabad. But IMF declined to comment. Also read: Pakistan ex-PM Imran Khan, wife Bushra Bibi indicted in Al-Qadir Trust case Watch: Can Arif Alvi grant pardon to Imran Khan? × Jailed PTI founder chairman's counsel Barrister Ali Zafar told reporters at the Adiala Jail last Thursday that "Imran Khan will issue a letter to the IMF today. The charter of IMF, EU, and other organizations stipulates that they can function or provide loans to a country only if there’s good governance." Pakistan's cash-strapped economy is struggling to stabilise after securing a $3 billion standby arrangement from the IMF last summer, with record inflation, rupee devaluation and shrinking foreign reserves. Local Geo News TV reported on Wednesday citing unnamed sources in the finance ministry that China has rolled over a $2 billion loan to Pakistan. The $2 billion loan was due in March and has been extended for one year, it said. (With inputs from agencies)

Pakistan Tehreek-e-Insaf party asks IMF to consider nation’s instability in further bailout talks

Jailed former Pakistan prime minister Imran Khan said on Friday (Feb 23) that he has written a letter to International Monetary Fund (IMF) urging the world body to not approve new loan to Pakistan before an audit of the recently concluded elections, said reports in Pakistani media.

"The letter has been written to the IMF and will be dispatched today. If the country gets a loan in such a situation, then who will return it?," said Khan during hearing of GBP 190 million corruption case against him in Adiala jail, as per media reports.

The News International reports&nbsp;Khan saying&nbsp;that additional loan would be burdensome for the South Asian nation and would increase poverty.

A senator of Khan's Pakistan Tehreek-e-Insaf (PTI) had said just a day ago that Khan would write such a letter to IMF urging it for an audit of the February 8 elections.

Watch | Shehbaz Sharif set to return as Pak PM | No photograph of living things in Afghanistan

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The IMF, meanwhile, has indicated that it was ready to work with the new government in Pakistan.

IMF spokesperson Julie Kozack said that the global body was ready to work "on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens."

Also Read | <a href="https://www.wionews.com/south-asia/new-pak-government-likely-by-march-2-presidential-poll-before-march-9-report-693357">New Pak government likely by March 2; presidential poll before March 9: Report</a>

Imran Khan's party has alleged that the elections were rigged. When the counting of votes began, the PTI registered an impressive performance as candidates affiliated to it won 95 of 265 seats in Pakistan parliament. However, former Pakistan PM Nawaz Sharif's Pakistan Muslim League (Nawaz) has emerged as the largest party. PMLN now has 108 lawmakers in the parliament.

PTI claims that Election Commission of Pakistan (ECP) officials engaged in widespread rigging of poll and declared defeat of PTI-linked candidates on dozens of seats in spite of their victory. The ECP has denied these allegations.&nbsp;

PMLN has now joined hands with Bilawal Bhutto-Zardari's Pakistan People's Party (PPP) and is in a process to form the government.&nbsp;

(With inputs from agencies)

Jailed former Pakistan prime minister Imran Khan said on Friday (Feb 23) that he has written a letter to International Monetary Fund (IMF) urging the world body to not approve new loan to Pakistan before an audit of the recently concluded elections, said reports in Pakistani media.

Jailed former Pakistan prime minister Imran Khan said on Friday (Feb 23) that he has written a letter to International Monetary Fund (IMF) urging the world body to not approve new loan to Pakistan before an audit of the recently concluded elections, said reports in Pakistani media. "The letter has been written to the IMF and will be dispatched today. If the country gets a loan in such a situation, then who will return it?," said Khan during hearing of GBP 190 million corruption case against him in Adiala jail, as per media reports. The News International reports Khan saying that additional loan would be burdensome for the South Asian nation and would increase poverty. A senator of Khan's Pakistan Tehreek-e-Insaf (PTI) had said just a day ago that Khan would write such a letter to IMF urging it for an audit of the February 8 elections. Watch | Shehbaz Sharif set to return as Pak PM | No photograph of living things in Afghanistan × The IMF, meanwhile, has indicated that it was ready to work with the new government in Pakistan. IMF spokesperson Julie Kozack said that the global body was ready to work "on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens." Also Read | New Pak government likely by March 2; presidential poll before March 9: Report Imran Khan's party has alleged that the elections were rigged. When the counting of votes began, the PTI registered an impressive performance as candidates affiliated to it won 95 of 265 seats in Pakistan parliament. However, former Pakistan PM Nawaz Sharif's Pakistan Muslim League (Nawaz) has emerged as the largest party. PMLN now has 108 lawmakers in the parliament. PTI claims that Election Commission of Pakistan (ECP) officials engaged in widespread rigging of poll and declared defeat of PTI-linked candidates on dozens of seats in spite of their victory. The ECP has denied these allegations. PMLN has now joined hands with Bilawal Bhutto-Zardari's Pakistan People's Party (PPP) and is in a process to form the government. (With inputs from agencies)

Pakistan ex-PM Imran Khan asks IMF to hold election audit before new loan: Reports

Jailed former prime minister Imran Khan on Thursday announced that he will write to the IMF, demanding the global lender to stop its support to cash-strapped Pakistan until it seeks an "audit" of the elections mired in controversies, including vote rigging.

Pakistani Imran Khan urges IMF to call election audit, his lawyer says

Pakistan ex-PM Imran Khan urges IMF to call election audit, his lawyer says

Pakistan is reportedly planning to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to assist the incoming government in repaying billions of dollars in debt due this year. According to Bloomberg News, a Pakistani official revealed this development, highlighting the country's efforts to manage its financial obligations.

The country aims to negotiate an Extended Fund Facility (EFF) with the IMF, with talks expected to commence in March or April.&nbsp;

Last summer, Pakistan narrowly avoided defaulting on its financial obligations, owing&nbsp;to a short-term bailout package from the IMF. However, as the programme is set to expire next month, the incoming government must negotiate a comprehensive, long-term arrangement to ensure the stability of the $350-billion economy.

<a href="https://www.wionews.com/south-asia/ex-pakistani-bureaucrat-retracts-poll-rigging-allegations-cites-lucrative-positions-promised-by-pti-693006">Also read |&nbsp;Ex-Pakistani bureaucrat retracts poll rigging allegations, cites 'lucrative positions' promised by PTI</a>

<h2>IMF's conditions and prior measures</h2>

In preparation for the bailout, Pakistan had to implement various measures as per the IMF's requirements. These included revising its budget, raising its benchmark interest rate, and implementing hikes in electricity and natural gas prices. Such measures were necessary to meet the IMF's conditions and stabilise the country's financial situation.

<a href="https://www.wionews.com/south-asia/pakistan-elections-2024-can-nawaz-sharif-put-pakistans-economy-back-on-track-687444">Also read |&nbsp;Data lab | Pak economy has been in the red for decades. Can Nawaz Sharif engineer a turnaround?</a>

Neither the IMF nor Pakistan's caretaker finance minister provided an immediate response to Reuters' request for comment on the Bloomberg report. However, ratings agency Fitch emphasised the critical importance of securing financing from multilateral and bilateral partners for Pakistan's external position. Failure to secure a new deal could exacerbate external liquidity stress and increase the risk of default.

Also watch |&nbsp;Pakistan: PPP Chairman announces coalition government with PML-N

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pakistan-ppp-chairman-announces-coalition-government-with-pml-n-692228/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Securing a new IMF loan is imperative for Pakistan's financial stability and credit profile. The next government faces the urgent task of negotiating a comprehensive, long-term arrangement with the IMF to address the country's debt repayment needs and ensure economic stability in the face of external challenges.

(With inputs from agencies)

Pakistan is reportedly planning to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to assist the incoming government in repaying billions of dollars in debt due this year.

Pakistan is reportedly planning to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to assist the incoming government in repaying billions of dollars in debt due this year. According to Bloomberg News, a Pakistani official revealed this development, highlighting the country's efforts to manage its financial obligations. The country aims to negotiate an Extended Fund Facility (EFF) with the IMF, with talks expected to commence in March or April. Last summer, Pakistan narrowly avoided defaulting on its financial obligations, owing to a short-term bailout package from the IMF. However, as the programme is set to expire next month, the incoming government must negotiate a comprehensive, long-term arrangement to ensure the stability of the $350-billion economy. Also read | Ex-Pakistani bureaucrat retracts poll rigging allegations, cites 'lucrative positions' promised by PTI IMF's conditions and prior measures In preparation for the bailout, Pakistan had to implement various measures as per the IMF's requirements. These included revising its budget, raising its benchmark interest rate, and implementing hikes in electricity and natural gas prices. Such measures were necessary to meet the IMF's conditions and stabilise the country's financial situation. Also read | Data lab | Pak economy has been in the red for decades. Can Nawaz Sharif engineer a turnaround? Neither the IMF nor Pakistan's caretaker finance minister provided an immediate response to Reuters' request for comment on the Bloomberg report. However, ratings agency Fitch emphasised the critical importance of securing financing from multilateral and bilateral partners for Pakistan's external position. Failure to secure a new deal could exacerbate external liquidity stress and increase the risk of default. Also watch | Pakistan: PPP Chairman announces coalition government with PML-N Securing a new IMF loan is imperative for Pakistan's financial stability and credit profile. The next government faces the urgent task of negotiating a comprehensive, long-term arrangement with the IMF to address the country's debt repayment needs and ensure economic stability in the face of external challenges. (With inputs from agencies)

Pakistan eyes $6bn IMF loan programme to tackle debt burden: Report

Pakistan's political landscape has shifted, with Shehbaz Sharif and his coalition government is all set to take charge. But the celebrations may be short-lived, as daunting economic challenges loom large.

Rescuing the economy will be the biggest challenge for new govt

The federal cabinet approves a 67% increase in the natural gas tariff. The decision came into effect from Feb 1, apparently to meet the revenue requirement of the gas utilities targeted for the current year. The question remains does the new government have a plan to bring the economy back on track. To know more watch this interview Foreign Affairs expert, Adnan Qaiser.

Pakistan: Economic headache for new government

The federal cabinet approves a 67% increase in the natural gas tariff. The decision came into effect from Feb 1, apparently to meet the revenue requirement of the gas utilities targeted for the current year. The question remains does the new government have a plan to bring the economy back on track.

How bad is Pakistan's debt crisis and can the IMF save it?

Russia's war economy faces significant challenges in the coming months, according to Kristalina Georgieva, the managing director of the International Monetary Fund (IMF).<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Georgieva highlighted the difficulties arising from an exodus of people and technology shortages, despite the apparent boost in economic growth driven by high military spending.<o:p></o:p>

Speaking to CNBC, Georgieva expressed concerns about Russia's economic trajectory, emphasizing that the current growth relies heavily on state-funded arms production. <o:p></o:p>

She noted that while military production is on the rise, consumption levels are declining, reminiscent of the economic dynamics of the Soviet Union. <o:p></o:p>

Georgieva's remarks underscore the complexities of Russia's economic landscape, where apparent growth masks underlying challenges.<o:p></o:p>

Russia's economy rebounded strongly in 2023, registering a growth of 3.6 per cent following a contraction of 1.2 per cent in the previous year. <o:p></o:p>

However, Russia-based economists have raised concerns about the quality of this growth, highlighting the limited benefits to the population from increased military spending. <o:p></o:p>

Georgieva cautioned that Russia's economic outlook remains precarious due to significant factors such as the outflow of people and reduced access to technology resulting from international sanctions.<o:p></o:p>

Despite the IMF's forecast of 2.6 per cent GDP growth for Russia in the current year, Georgieva stressed that underlying issues pose substantial risks to sustained economic prosperity. <o:p></o:p>

These challenges paint a complex picture of Russia's economic landscape, characterized by short-term growth prospects and long-term uncertainties.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Russia's war economy faces significant challenges in the coming months, according to Kristalina Georgieva, the managing director of the International Monetary Fund (IMF).

Russia's war economy faces significant challenges in the coming months, according to Kristalina Georgieva, the managing director of the International Monetary Fund (IMF). This is based on a Reuters report. Georgieva highlighted the difficulties arising from an exodus of people and technology shortages, despite the apparent boost in economic growth driven by high military spending. Speaking to CNBC, Georgieva expressed concerns about Russia's economic trajectory, emphasizing that the current growth relies heavily on state-funded arms production. She noted that while military production is on the rise, consumption levels are declining, reminiscent of the economic dynamics of the Soviet Union. Georgieva's remarks underscore the complexities of Russia's economic landscape, where apparent growth masks underlying challenges. Russia's economy rebounded strongly in 2023, registering a growth of 3.6 per cent following a contraction of 1.2 per cent in the previous year. However, Russia-based economists have raised concerns about the quality of this growth, highlighting the limited benefits to the population from increased military spending. Georgieva cautioned that Russia's economic outlook remains precarious due to significant factors such as the outflow of people and reduced access to technology resulting from international sanctions. Despite the IMF's forecast of 2.6 per cent GDP growth for Russia in the current year, Georgieva stressed that underlying issues pose substantial risks to sustained economic prosperity. These challenges paint a complex picture of Russia's economic landscape, characterized by short-term growth prospects and long-term uncertainties. (With inputs from Reuters)

IMF's Georgieva warns of challenges ahead for Russia's war economy. Here are the details

The war ridden region of West Asia contends with a combination of oil production cuts and the lingering impact of the Israel Gaza War. Managing director of the International Monetary Fund issued warnings about the regions growth prospects emphasizing the need for reform in energy subsidies.

IMF: Global economy resilient despite West Asia challenges

In a recent address at the Arab Fiscal Forum in Dubai, International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted concerns over the sluggish growth of West Asia economies. <o:p></o:p>

According to Reuters, Georgieva pointed to factors such as oil production cuts and the Israel-Gaza conflict as major contributors to the region's economic challenges.<o:p></o:p>

Georgieva emphasised the resilience of the global economy amidst uncertainties but cautioned about the potential wider impact on regional economies due to continued conflict in Gaza.<o:p></o:p>

&nbsp;She stated, "Despite uncertainties, the global economy has been surprisingly resilient," underscoring the need for vigilance amid ongoing conflicts.<o:p></o:p>

The IMF's regional economic report for the West Asia and North Africa last month downgraded GDP growth forecasts to 2.9 per cent for the year, citing short-term oil production cuts and the conflict in Gaza as significant factors. <o:p></o:p>

This revision lagged below previous projections made in October, reflecting persistent challenges faced by economies in the region.<o:p></o:p>

Georgieva highlighted the adverse effects of the Israel-Gaza conflict on tourism revenues in neighbouring economies and the impact of Red Sea attacks on global freight costs. <o:p></o:p>

These challenges further exacerbate the recovery process for economies already grappling with previous shocks, she noted.<o:p></o:p>

The ongoing conflict in the region, particularly the attacks by Iran-aligned Houthis in Yemen targeting commercial vessels in the Red Sea, has disrupted global trade routes. <o:p></o:p>

Several major shippers have opted to divert traffic to the Cape of Good Hope, bypassing the Suez Canal, which could potentially impact Suez Canal revenues. <o:p></o:p>

Egypt's Finance Minister Mohamed Maait acknowledged the potential impact but expressed confidence in the region's resilience.<o:p></o:p>

Georgieva also highlighted the potential economic benefits of phasing out energy subsidies in West Asia. <o:p></o:p>

According to an upcoming IMF paper, eliminating these subsidies could result in savings of $336 billion, equivalent to the economies of Iraq and Libya combined. <o:p></o:p>

Georgieva underscored the importance of redirecting these resources towards social spending and addressing environmental concerns.<o:p></o:p>

The IMF's recommendations include the gradual unwinding of energy subsidies in the region, particularly for oil-exporting economies, with targeted support as an alternative. <o:p></o:p>

Additionally, Georgieva stressed the importance of investing in advanced technologies like Artificial Intelligence (AI) to drive economic growth and ensure competitiveness on a global scale.<o:p></o:p>

Countries in the Middle East, including the UAE and Saudi Arabia, have significantly ramped up investment in AI as part of broader strategies to diversify their income sources. <o:p></o:p>

However, Georgieva cautioned that countries lacking the necessary infrastructure and skilled workforce to embrace AI technology risk falling behind in the global economic landscape.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a recent address at the Arab Fiscal Forum in Dubai, International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted concerns over the sluggish growth of West Asia economies.

In a recent address at the Arab Fiscal Forum in Dubai, International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted concerns over the sluggish growth of West Asia economies. According to Reuters, Georgieva pointed to factors such as oil production cuts and the Israel-Gaza conflict as major contributors to the region's economic challenges. Georgieva emphasised the resilience of the global economy amidst uncertainties but cautioned about the potential wider impact on regional economies due to continued conflict in Gaza. She stated, "Despite uncertainties, the global economy has been surprisingly resilient," underscoring the need for vigilance amid ongoing conflicts. The IMF's regional economic report for the West Asia and North Africa last month downgraded GDP growth forecasts to 2.9 per cent for the year, citing short-term oil production cuts and the conflict in Gaza as significant factors. This revision lagged below previous projections made in October, reflecting persistent challenges faced by economies in the region. Georgieva highlighted the adverse effects of the Israel-Gaza conflict on tourism revenues in neighbouring economies and the impact of Red Sea attacks on global freight costs. These challenges further exacerbate the recovery process for economies already grappling with previous shocks, she noted. The ongoing conflict in the region, particularly the attacks by Iran-aligned Houthis in Yemen targeting commercial vessels in the Red Sea, has disrupted global trade routes. Several major shippers have opted to divert traffic to the Cape of Good Hope, bypassing the Suez Canal, which could potentially impact Suez Canal revenues. Egypt's Finance Minister Mohamed Maait acknowledged the potential impact but expressed confidence in the region's resilience. Georgieva also highlighted the potential economic benefits of phasing out energy subsidies in West Asia. According to an upcoming IMF paper, eliminating these subsidies could result in savings of $336 billion, equivalent to the economies of Iraq and Libya combined. Georgieva underscored the importance of redirecting these resources towards social spending and addressing environmental concerns. The IMF's recommendations include the gradual unwinding of energy subsidies in the region, particularly for oil-exporting economies, with targeted support as an alternative. Additionally, Georgieva stressed the importance of investing in advanced technologies like Artificial Intelligence (AI) to drive economic growth and ensure competitiveness on a global scale. Countries in the Middle East, including the UAE and Saudi Arabia, have significantly ramped up investment in AI as part of broader strategies to diversify their income sources. However, Georgieva cautioned that countries lacking the necessary infrastructure and skilled workforce to embrace AI technology risk falling behind in the global economic landscape. (With inputs from Reuters)

IMF warns of slower growth in West Asia in 2024 citing oil cuts, regional tensions

The war ridden region of West Asia contends with a combination of oil production cuts and the lingering impact of the Israel Gaza War. Managing director of the International Monetary Fund issued warnings about the regions growth prospects emphasizing the need for reform in energy subsidies. Watch to know more!

IMF warns of impact on regional growth from Gaza conflict

<o:p></o:p>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;

Tower Semiconductor proposes $8 bn chip plant in India: Report<o:p></o:p>

Tower Semiconductor, a leading Israeli chipmaker, has reportedly submitted a proposal to the Indian government for the establishment of an $8 billion chip manufacturing plant in the country.

<a href="https://www.wionews.com/business-economy/tower-semiconductor-proposes-8-bn-chip-plant-in-india-report-689376">Read more here</a> <o:p></o:p>

IMF warns of slower growth in West Asia in 2024 citing oil cuts, regional tensions<o:p></o:p>

In a recent address at the Arab Fiscal Forum in Dubai, International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted concerns over the sluggish growth of West Asia economies.

<a href="https://www.wionews.com/business-economy/imf-warns-of-slower-growth-in-west-asia-in-2024-citing-oil-cuts-regional-tensions-689382">Read more here </a><o:p></o:p>

US judge orders Elon Musk to testify in SEC's Twitter probe, deadline set for agreement<o:p></o:p>

A federal judge has mandated Elon Musk to testify once again in the US Securities and Exchange Commission's investigation into his $44 billion acquisition of Twitter, setting a deadline for both parties to finalise the details of the interview.

<a href="https://www.wionews.com/business-economy/us-judge-orders-elon-musk-to-testify-in-secs-twitter-probe-deadline-set-for-agreement-689401">Read more here </a><o:p></o:p>

Israel economy poised for recovery despite Moody's downgrade, says bank of Israel Governor<o:p></o:p>

Amidst the backdrop of Moody's recent downgrade of Israel's sovereign credit rating, Bank of Israel Governor Amir Yaron remains optimistic about the country's economic prospects.

<a href="https://www.wionews.com/business-economy/israel-economy-poised-for-recovery-despite-moodys-downgrade-says-bank-of-israel-governor-689496">Read more here </a><o:p></o:p>

Nissan shares plunge amid market concerns in China: Report<o:p></o:p>

Nissan Motor witnessed its sharpest stock decline in over two decades, plummeting by 12 per cent on Friday, following disappointing quarterly earnings and slashed car sales estimates, primarily attributed to fierce competition in the Chinese auto market.

<a href="https://www.wionews.com/business-economy/nissan-shares-plunge-amid-market-concerns-in-china-report-689508">Read more here </a><o:p></o:p>

Diamondback energy and Endeavor energy to merge, forming $50 billion oil giant<o:p></o:p>

In a new development, US shale oil rivals Diamondback Energy and Endeavor Energy Resources are on the verge of finalising a deal worth approximately $25 billion in cash and stock, as reported by Reuters.

<a href="https://www.wionews.com/business-economy/diamondback-energy-and-endeavor-energy-to-merge-forming-50-billion-oil-giant-689517">Read more here</a> <o:p></o:p>

EU agrees on revised fiscal rules to spur investments and debt reduction<o:p></o:p>

EU member states and Members of the European Parliament (MEPs) reached a preliminary agreement on Saturday to relax the bloc's stringent fiscal regulations, providing governments with extended timelines to reduce debt while incentivising investments in critical areas such as climate, industry, and security.

<a href="https://www.wionews.com/business-economy/eu-agrees-on-revised-fiscal-rules-to-spur-investments-and-debt-reduction-689533">Read more here </a><o:p></o:p>

Germany faces economic challenges amid strikes and structural issues<o:p></o:p>

Germany, the fourth-largest economy, is grappling with a series of challenges as the new year unfolds. Recent strikes and protests have disrupted transportation networks and underscored deeper issues within the country's economy.

<a href="https://www.wionews.com/business-economy/germany-faces-economic-challenges-amidst-strikes-and-structural-issues-689440">Read more here </a><o:p></o:p>

Tesco sells retail banking operations to Barclays in $757 million deal<o:p></o:p>

Barclays has struck a deal to acquire Tesco's retail banking operations for £600 million ($757 million), a move set to reshape the landscape of the banking sector.

<a href="https://www.wionews.com/business-economy/tesco-sells-retail-banking-operations-to-barclays-in-757-million-deal-689444">Read more here </a><o:p></o:p>

Barclays announces new policies limiting funding for oil and gas projects<o:p></o:p>

Barclays, a major player in the banking industry, has announced significant changes to its funding policies concerning oil and gas projects.

<a href="https://www.wionews.com/business-economy/barclays-announces-new-policies-limiting-funding-for-oil-and-gas-projects-689451">Read more here</a>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Tower Semiconductor proposes $8 bn chip plant in India: Report Tower Semiconductor, a leading Israeli chipmaker, has reportedly submitted a proposal to the Indian government for the establishment of an $8 billion chip manufacturing plant in the country.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Tower Semiconductor proposes $8 bn chip plant in India: Report Tower Semiconductor, a leading Israeli chipmaker, has reportedly submitted a proposal to the Indian government for the establishment of an $8 billion chip manufacturing plant in the country. Read more here IMF warns of slower growth in West Asia in 2024 citing oil cuts, regional tensions In a recent address at the Arab Fiscal Forum in Dubai, International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted concerns over the sluggish growth of West Asia economies. Read more here US judge orders Elon Musk to testify in SEC's Twitter probe, deadline set for agreement A federal judge has mandated Elon Musk to testify once again in the US Securities and Exchange Commission's investigation into his $44 billion acquisition of Twitter, setting a deadline for both parties to finalise the details of the interview. Read more here Israel economy poised for recovery despite Moody's downgrade, says bank of Israel Governor Amidst the backdrop of Moody's recent downgrade of Israel's sovereign credit rating, Bank of Israel Governor Amir Yaron remains optimistic about the country's economic prospects. Read more here Nissan shares plunge amid market concerns in China: Report Nissan Motor witnessed its sharpest stock decline in over two decades, plummeting by 12 per cent on Friday, following disappointing quarterly earnings and slashed car sales estimates, primarily attributed to fierce competition in the Chinese auto market. Read more here Diamondback energy and Endeavor energy to merge, forming $50 billion oil giant In a new development, US shale oil rivals Diamondback Energy and Endeavor Energy Resources are on the verge of finalising a deal worth approximately $25 billion in cash and stock, as reported by Reuters. Read more here EU agrees on revised fiscal rules to spur investments and debt reduction EU member states and Members of the European Parliament (MEPs) reached a preliminary agreement on Saturday to relax the bloc's stringent fiscal regulations, providing governments with extended timelines to reduce debt while incentivising investments in critical areas such as climate, industry, and security. Read more here Germany faces economic challenges amid strikes and structural issues Germany, the fourth-largest economy, is grappling with a series of challenges as the new year unfolds. Recent strikes and protests have disrupted transportation networks and underscored deeper issues within the country's economy. Read more here Tesco sells retail banking operations to Barclays in $757 million deal Barclays has struck a deal to acquire Tesco's retail banking operations for £600 million ($757 million), a move set to reshape the landscape of the banking sector. Read more here Barclays announces new policies limiting funding for oil and gas projects Barclays, a major player in the banking industry, has announced significant changes to its funding policies concerning oil and gas projects. Read more here

WION Business Wrap |Tower Semiconductor’s $8 bn India plant, IMF on West Asia’s slow growth and more

As global markets closely monitor japan's monetary policy, the International Monetary Fund's first deputy managing director, Gita Gopinath, weighs in on the Bank of Japan's potential shift. With japan's output gap closing and wage negotiations promising growth, gopinath emphasises the importance of a gradual approach and clear communication to avoid market disruptions.

IMF's Gita Gopinath backs Japan's policy shift

The IMF has issued a warning of debt distress in Maldives. Male borrows heavily from Beijing. Is China trying to debt-trap yet another poor nation?

Gravitas | Is China trying to debt-trap Maldives?

Having shifted its allegiances from India to China, the strategically placed Indian Ocean nation of Maldives is at high risk of "debt distress", according to a warning issued by the International Monetary Fund (IMF) on Wednesday (Feb 7).&nbsp;

The island nation has borrowed heavily from China, infamous for ensnaring smaller countries using its 'debt trap' tactics.&nbsp;

"Without significant policy changes, the overall fiscal deficits and public debt are projected to stay elevated," IMF said in its review of Maldives' economy.&nbsp;

"The Maldives remains at high risk of external and overall debt distress".

As per World Bank estimates, Maldives owes China about 43 per cent of its national debt which comes up to $3 billion.

<h2>Muizzi laments&nbsp;debt crisis&nbsp;</h2>

The warning by the monetary agency came a day after Maldivian President Mohamed Muizzi conceded that he could not launch new development projects in the country due to the debt situation.&nbsp;

"I want to carry out more development projects. But this is why we cannot start all the stalled projects and launch new projects in all the islands at once," said Muizzu.&nbsp;

"The next two months will be the most difficult. This is the most critical time.&nbsp;It will become much easier after July. But we're starting now to do the work necessary to earn income," he added.&nbsp;

<a href="https://www.wionews.com/videos/maldives-anti-president-faces-impeachment-muizzus-pro-china-moves-to-cost-him-684920">Watch |&nbsp;'Maldives' anti-India President | Muizzu's Pro-China Moves To Cost Him?</a>

<iframe allowfullscreen="" autoplay="1" data-gtm-yt-inspected-19="true" frameborder="0" height="350" src="https://www.wionews.com/videos/maldives-anti-president-faces-impeachment-muizzus-pro-china-moves-to-cost-him-684920/embed" width="560"></iframe>

Despite lamenting about the debt crisis that his nation is facing, Muizzu has firmly planted himself in the China corner by angering New Delhi.&nbsp;

After his China visit last month which was a departure from the tradition of a Maldivian leader visiting India as the first foreign country, Muizzu thanked Beijing for its&nbsp;"selfless assistance" for development funds.&nbsp;

The two countries 'upgraded' their bilateral ties and signed 20 key agreements, including one in which Beijing pledged to extend funding for infrastructure in the Indian Ocean archipelago.

<a href="https://www.wionews.com/south-asia/maldives-opposition-appointed-prosecutor-general-stabbed-amid-political-crisis-685352">Also read |&nbsp;Maldives' opposition-appointed prosecutor general stabbed amid political crisis</a>

Speaking at an event at China's Great Hall of the People, Chinese President Xi Jinping referred to Muizzu as "an old friend".

Experts are of the view that Muizzu&nbsp;is following the line taken by his mentor and former president Abdulla Yameen, who ruled the island nation for five years and borrowed heavily from China.&nbsp;

After Yameen left the archipelago in tatters, it was New Delhi that provided the necessary help, only to be cast aside by&nbsp;Muizzu's hara-kiri policies yet again.&nbsp;

(With inputs from agencies)

Having shifted its allegiances from India to China, the strategically placed Indian Ocean nation of Maldives is at high risk of "debt distress", according to a warning issued by the International Monetary Fund (IMF) on Wednesday (Feb 7).

Having shifted its allegiances from India to China, the strategically placed Indian Ocean nation of Maldives is at high risk of "debt distress", according to a warning issued by the International Monetary Fund (IMF) on Wednesday (Feb 7). The island nation has borrowed heavily from China, infamous for ensnaring smaller countries using its 'debt trap' tactics. "Without significant policy changes, the overall fiscal deficits and public debt are projected to stay elevated," IMF said in its review of Maldives' economy. "The Maldives remains at high risk of external and overall debt distress". As per World Bank estimates, Maldives owes China about 43 per cent of its national debt which comes up to $3 billion. Muizzi laments debt crisis The warning by the monetary agency came a day after Maldivian President Mohamed Muizzi conceded that he could not launch new development projects in the country due to the debt situation. "I want to carry out more development projects. But this is why we cannot start all the stalled projects and launch new projects in all the islands at once," said Muizzu. "The next two months will be the most difficult. This is the most critical time. It will become much easier after July. But we're starting now to do the work necessary to earn income," he added. Watch | 'Maldives' anti-India President | Muizzu's Pro-China Moves To Cost Him? Despite lamenting about the debt crisis that his nation is facing, Muizzu has firmly planted himself in the China corner by angering New Delhi. After his China visit last month which was a departure from the tradition of a Maldivian leader visiting India as the first foreign country, Muizzu thanked Beijing for its "selfless assistance" for development funds. The two countries 'upgraded' their bilateral ties and signed 20 key agreements, including one in which Beijing pledged to extend funding for infrastructure in the Indian Ocean archipelago. Also read | Maldives' opposition-appointed prosecutor general stabbed amid political crisis Speaking at an event at China's Great Hall of the People, Chinese President Xi Jinping referred to Muizzu as "an old friend". Experts are of the view that Muizzu is following the line taken by his mentor and former president Abdulla Yameen, who ruled the island nation for five years and borrowed heavily from China. After Yameen left the archipelago in tatters, it was New Delhi that provided the necessary help, only to be cast aside by Muizzu's hara-kiri policies yet again. (With inputs from agencies)

IMF warns Maldives of 'debt crisis' due to China borrowing as Muizzu laments economic situation

As the first month of 2024 concludes and more data comes in on the state of the global economy, economists are turning optimistic. However, the journey into the remainder of the year is not without challenges, as several uncertainties loom on the horizon. Economic commentators have turned bullish as key indicators signal optimism and recovery of major economies worldwide.

Global inflation seen moderating to 5.8%: IMF

Pakistan is gathering up for two key events in quick succession number one a general election and number two the expiry of an International Monetary Fund bailout program. Watch to know more!

Pakistan faces elections and IMF bailout expiry

Pakistan is gearing up for two key events, in quick succession, number one general election and number two the expiry of International Monetary Fund bailout program. The nation will choose a new Prime Minister on February 8. Watch to know more!

Pakistan faces an Election and IMF bailout expiry

The property sector crisis in China is unlikely to end anytime soon. That's what two IMF officials have written in a recently-published blog.

IMF officials write on China's realty sector

The International Monetary Fund's (IMF's) Managing Director, Kristalina Georgieva, has cautioned European governments against yielding to demands for increased financial support from protesting farmers across the continent. <o:p></o:p>

Amid weeks of disruptive yet predominantly peaceful demonstrations by farmers from Germany, France, Italy, Belgium, and Greece, Georgieva emphasised the potential consequences if governments succumb to the pressure. <o:p></o:p>

In a press briefing at the IMF's Washington offices, Georgieva acknowledged the challenges faced by farmers but warned against compromising the economic strength of nations due to populist sentiments.<o:p></o:p>

AFP quoted Georgieva, who directly addressed the farmers' protests.<o:p></o:p>

"You see the farmers protesting. On the human level, I understand they face more hardship, and it is not easy to do the job they do,” she said. <o:p></o:p>

However, she stressed the importance of governments not allowing such sentiments to corner them into actions detrimental to the overall economic stability. Georgieva emphasised the possibility of regret if governments yield to the pressure and compromise their ability to take necessary measures for the strength of their economies.<o:p></o:p>

Thousands of European farmers converged in Brussels for protests during a meeting between French President Emmanuel Macron and European Commission Chief Ursula von der Leyen. <o:p></o:p>

The demonstrations aimed to secure concessions from European leaders ahead of upcoming elections. Post-summit, Macron announced that France had successfully advocated for "stricter rules" on cereal and poultry imports, including those from Ukraine. <o:p></o:p>

In a comprehensive briefing covering various topics, Georgieva highlighted the challenges associated with providing financial support, cautioning that while it's easy to offer support, retracting it poses significant difficulties. <o:p></o:p>

<span lang="EN-GB" style="font-size:12.0pt;line-height:107%;font-family:&quot;Calibri&quot;,sans-serif;
mso-ascii-theme-font:minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font:
minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;;
mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-GB;mso-fareast-language:
EN-GB;mso-bidi-language:AR-SA">(With inputs from AFP)

The International Monetary Fund's (IMF's) Managing Director, Kristalina Georgieva, has cautioned European governments against yielding to demands for increased financial support from protesting farmers across the continent.

The International Monetary Fund's (IMF's) Managing Director, Kristalina Georgieva, has cautioned European governments against yielding to demands for increased financial support from protesting farmers across the continent. Amid weeks of disruptive yet predominantly peaceful demonstrations by farmers from Germany, France, Italy, Belgium, and Greece, Georgieva emphasised the potential consequences if governments succumb to the pressure. In a press briefing at the IMF's Washington offices, Georgieva acknowledged the challenges faced by farmers but warned against compromising the economic strength of nations due to populist sentiments. AFP quoted Georgieva, who directly addressed the farmers' protests. "You see the farmers protesting. On the human level, I understand they face more hardship, and it is not easy to do the job they do,” she said. However, she stressed the importance of governments not allowing such sentiments to corner them into actions detrimental to the overall economic stability. Georgieva emphasised the possibility of regret if governments yield to the pressure and compromise their ability to take necessary measures for the strength of their economies. Thousands of European farmers converged in Brussels for protests during a meeting between French President Emmanuel Macron and European Commission Chief Ursula von der Leyen. The demonstrations aimed to secure concessions from European leaders ahead of upcoming elections. Post-summit, Macron announced that France had successfully advocated for "stricter rules" on cereal and poultry imports, including those from Ukraine. In a comprehensive briefing covering various topics, Georgieva highlighted the challenges associated with providing financial support, cautioning that while it's easy to offer support, retracting it poses significant difficulties. (With inputs from AFP)

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