The IMF claims that Guyana's GDP grew by 62.3% in 2022, the fastest in the world. In addition to the fact that a third oil field has begun to produce oil, investments in housing, transportation, and human capital development have all contributed to the growth of Guyana's nonoil industry.

Guyana's Oil Odyssey: From discovery to global prominence

Sri Lanka's bid for financial stability faces a significant setback. The international monetary fund, in its first review under a 2.9 billion dollar bailout package has frozen a crucial 330 million dollar tranche. The reason behind this decision is a growing concern over a potential shortfall in the Sri Lankan government's revenue generation.

IMF stalls $330 mn tranche for Sri Lanka due to revenue shortfall

<p>The International Monetary Fund (IMF) on Thursday (September 21) approved a $300 million loan agreement for Burkina Faso to combat poverty and bolster the economy.&nbsp;</p>

<p>The IMF executive board has granted a&nbsp;four-year loan agreement worth around $302 million under its&nbsp;Extended Credit Facility (ECF) to the West African nation. The first tranche of $31.8 million in aid will be disbursed immediately, the global monetary body said.&nbsp;</p>

<p>IMF said the credit line will help "create fiscal space for priority spending, strengthen resilience to shocks while reducing poverty, and bolster fiscal discipline, transparency and governance".&nbsp;</p>

<p>"It will also help close financing gaps reflecting tight financial conditions, large fiscal deficits, debt vulnerabilities, food insecurity, and fragile security conditions," said the IMF.&nbsp;</p>

<p>IMF Deputy Managing Director Kenji Okamura, commenting on the 48-month-long loan&nbsp;agreement, said the priority lay in changing the challenging&nbsp;macroeconomic outlook of the country.&nbsp;</p>

<p>“For the country’s long-term development process, it remains essential to sustain structural reforms to foster economic growth and diversification as well as to reduce poverty. In this context, further efforts to improve the business environment, reinforce governance and anti-corruption efforts, and address the security crisis are critical," said&nbsp;Okamura.&nbsp;</p>

<p><a href="https://www.wionews.com/world/burkina-faso-at-least-51killed-in-attacks-by-jihadist-groups-564113" target="_blank"><strong>Also read | Burkina Faso: At least 51 killed in attacks by jihadist groups</strong></a></p>

<h2><strong>Jihadist war-torn country of Burkina Faso</strong></h2>

<p>Being one of the poorest countries, Burkina Faso is undergoing a violent cycle after witnessing two coups last year. It is battling jihadist insurgency which spilt over eight years ago in 2015 from the neighbouring country of Mali, which is also incidentally run by the military.&nbsp;</p>

<p>The region is bustling with Islamist groups linked to deadly terror outfits al Qaeda and Islamic State.&nbsp;</p>

<p><a href="https://www.wionews.com/videos/troops-film-boys-killings-in-burkina-faso-579159"><strong>WATCH |&nbsp;Troops film boys' killings in Burkina Faso</strong></a></p>

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<p>According to&nbsp;the IMF, over 40 per cent of Burkina Faso's population currently lives in poverty while the UN refugee agency states that&nbsp;two million people have been displaced, with no end to the jihadist violence in sight. Additionally, the violence has led to the death of over 16,000 people.&nbsp;</p>

<p>"Growing insecurity and conflict means vulnerability is increasing in the region, and it is getting harder to help communities in isolated areas," said UNICEF Regional Director for West and Central Africa, Marie-Pierre Poirier.</p>

<p><em>(With inputs from agencies)</em></p>

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The International Monetary Fund (IMF) on Thursday (September 21) approved a $300 million loan agreement for Burkina Faso to combat poverty and bolster the economy.

The International Monetary Fund (IMF) on Thursday (September 21) approved a $300 million loan agreement for Burkina Faso to combat poverty and bolster the economy. The IMF executive board has granted a four-year loan agreement worth around $302 million under its Extended Credit Facility (ECF) to the West African nation. The first tranche of $31.8 million in aid will be disbursed immediately, the global monetary body said. IMF said the credit line will help "create fiscal space for priority spending, strengthen resilience to shocks while reducing poverty, and bolster fiscal discipline, transparency and governance". "It will also help close financing gaps reflecting tight financial conditions, large fiscal deficits, debt vulnerabilities, food insecurity, and fragile security conditions," said the IMF. IMF Deputy Managing Director Kenji Okamura, commenting on the 48-month-long loan agreement, said the priority lay in changing the challenging macroeconomic outlook of the country. “For the country’s long-term development process, it remains essential to sustain structural reforms to foster economic growth and diversification as well as to reduce poverty. In this context, further efforts to improve the business environment, reinforce governance and anti-corruption efforts, and address the security crisis are critical," said Okamura. Also read | Burkina Faso: At least 51 killed in attacks by jihadist groups Jihadist war-torn country of Burkina Faso Being one of the poorest countries, Burkina Faso is undergoing a violent cycle after witnessing two coups last year. It is battling jihadist insurgency which spilt over eight years ago in 2015 from the neighbouring country of Mali, which is also incidentally run by the military. The region is bustling with Islamist groups linked to deadly terror outfits al Qaeda and Islamic State. WATCH | Troops film boys' killings in Burkina Faso × According to the IMF, over 40 per cent of Burkina Faso's population currently lives in poverty while the UN refugee agency states that two million people have been displaced, with no end to the jihadist violence in sight. Additionally, the violence has led to the death of over 16,000 people. "Growing insecurity and conflict means vulnerability is increasing in the region, and it is getting harder to help communities in isolated areas," said UNICEF Regional Director for West and Central Africa, Marie-Pierre Poirier. (With inputs from agencies) WATCH WION LIVE HERE:

IMF approves $300 million loan for war-torn Burkina Faso

Following a four-year self-imposed Exile Nawaz Sharif's return to Pakistan was expected on October 21st. It is now under question amid the reopening of corruption cases against him.

Corruption cases against Nawaz Sharif reopened

<p>Former Prime Minister of Pakistan, Nawaz Sharif, recently addressed a party meeting in Lahore via video link from London, where he expressed his concerns about Pakistan's economic crisis. He questioned why Pakistan was seeking financial aid from around the world while India had achieved significant milestones, such as reaching the Moon and hosting the G20 summit.</p>

<p>Nawaz Sharif began by talking about&nbsp;the dire economic situation in Pakistan, where the current Prime Minister had been travelling to various countries to solicit financial assistance.</p>

<p>He contrasted this with India's achievements, stressing that India had not only reached the Moon but also hosted international summits like the G20. This, he argued, raised questions about Pakistan's failure to attain similar feats.</p>

<p><strong>Also read |</strong>&nbsp;<a href="https://www.wionews.com/south-asia/everything-will-be-forgiven-how-the-us-got-pakistans-support-for-ukraine-after-aiding-imran-khans-ouster-637134">'Everything will be forgiven': How the US got Pakistan's support for Ukraine after aiding Imran Khan's ouster</a></p>

<h2><strong>Comparison with India's economic reforms</strong></h2>

<p>Sharif pointed out that during his tenure as Prime Minister in the 1990s, Pakistan had initiated economic reforms similar to those later adopted by India.</p>

<p>He cited India's remarkable growth in foreign exchange reserves, from a mere billion dollars during Atal Bihari Vajpayee's tenure to an impressive $600 billion, as evidence of India's economic success.&nbsp;</p>

<p>In July, Pakistan received $1.2 billion from the International Monetary Fund (IMF) as part of a $3 billion bailout package aimed at stabilising the country's struggling economy.&nbsp;</p>

<p><strong>Also watch |&nbsp;Pakistan: Spiraling economic crisis and ballooning inflation forces Pakistanis into debt traps</strong></p>

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<p>Nawaz Sharif, who had been in self-imposed exile in the UK for over four years, announced his return to Pakistan on October 21. He plans to lead the Pakistan Muslim League-Nawaz (PML-N) party's campaign for the upcoming general elections. His party has also stated its intention to secure protective bail for him.</p>

<p>Sharif did not shy away from placing blame on Pakistan's former generals and judges for the country's predicament.</p>

<p>He mentioned that four judges had played a role in sending him home despite his efforts to eliminate power load shedding in the country. He specifically targeted former chief justices Saqib Nisar and Asif Saeed Khosa, alleging that they were influenced by the former army chief and spy chief. He argued that their actions amounted to a crime greater than murder and asserted that they did not deserve pardons, highlighting&nbsp;that it would be an injustice to the nation.</p>

<p><em>(With inputs from agencies)</em></p>

<p>&nbsp;</p>

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Former Prime Minister of Pakistan, Nawaz Sharif, recently addressed a party meeting in Lahore via video link from London, where he expressed his concerns about Pakistan's economic crisis.

Former Prime Minister of Pakistan, Nawaz Sharif, recently addressed a party meeting in Lahore via video link from London, where he expressed his concerns about Pakistan's economic crisis. He questioned why Pakistan was seeking financial aid from around the world while India had achieved significant milestones, such as reaching the Moon and hosting the G20 summit. Nawaz Sharif began by talking about the dire economic situation in Pakistan, where the current Prime Minister had been travelling to various countries to solicit financial assistance. He contrasted this with India's achievements, stressing that India had not only reached the Moon but also hosted international summits like the G20. This, he argued, raised questions about Pakistan's failure to attain similar feats. Also read | 'Everything will be forgiven': How the US got Pakistan's support for Ukraine after aiding Imran Khan's ouster Comparison with India's economic reforms Sharif pointed out that during his tenure as Prime Minister in the 1990s, Pakistan had initiated economic reforms similar to those later adopted by India. He cited India's remarkable growth in foreign exchange reserves, from a mere billion dollars during Atal Bihari Vajpayee's tenure to an impressive $600 billion, as evidence of India's economic success. In July, Pakistan received $1.2 billion from the International Monetary Fund (IMF) as part of a $3 billion bailout package aimed at stabilising the country's struggling economy. Also watch | Pakistan: Spiraling economic crisis and ballooning inflation forces Pakistanis into debt traps Nawaz Sharif, who had been in self-imposed exile in the UK for over four years, announced his return to Pakistan on October 21. He plans to lead the Pakistan Muslim League-Nawaz (PML-N) party's campaign for the upcoming general elections. His party has also stated its intention to secure protective bail for him. Sharif did not shy away from placing blame on Pakistan's former generals and judges for the country's predicament. He mentioned that four judges had played a role in sending him home despite his efforts to eliminate power load shedding in the country. He specifically targeted former chief justices Saqib Nisar and Asif Saeed Khosa, alleging that they were influenced by the former army chief and spy chief. He argued that their actions amounted to a crime greater than murder and asserted that they did not deserve pardons, highlighting that it would be an injustice to the nation. (With inputs from agencies) WATCH WION LIVE HERE:

Nawaz Sharif praises Modi, says Pak begging for funds while India has reached the Moon

A report shows that Pakistan sold arms worth $900 million to US for supply to the Ukrainian military. More has been revealed about the secret arms deal. Did Pakistan sell weapons to Ukraine in the past? Molly Gambhir tells you more.

Gravitas: Report: US helped Pakistan secure an IMF bailout package

This year, Sri Lanka is expected to complete its reform, which began in 2022 when the country's greatest economic crisis in decades sparked widespread demonstrations and ultimately led to the removal of the government.

Sri Lanka's $10 BN pension fund boosts IMF bailout prospects

<p>After the country’s biggest economic crisis in decades caused widespread riots and the overthrow of its administration in 2022, Sri Lanka has moved closer to finishing its restructuring this year by exchanging defaulted local debt for fresh bonds.</p>

<p>Bloomberg cited a statement posted Tuesday on the website of the finance ministry wherein, the government accepted offers from superannuation funds worth 3.2 trillion rupees ($10 billion).</p>

<p>The decision raises Sri Lanka’s prospects of passing the IMF’s first review of its $3 billion bailout, which will begin this week, opening the door to a payout of approximately $330 million by November.</p>

<p>The nation’s debt negotiations with holders of its international debt, including creditors like China and India, are currently the centre of attention.</p>

<p>Bloomberg quoted the South Asian economist from Standard Chartered Plc., Saurav Anand as saying, “It’s an important milestone for sure, but to complete the IMF review, the government will also need to reach an agreement with the bilateral lenders.” He further said that next month’s IMF proceedings and the Sri Lankan president’s visit to China are important areas of focus at present.</p>

<p>Sri Lanka is making headway in resolving its financial issues, joining some of the most insolvent countries in the world, such as Ghana and Zambia. Zambia became the first country to receive significant debt relief through the Common Framework of the Group of 20 nations in June. Zambia’s president, Hakainde Hichilema, is currently on a state visit to China.</p>

<p>Dollar bonds issued by the island’s government have returned 54 per cent to investors this year as investment flowed back after it received a bailout following months of food and fuel shortages. While a Bloomberg indicator of emerging market national debt has increased 3 per cent this year, Zambian dollar bonds, which are also undergoing restructuring, have increased by 20 per cent this year.</p>

<p>The foreign currency bonds due in 2030 remained stable at 45.4 cents on the dollar on Tuesday, according to indicative pricing reported by Bloomberg, while the Sri Lankan rupee fell 0.2 per cent.</p>

<p>The struggle to comply with IMF demands to maintain funding is seen in Egypt's and Pakistan's attempts to sell state assets despite the political dangers involved. Investors feared that these troubled nations could be the next to default.</p>

<p>Last year, a new administration was formed as a result of the political upheaval brought on by Sri Lanka’s economic collapse. After his predecessor Gotabaya Rajapaksa fled the country, President Ranil Wickremesinghe was chosen by parliament and is working to enact economic and constitutional reforms in an effort to reverse the trend.</p>

<p>According to Shehan Semasinghe, a junior finance minister, Sri Lanka is in talks with China, which has agreed to support the country’s debt restructuring.</p>

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After the country’s biggest economic crisis in decades caused widespread riots and the overthrow of its administration in 2022, Sri Lanka has moved closer to finishing its restructuring this year by exchanging defaulted local debt for fresh bonds.

After the country’s biggest economic crisis in decades caused widespread riots and the overthrow of its administration in 2022, Sri Lanka has moved closer to finishing its restructuring this year by exchanging defaulted local debt for fresh bonds. Bloomberg cited a statement posted Tuesday on the website of the finance ministry wherein, the government accepted offers from superannuation funds worth 3.2 trillion rupees ($10 billion). The decision raises Sri Lanka’s prospects of passing the IMF’s first review of its $3 billion bailout, which will begin this week, opening the door to a payout of approximately $330 million by November. The nation’s debt negotiations with holders of its international debt, including creditors like China and India, are currently the centre of attention. Bloomberg quoted the South Asian economist from Standard Chartered Plc., Saurav Anand as saying, “It’s an important milestone for sure, but to complete the IMF review, the government will also need to reach an agreement with the bilateral lenders.” He further said that next month’s IMF proceedings and the Sri Lankan president’s visit to China are important areas of focus at present. Sri Lanka is making headway in resolving its financial issues, joining some of the most insolvent countries in the world, such as Ghana and Zambia. Zambia became the first country to receive significant debt relief through the Common Framework of the Group of 20 nations in June. Zambia’s president, Hakainde Hichilema, is currently on a state visit to China. Dollar bonds issued by the island’s government have returned 54 per cent to investors this year as investment flowed back after it received a bailout following months of food and fuel shortages. While a Bloomberg indicator of emerging market national debt has increased 3 per cent this year, Zambian dollar bonds, which are also undergoing restructuring, have increased by 20 per cent this year. The foreign currency bonds due in 2030 remained stable at 45.4 cents on the dollar on Tuesday, according to indicative pricing reported by Bloomberg, while the Sri Lankan rupee fell 0.2 per cent. The struggle to comply with IMF demands to maintain funding is seen in Egypt's and Pakistan's attempts to sell state assets despite the political dangers involved. Investors feared that these troubled nations could be the next to default. Last year, a new administration was formed as a result of the political upheaval brought on by Sri Lanka’s economic collapse. After his predecessor Gotabaya Rajapaksa fled the country, President Ranil Wickremesinghe was chosen by parliament and is working to enact economic and constitutional reforms in an effort to reverse the trend. According to Shehan Semasinghe, a junior finance minister, Sri Lanka is in talks with China, which has agreed to support the country’s debt restructuring. WATCH WION LIVE HERE

Sri Lanka’s local bond swap agreement brings it nearer to IMF bailout

<p>The International Monetary Fund (IMF) has turned down a relief plan submitted by Pakistan's caretaker government aimed at assisting power consumers, media reports said citing sources. According to the sources from Pakistan's Ministry of Finance cited by The Express Tribune media outlet, the IMF rejected the proposal, asserting that its actual impact would surpass the suggested PKR 5 billion, estimating it to be over PKR 15 billion.</p>

<h2><strong>IMF's demand for tax revenue plan</strong></h2>

<p>Moreover, the IMF has insisted on a detailed strategy for generating this PKR 15 billion in tax revenue, leading to a delay as a revised plan must be presented to the IMF. Subsequent discussions are anticipated between IMF representatives and the Pakistan's Ministry of Finance.</p>

<h2><strong>Pakistan government assurances</strong></h2>

<p>Sources cited by various media outlets also revealed that the caretaker government assured the IMF&nbsp;the proposed relief measures would not disrupt the budget. Additionally, it requested permission from the IMF to allow power bills to be paid in four monthly installments.</p>

<h2><strong>Action against power theft</strong></h2>

<p>In a related development, caretaker Prime Minister Anwaar-ul-Haq Kakar issued immediate directives to take action against individuals involved in power theft.</p>

<p>Also Read | <a href="https://www.wionews.com/world/west-bank-israeli-forces-kill-islamic-jihad-gunman-wound-palestinian-632569">West Bank: Israeli forces kill Islamic Jihad gunman, wound Palestinian</a></p>

<p>He reportedly instructed relevant authorities to submit daily reports on progress. The prime minister also stressed the need for swift action against defaulters and stressed that there should be no leniency toward those engaged in power theft and defaulting.</p>

<h2><strong>Economic stability strategy</strong></h2>

<p>Separately, Prime Minister Kakar instructed the Ministry of Finance to develop an effective strategy for achieving economic stability in the country.</p>

<p>Also Read | <a href="https://www.wionews.com/world/after-largest-ever-wildfires-greece-witnesses-heavy-rains-and-flooding-one-dead-632590">After ‘largest ever’ wildfires, Greece witnesses heavy rains and flooding; one dead</a></p>

<p>During a meeting with Interim Finance Minister Shamshad Akhtar, the finance minister briefed the prime minister on the current economic situation. Kakar affirmed his government's commitment to exploring innovative solutions to provide relief to electricity consumers.</p>

<p><strong>Watch | Russia-Ukraine war: Ukraine says Russian drone hit NATO member Romania</strong></p>

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<p>“The government would make informed decisions to satisfy the masses on the issue of electricity bills without deviating from the country’s commitments with the international financial institutions,” the interim PM added.</p>

<p>Meanwhile, the Pakistan rupee hit a new record low to 20 percent in 2023. There's no let-up from the economic crisis as the country battles record-high inflation and falling foreign reserves.</p>

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The International Monetary Fund (IMF) has turned down a relief plan submitted by Pakistan's caretaker government aimed at assisting power consumers, media reports said citing sources.

The International Monetary Fund (IMF) has turned down a relief plan submitted by Pakistan's caretaker government aimed at assisting power consumers, media reports said citing sources. According to the sources from Pakistan's Ministry of Finance cited by The Express Tribune media outlet, the IMF rejected the proposal, asserting that its actual impact would surpass the suggested PKR 5 billion, estimating it to be over PKR 15 billion. IMF's demand for tax revenue plan Moreover, the IMF has insisted on a detailed strategy for generating this PKR 15 billion in tax revenue, leading to a delay as a revised plan must be presented to the IMF. Subsequent discussions are anticipated between IMF representatives and the Pakistan's Ministry of Finance. Pakistan government assurances Sources cited by various media outlets also revealed that the caretaker government assured the IMF the proposed relief measures would not disrupt the budget. Additionally, it requested permission from the IMF to allow power bills to be paid in four monthly installments. Action against power theft In a related development, caretaker Prime Minister Anwaar-ul-Haq Kakar issued immediate directives to take action against individuals involved in power theft. Also Read | West Bank: Israeli forces kill Islamic Jihad gunman, wound Palestinian He reportedly instructed relevant authorities to submit daily reports on progress. The prime minister also stressed the need for swift action against defaulters and stressed that there should be no leniency toward those engaged in power theft and defaulting. Economic stability strategy Separately, Prime Minister Kakar instructed the Ministry of Finance to develop an effective strategy for achieving economic stability in the country. Also Read | After ‘largest ever’ wildfires, Greece witnesses heavy rains and flooding; one dead During a meeting with Interim Finance Minister Shamshad Akhtar, the finance minister briefed the prime minister on the current economic situation. Kakar affirmed his government's commitment to exploring innovative solutions to provide relief to electricity consumers. Watch | Russia-Ukraine war: Ukraine says Russian drone hit NATO member Romania × “The government would make informed decisions to satisfy the masses on the issue of electricity bills without deviating from the country’s commitments with the international financial institutions,” the interim PM added. Meanwhile, the Pakistan rupee hit a new record low to 20 percent in 2023. There's no let-up from the economic crisis as the country battles record-high inflation and falling foreign reserves. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

IMF rejects Pakistan's relief plan for power consumers

New IMF study highlights climate shocks hitting war-torn countries hardest, leading to a potential increase in conflict-related fatalities.

Climate change may increase conflict deaths, says imf

A new IMF report revealed that Saudi Arabia has been spending a staggering $7,000 per person on fuel subsidies, marking the highest in the G20 group over the last two years.

Saudi Arabia leads G20 in $7,000 per person fuel subsidies

<p>Speaking for the first time at the BRICS Summit in Johannesburg, United Nations Secretary-General Antonio Guterres on Thursday (Aug 24) made a strong case for the reform of the United Nations Security Council (UNSC) and sought revision of the Bretton Woods system—a global financial architecture created by the US-led West after the end of World War II.</p>

<p>Guterres said that “today's global governance structures reflect yesterday's world" and that for multilateral institutions to be universal they needed reform.</p>

<p>"They were largely created in the aftermath of World War II when many African countries were still ruled by colonial powers and were not even at the table," Guterres said in remarks on the final day of the BRICS summit.</p>

<p>"This is particularly true of the Security Council of the United Nations and the Bretton Woods institutions," he said, referring to the World Bank and International Monetary Fund.</p>

<h2><strong>'World changed, and so must global governance'</strong></h2>

<p>“The world has changed and so global governance must change with it. It must represent today's power and economic relations and not the power and economic relations of 1945. That is why I have been advocating deep reforms to make global frameworks truly universal and representative of today's realities," Guterres said.</p>

<p>Guterres, however, pointed out that multipolarity alone cannot ensure a peaceful and just status quo. He called for robust and effective multilateral institutions to support this shift.</p>

<p>Drawing parallels, he highlighted the lessons from the early 20th century when Europe's multipolarity without strong multilateral mechanisms contributed to the start of the First World War.</p>

<p>The UN chief warned that without such reforms, fragmentation becomes inevitable.</p>

<p>"We cannot afford a world with a divided global economy and financial system; with diverging strategies on technology including artificial intelligence; and with conflicting security frameworks," he said.</p>

<h2><strong>BRICS: PM Modi chats with Xi Jinping at summit&nbsp;</strong></h2>

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<h2><strong>Global institutions need to be more inclusive&nbsp;</strong></h2>

<p>He said that global institutions need to be inclusive at “every level” and provide a platform for greater representation of women and young people.</p>

<p><strong>Also read |&nbsp;</strong><a href="https://www.wionews.com/world/brics-officials-expands-as-ramaphosa-announces-six-new-members-628689">BRICS officially expands: Six new members to join bloc next year</a></p>

<p>“But all these in the context in which I believe two areas require a particularly important reform effort. One is the Security Council, the second, the Bretton Woods system..."</p>

<p>Guterres was echoing the views of BRICS members who, in their joint statement, called for urgent reform of the UNSC to make it more democratic, representative, effective, and efficient, and to increase the representation of developing countries.</p>

<p><strong>Also read |</strong>&nbsp;<a href="https://www.wionews.com/india-news/south-african-government-refutes-allegations-of-pm-modi-snub-amid-brics-summit-628477"><strong>South African govt refutes media report of snub to PM Narendra Modi amid BRICS summit</strong></a></p>

<p>“We support a comprehensive reform of the UN, including its Security Council, with a view to making it more democratic, representative, effective and efficient, and to increase the representation of developing countries in the Council’s memberships so that it can adequately respond to prevailing global challenges and support the legitimate aspirations of emerging and developing countries from Africa, Asia and Latin America, including Brazil, India and South Africa, to play a greater role in international affairs, in particular in the United Nations, including its Security Council,” the joint statement read.</p>

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Speaking for the first time at the BRICS Summit in Johannesburg, United Nations Secretary-General Antonio Guterres on Thursday (Aug 24) made a strong case for the reform of the United Nations Security Council (UNSC) and sought revision of the Bretton Woods system—a global financial architecture created by the US-led West after the end of World War II.

Speaking for the first time at the BRICS Summit in Johannesburg, United Nations Secretary-General Antonio Guterres on Thursday (Aug 24) made a strong case for the reform of the United Nations Security Council (UNSC) and sought revision of the Bretton Woods system—a global financial architecture created by the US-led West after the end of World War II. Guterres said that “today's global governance structures reflect yesterday's world" and that for multilateral institutions to be universal they needed reform. "They were largely created in the aftermath of World War II when many African countries were still ruled by colonial powers and were not even at the table," Guterres said in remarks on the final day of the BRICS summit. "This is particularly true of the Security Council of the United Nations and the Bretton Woods institutions," he said, referring to the World Bank and International Monetary Fund. 'World changed, and so must global governance' “The world has changed and so global governance must change with it. It must represent today's power and economic relations and not the power and economic relations of 1945. That is why I have been advocating deep reforms to make global frameworks truly universal and representative of today's realities," Guterres said. Guterres, however, pointed out that multipolarity alone cannot ensure a peaceful and just status quo. He called for robust and effective multilateral institutions to support this shift. Drawing parallels, he highlighted the lessons from the early 20th century when Europe's multipolarity without strong multilateral mechanisms contributed to the start of the First World War. The UN chief warned that without such reforms, fragmentation becomes inevitable. "We cannot afford a world with a divided global economy and financial system; with diverging strategies on technology including artificial intelligence; and with conflicting security frameworks," he said. BRICS: PM Modi chats with Xi Jinping at summit Global institutions need to be more inclusive He said that global institutions need to be inclusive at “every level” and provide a platform for greater representation of women and young people. Also read | BRICS officially expands: Six new members to join bloc next year “But all these in the context in which I believe two areas require a particularly important reform effort. One is the Security Council, the second, the Bretton Woods system..." Guterres was echoing the views of BRICS members who, in their joint statement, called for urgent reform of the UNSC to make it more democratic, representative, effective, and efficient, and to increase the representation of developing countries. Also read | South African govt refutes media report of snub to PM Narendra Modi amid BRICS summit “We support a comprehensive reform of the UN, including its Security Council, with a view to making it more democratic, representative, effective and efficient, and to increase the representation of developing countries in the Council’s memberships so that it can adequately respond to prevailing global challenges and support the legitimate aspirations of emerging and developing countries from Africa, Asia and Latin America, including Brazil, India and South Africa, to play a greater role in international affairs, in particular in the United Nations, including its Security Council,” the joint statement read. WATCH WION LIVE HERE

At BRICS summit, UN chief calls for reform of UN Security Council, World Bank, IMF

In a major relief for the economically struggling Argentina, the international monetary fund has approved a 7.5 billion dollar package to the South American nation. the package is a part of a re-financed 44 billion dollar program that has endured months of negotiations amid political uncertainty and wrangling over economic policy.

$7.5 billion IMF package for Argentina

<p>At a time when the BRICS group of emerging economies are deliberating ways to counter the dominance of West-led financial framework in global trade at the bloc's annual summit in Johannesburg, the White House said that US President Joe&nbsp;Biden will discuss reforms in the World Bank and International Monetary Fund (IMF) during G20 summit in New Delhi next month.&nbsp;</p>

<p>At the G20, Biden "will really focus a lot of his energy while he is there on the modernization of the multilateral development banks, including the World Bank and the IMF," the White House said.</p>

<p>The aim is to ensure that the development banks offer "high standard, high leverage solutions" to the challenges developing countries face, it was announced.</p>

<p>He called the two institutions "highly effective and transparent".</p>

<p>"World Bank and IMF are a positive, affirmative alternative to what is a much more opaque, or coercive method" of development finance China is offering, the White House said.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-gets-imf-support-months-after-indias-credit-line-extension-for-economic-recovery-609961">Sri Lanka gets $700mn from World Bank months after India’s extended credit line for economic recovery</a></strong></p>

<p>The United States will push proposals in New Delhi that will increase World Bank and IMF lending power by some $200 billion, US National Security Adviser Jake Sullivan&nbsp;said.</p>

<p>But Sullivan stressed that&nbsp;as a member of the G20 and a key partner in the IMF and World Bank, China is central to modernising both institutions.</p>

<p>"So our support for the World Bank and the IMF is not against China," he said.</p>

<h2><strong>BRICS not a geopolitical rival to the United States: Jake Sullivan</strong></h2>

<p>The BRICS nations -- Brazil, Russia, India, China, and South Africa -- represent a quarter of the global economy, and interest in joining the club has surged with over 20 countries expected to join the grouping upon its conclusion on August 24.</p>

<p><strong>Also watch |&nbsp;World Bank reforms to vastly expand lending</strong></p>

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<p>"We are not looking at the BRICS as evolving into some kind of geopolitical rival to the United States or anyone else. This is a very diverse collection of countries," Sullivan said.</p>

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At a time when the BRICS group of emerging economies are deliberating ways to counter the dominance of West-led financial framework in global trade at the bloc's annual summit in Johannesburg, the White House said that US President Joe Biden will discuss reforms in the World Bank and International Monetary Fund (IMF) during G20 summit in New Delhi next month.

At a time when the BRICS group of emerging economies are deliberating ways to counter the dominance of West-led financial framework in global trade at the bloc's annual summit in Johannesburg, the White House said that US President Joe Biden will discuss reforms in the World Bank and International Monetary Fund (IMF) during G20 summit in New Delhi next month. At the G20, Biden "will really focus a lot of his energy while he is there on the modernization of the multilateral development banks, including the World Bank and the IMF," the White House said. The aim is to ensure that the development banks offer "high standard, high leverage solutions" to the challenges developing countries face, it was announced. He called the two institutions "highly effective and transparent". "World Bank and IMF are a positive, affirmative alternative to what is a much more opaque, or coercive method" of development finance China is offering, the White House said. Also read | Sri Lanka gets $700mn from World Bank months after India’s extended credit line for economic recovery The United States will push proposals in New Delhi that will increase World Bank and IMF lending power by some $200 billion, US National Security Adviser Jake Sullivan said. But Sullivan stressed that as a member of the G20 and a key partner in the IMF and World Bank, China is central to modernising both institutions. "So our support for the World Bank and the IMF is not against China," he said. BRICS not a geopolitical rival to the United States: Jake Sullivan The BRICS nations -- Brazil, Russia, India, China, and South Africa -- represent a quarter of the global economy, and interest in joining the club has surged with over 20 countries expected to join the grouping upon its conclusion on August 24. Also watch | World Bank reforms to vastly expand lending × "We are not looking at the BRICS as evolving into some kind of geopolitical rival to the United States or anyone else. This is a very diverse collection of countries," Sullivan said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

BRICS effect? Biden to push for IMF and World Bank reforms at G20 summit in Delhi

White House is busy preparing for the upcoming G20 summit which is scheduled for next month in New Delhi. Washington says US President Joe Biden is discussing a wide range of global issues ranging from Putin's invasion of Ukraine to reforms in the IMF and World Bank.

US President Joe Biden to push for reforms in World Bank, IMF; says 'Not against China' | WION

US President Joe Biden plans to advocate for reforms to the IMF and World Bank during the G20 summit in New Delhi next month. The aim is to provide better support and financing options for developing countries, as an alternative to China's "coercive and unsustainable lending" through the Belt and Road Initiative.

US: Joe Biden to push IMF and World Bank reforms at G20 summit

On Monday, Argentina's economic minister and presidential contender Sergio Massa will meet with the IMF in the US To discuss refinancing disbursements amid the peso's collapse.

Argentina's Sergio Massa visits US for IMF loan talks

In the latest development, the government has claimed that the international monetary fund wanted a '100% devaluation' of the Peso. But the number came down to 18% after some discussions, it added. The statement however underscores rising pressure on the embattled peso, which was devalued and pegged at 350 per dollar on Monday.

Argentina claims IMF wanted 100% devaluation of Peso

<p>Pakistan has decided to appoint Shamshad Akhtar as the finance minister for the present government, ensuring the country’s commitments to the International Monetary Fund (IMF) for its key bailout program, Bloomberg reported citing two sources familiar with the matter. &nbsp;</p>

<p>The offer, made by interim Prime Minister Anwaar-ul-Haq Kakar was accepted.</p>

<p>This week, at the end of the five-year term of the legislature and just weeks after securing a $3 billion loan package with the IMF to prevent a default, former prime minister Shehbaz Sharif turned over authority to Kakar. The new premier, whose main responsibility will be to supervise the national elections scheduled for November, promised to maintain economic policies while serving in an interim capacity.&nbsp;</p>

<p>Political parties want to base the elections on the most recent population census, which will take an additional three months to be completed. As a result, the polls are expected to be postponed.&nbsp;</p>

<p>In 2018, Akhtar, who oversaw the central bank from 2006 to 2009, briefly filled the position of the finance minister. She now serves as chairperson of Pakistan Stock Exchange Ltd. She has also held positions in the Asian Development Bank, the World Bank, and the United Nations.&nbsp;</p>

<p>(With inputs from agencies)&nbsp;</p>

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Pakistan has decided to appoint Shamshad Akhtar as the finance minister for the present government, ensuring the country’s commitments to the International Monetary Fund (IMF) for its key bailout program, Bloomberg reported citing two sources familiar with the matter.

Pakistan has decided to appoint Shamshad Akhtar as the finance minister for the present government, ensuring the country’s commitments to the International Monetary Fund (IMF) for its key bailout program, Bloomberg reported citing two sources familiar with the matter. The offer, made by interim Prime Minister Anwaar-ul-Haq Kakar was accepted. This week, at the end of the five-year term of the legislature and just weeks after securing a $3 billion loan package with the IMF to prevent a default, former prime minister Shehbaz Sharif turned over authority to Kakar. The new premier, whose main responsibility will be to supervise the national elections scheduled for November, promised to maintain economic policies while serving in an interim capacity. Political parties want to base the elections on the most recent population census, which will take an additional three months to be completed. As a result, the polls are expected to be postponed. In 2018, Akhtar, who oversaw the central bank from 2006 to 2009, briefly filled the position of the finance minister. She now serves as chairperson of Pakistan Stock Exchange Ltd. She has also held positions in the Asian Development Bank, the World Bank, and the United Nations. (With inputs from agencies) WATCH WION LIVE HERE

Pakistan to choose ex-central banker as finance minister 

China's household debt has surged to 63.5% and is now approaching the IMF's warning line of 65%. What explains the surging debt? What is china doing to bring it down? Molly Gambhir reports

Gravitas: China's household debt approaches IMF red line

Pakistan Prime Minister Shehbaz Sharif confirmed the National Assembly is said to dissolve on the 9th of August three days ahead of its set date.

Pakistan: In absence of consensus, Pakistan poll panel will step in

<p>China's household debt levels have reached record levels, a South China Morning Post report has said.</p>

<p>According to a report released by the National Institution for Finance and Development (NIFD), the country’s household debt increased from 61.9 per cent at the end of last year to 63.5 per cent in the second quarter of 2023. The debt rate is inching closer to the International Monetary Fund (IMF) warning point of 65 per cent, which indicates potential financial risks.</p>

<p>The rise in household debt comes amid an economic downturn and the Xi Jinping-led administration's push to increase consumption in order to stimulate the economy.</p>

<p>As on June 30, consumer loans, credit card debt, private borrowings, and loans used to fund business operations occupied the majority of China's household debt at 38.6 trillion yuan (US$5.38 trillion).</p>

<p>Given that consumer income growth has trailed behind economic recovery and that people are increasingly likely to save money for future expenses such as mortgage payments, energy bills, child care, and their own uncertain futures, analysts are now more concerned about consumers’ actual ability to spend.</p>

<p>The NIFD report noted that citizens are more inclined to use their savings to pay off debt in order to lower asset risks rather than to consume and invest due to the debt pressure due to their "pessimistic expectations of future economic growth". &nbsp;</p>

<p>Moreover, the Economist Intelligence Unit (EIU) has cautioned that the lack of decisive measures, such as household-focused fiscal transfers, could restrict the effectiveness of Beijing’s increase in big-budget expenditure.</p>

<p><strong>China’s falling exports worries experts</strong></p>

<p>While the primary cause of China’s dramatic decline in exports is thought to be the widespread impact of a global economic slowdown, economists and trade experts quoted by the South China Morning Post caution that the impact of developed countries’ “de-risking” activities should not be understated because “the worst is yet to come”.</p>

<p>After falling by 7.5 per cent in May, Chinese exports experienced their sharpest downturn since the early months of 2020 in June, falling by 12.4 per cent compared to a year earlier.</p>

<p>Except for Russia, where Chinese exports surged by 91 per cent year-on-year, the majority of China’s trading partners, including established and emerging economies, experienced a dip in June. Notably, only 3.4 per cent of China’s total exports were accounted for by Russia.</p>

<p>As per reports, one-fourth of all exports from China are shipped to the US and EU. But since late last year, consumer demand for Chinese goods has declined due to Western economies slowing down and rising prices.</p>

<p>There is also a strong and growing sentiment among fashion companies in the US to “reduce China exposure” due to worries about the risks of forced labour in the supply chain and escalating US-China tensions. South China Morning Post quoted Sheng Lu, an associate professor with the Department of Fashion and Apparel Studies at the University of Delaware, as saying that the impact of the “de-risk” movement on China’s exports should not be underestimated.</p>

<p>However, Phillip Maro from the Economist Intelligence Unit added that many businesses are realising how challenging it is to transition away from the fiercely competitive and sophisticated Chinese Chinese manufacturing ecosystem.</p>

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China's household debt levels have reached record levels, a South China Morning Post report has said. According to a report released by the National Institution for Finance and Development (NIFD), the country’s household debt increased from 61.

China's household debt levels have reached record levels, a South China Morning Post report has said. According to a report released by the National Institution for Finance and Development (NIFD), the country’s household debt increased from 61.9 per cent at the end of last year to 63.5 per cent in the second quarter of 2023. The debt rate is inching closer to the International Monetary Fund (IMF) warning point of 65 per cent, which indicates potential financial risks. The rise in household debt comes amid an economic downturn and the Xi Jinping-led administration's push to increase consumption in order to stimulate the economy. As on June 30, consumer loans, credit card debt, private borrowings, and loans used to fund business operations occupied the majority of China's household debt at 38.6 trillion yuan (US$5.38 trillion). Given that consumer income growth has trailed behind economic recovery and that people are increasingly likely to save money for future expenses such as mortgage payments, energy bills, child care, and their own uncertain futures, analysts are now more concerned about consumers’ actual ability to spend. The NIFD report noted that citizens are more inclined to use their savings to pay off debt in order to lower asset risks rather than to consume and invest due to the debt pressure due to their "pessimistic expectations of future economic growth". Moreover, the Economist Intelligence Unit (EIU) has cautioned that the lack of decisive measures, such as household-focused fiscal transfers, could restrict the effectiveness of Beijing’s increase in big-budget expenditure. China’s falling exports worries experts While the primary cause of China’s dramatic decline in exports is thought to be the widespread impact of a global economic slowdown, economists and trade experts quoted by the South China Morning Post caution that the impact of developed countries’ “de-risking” activities should not be understated because “the worst is yet to come”. After falling by 7.5 per cent in May, Chinese exports experienced their sharpest downturn since the early months of 2020 in June, falling by 12.4 per cent compared to a year earlier. Except for Russia, where Chinese exports surged by 91 per cent year-on-year, the majority of China’s trading partners, including established and emerging economies, experienced a dip in June. Notably, only 3.4 per cent of China’s total exports were accounted for by Russia. As per reports, one-fourth of all exports from China are shipped to the US and EU. But since late last year, consumer demand for Chinese goods has declined due to Western economies slowing down and rising prices. There is also a strong and growing sentiment among fashion companies in the US to “reduce China exposure” due to worries about the risks of forced labour in the supply chain and escalating US-China tensions. South China Morning Post quoted Sheng Lu, an associate professor with the Department of Fashion and Apparel Studies at the University of Delaware, as saying that the impact of the “de-risk” movement on China’s exports should not be underestimated. However, Phillip Maro from the Economist Intelligence Unit added that many businesses are realising how challenging it is to transition away from the fiercely competitive and sophisticated Chinese Chinese manufacturing ecosystem. WATCH WION LIVE HERE

More economic trouble for China?: Household debt rate inches closer to the IMF warning line

<p>Argentina&nbsp;would not use “a single dollar” of its own reserves to repay the International Monetary Fund (IMF), a&nbsp;Reuters report quoted&nbsp;economy minister Sergio Massa&nbsp;as saying on Monday.&nbsp;</p>

<p>As per reports, the South American nation has to repay $2.7 billion to the IMF this week.</p>

<p>In a speech, Massa, who is also running for presidency this October, claimed that the prolonged swap agreement with China and the new loan from the Development Bank of Latin America (CAF) will make it possible.</p>

<p>Reuters quoted Massa as saying, “I want to bring you peace of mind - Argentina is not going to use a single dollar of its reserves to pay today's maturity."&nbsp;</p>

<p>Massa stated that the payback will be completed with a $1.7 billion second tranche of a swap with China and a $1 billion bridge loan from CAF, a step recently taken by Buenos Aires to complete a portion of its June payment to the IMF.</p>

<p>The move is being seen as an attempt to 'de-dollarise'. Already, countries such as Brazil, Argentina, Bangladesh, and India are using Chinese Yuan and bitcoin for international trade and payments.</p>

<p>According to reports from February this year, Brazil and Argentina were in talks to launch a joint currency, called the “sur”. Officials from Argentina and Brazil stated that the true goal of the initiative is to create a new unit of account (a synthetic currency similar to the International Monetary Fund’s Special Drawing Rights) for denominating bilateral trade and financial flows as an alternative to the US dollar.</p>

<p>Despite the near-universal rejection of the idea, the goal at its core—a reduced reliance on the US dollar—is worth considering, as per experts.&nbsp;A push for broader economic union in South America may spur much-needed economic growth, a Centre for International &amp; Strategic Studies report said.&nbsp;</p>

<p>Argentina, which has been struggling with severe economic crisis with sky-high inflation and declining central bank reserves, has been trying to prevent a debt default with the IMF.&nbsp;</p>

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Argentina would not use “a single dollar” of its own reserves to repay the International Monetary Fund (IMF), a Reuters report quoted economy minister Sergio Massa as saying on Monday.

Argentina would not use “a single dollar” of its own reserves to repay the International Monetary Fund (IMF), a Reuters report quoted economy minister Sergio Massa as saying on Monday. As per reports, the South American nation has to repay $2.7 billion to the IMF this week. In a speech, Massa, who is also running for presidency this October, claimed that the prolonged swap agreement with China and the new loan from the Development Bank of Latin America (CAF) will make it possible. Reuters quoted Massa as saying, “I want to bring you peace of mind - Argentina is not going to use a single dollar of its reserves to pay today's maturity." Massa stated that the payback will be completed with a $1.7 billion second tranche of a swap with China and a $1 billion bridge loan from CAF, a step recently taken by Buenos Aires to complete a portion of its June payment to the IMF. The move is being seen as an attempt to 'de-dollarise'. Already, countries such as Brazil, Argentina, Bangladesh, and India are using Chinese Yuan and bitcoin for international trade and payments. According to reports from February this year, Brazil and Argentina were in talks to launch a joint currency, called the “sur”. Officials from Argentina and Brazil stated that the true goal of the initiative is to create a new unit of account (a synthetic currency similar to the International Monetary Fund’s Special Drawing Rights) for denominating bilateral trade and financial flows as an alternative to the US dollar. Despite the near-universal rejection of the idea, the goal at its core—a reduced reliance on the US dollar—is worth considering, as per experts. A push for broader economic union in South America may spur much-needed economic growth, a Centre for International & Strategic Studies report said. Argentina, which has been struggling with severe economic crisis with sky-high inflation and declining central bank reserves, has been trying to prevent a debt default with the IMF. WATCH WION LIVE HERE

Argentina won't use 'one dollar' of reserves to repay IMF, says economy minister 

The International Monetary Fund has raised its 2023 global growth estimates slightly. This is after the world recorded resilient economic activity in the first quarter. However, it warned that persistent challenges were dampening the medium-term outlook. The world economy is now projected to grow at 3.0% in 2023. That's up 0.2 percentage point from its April forecast. Its outlook for 2024 remained unchanged, which was also at 3.0%.

IMF provides a glimmer of hope | World DNA

<p>The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation.</p>

<p>The Indian government had banned the export of non-basmati white rice on July 20, in order to enhance domestic supply and stabilise local retail prices during the approaching festive season. The export policy was amended from ‘Free with export duty of 20%’ to ‘Prohibited’ immediately.</p>

<p>IMF’s chief economist, Pierre-Oliver Gourinchas, said in a press conference that given the environment, restriction in the export of rice would increase food prices globally. This could also lead to counter measures.</p>

<p>"So, they are certainly something that we would encourage the removal of these types of export restrictions, because they can be harmful globally,” PTI quoted Gourinchas as saying.</p>

<p>In a statement, India’s food ministry had said that no changes would be made in the export policy of par-boiled and basmati rice, which constitutes a major chunk of rice exports from the country.</p>

<p>Total exports of non- basmati rice from India in financial year 2022-23 was $4.2 million in comparison to $2.62 million last year. Non-basmati white rice accounts for about 25 per cent of the total rice exported from India, with major exports to the US, Thailand, Italy, Spain and Sri Lanka.</p>

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<p style="margin:0cm 0cm 10pt">&nbsp;</p>


The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation.

The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation. The Indian government had banned the export of non-basmati white rice on July 20, in order to enhance domestic supply and stabilise local retail prices during the approaching festive season. The export policy was amended from ‘Free with export duty of 20%’ to ‘Prohibited’ immediately. IMF’s chief economist, Pierre-Oliver Gourinchas, said in a press conference that given the environment, restriction in the export of rice would increase food prices globally. This could also lead to counter measures. "So, they are certainly something that we would encourage the removal of these types of export restrictions, because they can be harmful globally,” PTI quoted Gourinchas as saying. In a statement, India’s food ministry had said that no changes would be made in the export policy of par-boiled and basmati rice, which constitutes a major chunk of rice exports from the country. Total exports of non- basmati rice from India in financial year 2022-23 was $4.2 million in comparison to $2.62 million last year. Non-basmati white rice accounts for about 25 per cent of the total rice exported from India, with major exports to the US, Thailand, Italy, Spain and Sri Lanka. WATCH WION LIVE HERE

IMF urges India to remove restrictions on rice exports over global inflation concerns

<p>The International Monetary Fund (IMF), on Tuesday (July 25) slightly raised the outlook for global growth this year given the resilient economy, particularly, service sector activity in the first quarter of 2023. However, the global lender also warned about the persistent challenges which are dampening the medium-term outlook. Meanwhile, India’s projection of economic growth is at 6.1 per cent in this year.&nbsp;</p>

<h2><strong>IMF about the growth forecast</strong></h2>

<p>In its latest, World Economic Outlook (WEO), the IMF projected global real GDP growth of 3.0 per cent for this year, which is 0.2 percentage points higher than its April forecast. But the global growth is expected to stay there and the forecast for 2024 remained unchanged at 3.0 per cent, amid weak growth among the world’s advanced economies.&nbsp;</p>

<p>The growth forecast was slightly raised as the IMF noted ease in soaring inflation as well as the acute stress that the banking sector witnessed. “We’re not out of the woods yet and growth remains on the low side,” IMF Chief Economist Pierre-Olivier Gourinchas told AFP, in an interview.&nbsp;</p>

<p>“What we are seeing when we look five years out is actually close to 3.0%, maybe a little bit above 3.0%. This is a significant slowdown compared to what we had pre-COVID,” the IMF chief economist told Reuters.&nbsp;</p>

<p>The global economic growth is nearly half of what it was in two years with 6.3 per cent and also lower than 3.5 per cent in 2022, the WEO noted. Gourinchas told Reuters how the lowered growth is also related to the ageing of the global population, particularly in countries like China, Japan, and Germany.</p>

<h2><strong>Lower inflation</strong></h2>

<p>According to the IMF, the global headline inflation may fall to 6.8 per cent this year, from 8.7 per cent in 2022 and may witness a further drop to 5.2 per cent next year. On the other hand, core inflation would decline more gradually, with 6.0 per cent in 2023 from 6.5 per cent, last year to 4.7 per cent in 2024.&nbsp;</p>

<p>Gourinchas told Reuters we might have to wait until the end of 2024 or early 2025 to see the drop in inflation which the central bankers have targeted and the current cycle of monetary tightening would end.</p>

<p>However, the IMF notes that if the war in Ukraine were to intensify, given Russia’s backing out of the Black Sea grain deal, and the world witnesses a rise in extreme weather events due to the El Nino weather pattern, it could raise the prices of commodities. This in turn could trigger further rate hikes.</p>

<p>The IMF has said the world is a better place than it was and also hailed the World Health Organization’s decision to end the global health emergency due to COVID-19, which has reduced shipping costs and delivery times to pre-pandemic levels.&nbsp;</p>

<h2><strong>‘Broadly stable’ outlook for EMDEs</strong></h2>

<p>In the emerging markets developing economies (EMDEs), a growth of 4.0 per cent is expected in 2023 and 4.1 per cent in 2024, while the overall outlook is “broadly stable,” said the IMF. Additionally, the WEO also noted that much of the global growth this year will be contributed by EMDEs like India and China, with substantially slow economic activity in advanced economies.&nbsp;</p>

<p>The report noted that China’s growth forecast for this year remained unchanged at 5.2 per cent. Meanwhile, advanced economies are expected to grow 1.5 per cent in 2023, which was raised by 0.2 percentage points from April and 1.4 percent in 2024.&nbsp;</p>

<h2><strong>What about India?</strong></h2>

<p>India’s growth is projected to be 6.1 per cent this year, which is up by 0.2 percentage points since the previous forecast in April. The report attributed this growth to “momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment.”</p>

<p><em>(With inputs from agencies)&nbsp;</em><br />
&nbsp;</p>

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The International Monetary Fund (IMF), on Tuesday (July 25) slightly raised the outlook for global growth this year given the resilient economy, particularly, service sector activity in the first quarter of 2023.

The International Monetary Fund (IMF), on Tuesday (July 25) slightly raised the outlook for global growth this year given the resilient economy, particularly, service sector activity in the first quarter of 2023. However, the global lender also warned about the persistent challenges which are dampening the medium-term outlook. Meanwhile, India’s projection of economic growth is at 6.1 per cent in this year. IMF about the growth forecast In its latest, World Economic Outlook (WEO), the IMF projected global real GDP growth of 3.0 per cent for this year, which is 0.2 percentage points higher than its April forecast. But the global growth is expected to stay there and the forecast for 2024 remained unchanged at 3.0 per cent, amid weak growth among the world’s advanced economies. The growth forecast was slightly raised as the IMF noted ease in soaring inflation as well as the acute stress that the banking sector witnessed. “We’re not out of the woods yet and growth remains on the low side,” IMF Chief Economist Pierre-Olivier Gourinchas told AFP, in an interview. “What we are seeing when we look five years out is actually close to 3.0%, maybe a little bit above 3.0%. This is a significant slowdown compared to what we had pre-COVID,” the IMF chief economist told Reuters. The global economic growth is nearly half of what it was in two years with 6.3 per cent and also lower than 3.5 per cent in 2022, the WEO noted. Gourinchas told Reuters how the lowered growth is also related to the ageing of the global population, particularly in countries like China, Japan, and Germany. Lower inflation According to the IMF, the global headline inflation may fall to 6.8 per cent this year, from 8.7 per cent in 2022 and may witness a further drop to 5.2 per cent next year. On the other hand, core inflation would decline more gradually, with 6.0 per cent in 2023 from 6.5 per cent, last year to 4.7 per cent in 2024. Gourinchas told Reuters we might have to wait until the end of 2024 or early 2025 to see the drop in inflation which the central bankers have targeted and the current cycle of monetary tightening would end. However, the IMF notes that if the war in Ukraine were to intensify, given Russia’s backing out of the Black Sea grain deal, and the world witnesses a rise in extreme weather events due to the El Nino weather pattern, it could raise the prices of commodities. This in turn could trigger further rate hikes. The IMF has said the world is a better place than it was and also hailed the World Health Organization’s decision to end the global health emergency due to COVID-19, which has reduced shipping costs and delivery times to pre-pandemic levels. ‘Broadly stable’ outlook for EMDEs In the emerging markets developing economies (EMDEs), a growth of 4.0 per cent is expected in 2023 and 4.1 per cent in 2024, while the overall outlook is “broadly stable,” said the IMF. Additionally, the WEO also noted that much of the global growth this year will be contributed by EMDEs like India and China, with substantially slow economic activity in advanced economies. The report noted that China’s growth forecast for this year remained unchanged at 5.2 per cent. Meanwhile, advanced economies are expected to grow 1.5 per cent in 2023, which was raised by 0.2 percentage points from April and 1.4 percent in 2024. What about India? India’s growth is projected to be 6.1 per cent this year, which is up by 0.2 percentage points since the previous forecast in April. The report attributed this growth to “momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment.” (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

IMF raises 2023 global economic growth forecast to 3 per cent; India remains bright spot

Cash-strapped Pakistan is outsourcing its major airports' operations as the country contends with an economic crisis that has sent its foreign exchange reserves plummeting. Pakistan is to proceed with the sale by a tender of a contract to manage Islamabad Airport after consultations with the World Bank's International Finance Corporation.

Cash-strapped Pakistan to lease out Islamabad Airport

<p>Sri Lankan parliament on Wednesday (July 19) approved a crucial anti-corruption bill without a vote. The bill passed by the 225-member parliament of the South Asian nation is aimed at improving governance in the crisis-hit country. The process of passage of the bill is part of requirements linked to USD 2.9 billion bailout from the International Monetary Fund (IMF).</p>

<p>"The bill is passed with amendments," Sri Lanka parliament Speaker Mahinda Yapa Abeywardena told lawmakers after more than two dozen pages of amendments were included into the draft legislation during the morning session.</p>

<p>Last year, Sri Lanka experienced an unprecedented economic crisis in more than 70 years after foreign exchange reserves of the country became dangerously low. This forced the island nation to default on its foreign debt. This made inflation to increase dramatically. The currency of the country depreciated rapidly.</p>

<p><strong>Watch | Sri Lanka to consider trade in Indian rupee</strong></p>

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<p>There appeared to be some sign of hope after Sri Lanka locked down a USD 2.9 billion programme with the IMF in March. This included fresh anti-corruption legislation in order to strengthen governance and to bring it in line with the&nbsp;United Nations Convention Against Corruption.</p>

<p>This is the first time an IMF programme has been linked to such a measure in Asia.</p>

<h2><strong>'I am Ranil Wickremesinghe, not Ranil Rajapaksa'</strong></h2>

<p>Meanwhile, Sri Lankan President Ranil Wickremesinghe made an assertive statement. Wickremesinghe, who became president of the country after the economic crisis, sought to distance himself from former president Mahinda Rajapaksa. Wickremesinghe was speaking with representatives of Tamil political parties when he made the statement.</p>

<p><strong>Also Read | <a href="https://www.wionews.com/south-asia/i-am-ranil-wickremesinghe-not-ranil-rajapaksa-asserts-sri-lanka-president-617364">'I am Ranil Wickremesinghe, not Ranil Rajapaksa', asserts Sri Lanka president before India visit</a></strong></p>

<p>The statement from Wickremesinghe came just a day ahead of his trip to India which had helped Sri Lanka stabilise in the initial aftermath of the economic crisis by extending monetary and other help.</p>

<p>Sri Lankan president was speaking with Tamil political parties who have urged him to implement the 13th Amendment.&nbsp;</p>

<p>The 13th Amendment is the outcome of an agreement reached between India and Sri Lanka following the deal of 1987. It talks about the devolution of land and police powers to the provinces in Sri Lanka.</p>

<p>Wickremesinghe said that the 13th Amendment will be fully implemented but without police powers.</p>

<p>Sri Lanka, a Sinhalese-majority nation has a minority Tamil population, especially in the country's north and east.</p>

<p>The tension between the community even resulted in a 30-year military campaign during which hardline sections among the Sri Lankan Tamils formed LTTE (Liberation Tigers of Tamil Eelam). The LTTE ran a military campaign for a separate Tamil nation. LTTE collapsed in 2009 after a decisive operation by the Sri Lankan military that saw the leader of LTTE Prabhakaran getting killed.</p>

<p><em>(With inputs from agencies)</em></p>

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Sri Lankan parliament on Wednesday (July 19) approved a crucial anti-corruption bill without a vote. The bill passed by the 225-member parliament of the South Asian nation is aimed at improving governance in the crisis-hit country.

Sri Lankan parliament on Wednesday (July 19) approved a crucial anti-corruption bill without a vote. The bill passed by the 225-member parliament of the South Asian nation is aimed at improving governance in the crisis-hit country. The process of passage of the bill is part of requirements linked to USD 2.9 billion bailout from the International Monetary Fund (IMF). "The bill is passed with amendments," Sri Lanka parliament Speaker Mahinda Yapa Abeywardena told lawmakers after more than two dozen pages of amendments were included into the draft legislation during the morning session. Last year, Sri Lanka experienced an unprecedented economic crisis in more than 70 years after foreign exchange reserves of the country became dangerously low. This forced the island nation to default on its foreign debt. This made inflation to increase dramatically. The currency of the country depreciated rapidly. Watch | Sri Lanka to consider trade in Indian rupee × There appeared to be some sign of hope after Sri Lanka locked down a USD 2.9 billion programme with the IMF in March. This included fresh anti-corruption legislation in order to strengthen governance and to bring it in line with the United Nations Convention Against Corruption. This is the first time an IMF programme has been linked to such a measure in Asia. 'I am Ranil Wickremesinghe, not Ranil Rajapaksa' Meanwhile, Sri Lankan President Ranil Wickremesinghe made an assertive statement. Wickremesinghe, who became president of the country after the economic crisis, sought to distance himself from former president Mahinda Rajapaksa. Wickremesinghe was speaking with representatives of Tamil political parties when he made the statement. Also Read | 'I am Ranil Wickremesinghe, not Ranil Rajapaksa', asserts Sri Lanka president before India visit The statement from Wickremesinghe came just a day ahead of his trip to India which had helped Sri Lanka stabilise in the initial aftermath of the economic crisis by extending monetary and other help. Sri Lankan president was speaking with Tamil political parties who have urged him to implement the 13th Amendment. The 13th Amendment is the outcome of an agreement reached between India and Sri Lanka following the deal of 1987. It talks about the devolution of land and police powers to the provinces in Sri Lanka. Wickremesinghe said that the 13th Amendment will be fully implemented but without police powers. Sri Lanka, a Sinhalese-majority nation has a minority Tamil population, especially in the country's north and east. The tension between the community even resulted in a 30-year military campaign during which hardline sections among the Sri Lankan Tamils formed LTTE (Liberation Tigers of Tamil Eelam). The LTTE ran a military campaign for a separate Tamil nation. LTTE collapsed in 2009 after a decisive operation by the Sri Lankan military that saw the leader of LTTE Prabhakaran getting killed. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Sri Lankan parliament passes anti-corruption bill, fulfills IMF condition

The International Monetary Fund(IMF) has released a staff report about Pakistan's poor handling of the economy and its inability to maintain steady operations. The IMF reports also uncover the conditions tied to a $3 bn standby arrangement package provided to Pakistan with risk to program implementation exceptionally high, policy slippage, and delays in external financing disbursement. This could jeopardise the country's macro-financial stability and debt sustainability.

IMF urges tightening measures as Pakistan's economy falters

<p>A little more than a week after approving&nbsp;a $3 billion bailout programme for Pakistan, the International Monetary Fund (IMF) has said the country needs&nbsp;another programme and support from other&nbsp;multilateral lenders. Citing that the South Asian country was facing 'exceptionally high risks', the lender made the assessment&nbsp;in a recently released 120-page report.</p>

<p>“Resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current programme period,” said IMF, adding that a successor arrangement was needed to restore the country's medium-term viability and capacity to repay.&nbsp;</p>

<p>"Pakistan’s economic challenges are complex and multifaceted, and risks are exceptionally high. Addressing them requires steadfast implementation of agreed policies, as well as continued financial support from external partners," it added.</p>

<p>The report published is based on the&nbsp;Memorandum of Economic and Fiscal Policies (MEFP)&nbsp;signed by Finance Minister Ishaq Dar and State Bank Governor Jameel Ahmed.</p>

<h2><strong>Pakistan's cash-crisis&nbsp;</strong></h2>

<p>The Shehbaz Sharif government, despite receiving the green light for the IMF bailout package, is staring at a bleak economic future with forex reserves plummeting.</p>

<p>Pakistan's cash crisis can be understood by the fact that the government has fast-tracked its plans to outsource operations at&nbsp;the Islamabad International Airport (IIA).&nbsp;</p>

<p>FM&nbsp;Dar, last week, chaired a meeting of the steering committee and directed the stakeholders to finalise the formalities of outsourcing the operations by August 12, a day before the current government's tenure ends.&nbsp;</p>

<p><a href="https://www.wionews.com/vidCrisis-hit%20Pakistan%20strikes%20$3bn%20IMF%20bailout%20dealeos/crisis-hit-pakistan-strikes-3bn-imf-bailout-deal-610833" target="_blank"><strong>WATCH | Crisis-hit Pakistan strikes $3bn IMF bailout deal</strong></a></p>

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<h2><strong>The bailout package</strong></h2>

<p>Last week, after months of negotiations, Pakistan managed to clinch a last-minute relief from IMF on an initial $3 billion loan. The development lowers the risk of a sovereign debt default as the South Asian nation continues to grapple with sky-high inflation and staggeringly low exchange reserves.&nbsp;</p>

<p>The agreement aims to support Pakistan's purported efforts to stabilise the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners.</p>

<p><a href="https://www.wionews.com/south-asia/pakistan-gets-last-minute-relief-from-imf-to-avoid-sovereign-default-610325"><strong>Also read |&nbsp;Pakistan secures initial relief of $3bn from IMF in its bid to avoid sovereign default</strong></a></p>

<p>"The new Stand-By Arrangement (SBA) will also create space for social and development spending through improved domestic revenue mobilisation and careful spending execution to help address the needs of the Pakistani people," the IMF said in an official statement.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

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A little more than a week after approving a $3 billion bailout programme for Pakistan, the International Monetary Fund (IMF) has said the country needs another programme and support from other multilateral lenders.

A little more than a week after approving a $3 billion bailout programme for Pakistan, the International Monetary Fund (IMF) has said the country needs another programme and support from other multilateral lenders. Citing that the South Asian country was facing 'exceptionally high risks', the lender made the assessment in a recently released 120-page report. “Resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current programme period,” said IMF, adding that a successor arrangement was needed to restore the country's medium-term viability and capacity to repay. "Pakistan’s economic challenges are complex and multifaceted, and risks are exceptionally high. Addressing them requires steadfast implementation of agreed policies, as well as continued financial support from external partners," it added. The report published is based on the Memorandum of Economic and Fiscal Policies (MEFP) signed by Finance Minister Ishaq Dar and State Bank Governor Jameel Ahmed. Pakistan's cash-crisis The Shehbaz Sharif government, despite receiving the green light for the IMF bailout package, is staring at a bleak economic future with forex reserves plummeting. Pakistan's cash crisis can be understood by the fact that the government has fast-tracked its plans to outsource operations at the Islamabad International Airport (IIA). FM Dar, last week, chaired a meeting of the steering committee and directed the stakeholders to finalise the formalities of outsourcing the operations by August 12, a day before the current government's tenure ends. WATCH | Crisis-hit Pakistan strikes $3bn IMF bailout deal × The bailout package Last week, after months of negotiations, Pakistan managed to clinch a last-minute relief from IMF on an initial $3 billion loan. The development lowers the risk of a sovereign debt default as the South Asian nation continues to grapple with sky-high inflation and staggeringly low exchange reserves. The agreement aims to support Pakistan's purported efforts to stabilise the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. Also read | Pakistan secures initial relief of $3bn from IMF in its bid to avoid sovereign default "The new Stand-By Arrangement (SBA) will also create space for social and development spending through improved domestic revenue mobilisation and careful spending execution to help address the needs of the Pakistani people," the IMF said in an official statement. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan needs another bailout package, faces ‘exceptionally high’ risks, warns IMF

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