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

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

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

Imperative to resolve Brexit uncertainty immediately: IMF

Saudi Arabia is planning to set up a $10 billion oil refinery in Pakistan's deepwater port of Gwadar, the Saudi energy minister said on Saturday.

"Saudi Arabia wants to make Pakistan's economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor," Saudi Energy Minister Khalid al-Falih told reporters in Gwadar.

Responding to Saudi Arabia's aid, Pakistan's Petroleum Minister Ghulam Sarwar Khan said, "With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC".

Pakistan which is suffering from a <a href="http://www.wionews.com/india-news/pakistan-trying-to-deflect-attention-from-financial-crisis-by-mainstreaming-terrorists-india-189631">major financial crisis</a> has been making efforts to attract investment and other financial support.

Since the government of Prime Minister Imran Khan came to power in August, Pakistan has secured economic assistance packages from Saudi Arabia, the United Arab Emirates and China.

In November, <a href="http://www.wionews.com/world/pakistan-not-approaching-imf-for-new-bailout-programme-considers-alternative-options-finance-minister-189892">Pakistan extended talks with the International Monetary Fund</a> as it seeks its 13th bailout since the late 1980s to deal with a looming balance of payments crisis.

Saudi Arabia had earlier offered a $6 billion package to Pakistan including aid to finance crude imports.

Khalid al-Falih&nbsp;also said that Crown Prince Mohammad bin Salman would visit Pakistan in February to sign the agreement adding that Saudi Arabia would also invest in other sectors.

Besides Saudi Arabia, <a href="http://www.wionews.com/world/how-china-is-stepping-up-investments-in-west-asia-189455">China</a>&nbsp;extended $60 billion as part of the China Pakistan Economic Corridor (CPEC) that involves building power stations, major highways, new and upgraded railways and higher capacity ports.

Beijing's support would help Pakistan to emerge as a major overland route linking western China to the world.

Last month, the UAE said it will soon give $3 billion to Islamabad.

(With inputs from Reuters)

Saudi Arabia is planning to set up a $10 billion oil refinery in Pakistan's deepwater port of Gwadar, the Saudi energy minister said on Saturday. "Saudi Arabia wants to make Pakistan's economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor," Saudi Energy Minister Khalid al-Falih told reporters in Gwadar.

Saudi Arabia is planning to set up a $10 billion oil refinery in Pakistan's deepwater port of Gwadar, the Saudi energy minister said on Saturday. "Saudi Arabia wants to make Pakistan's economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor," Saudi Energy Minister Khalid al-Falih told reporters in Gwadar. Responding to Saudi Arabia's aid, Pakistan's Petroleum Minister Ghulam Sarwar Khan said, "With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC". Pakistan which is suffering from a major financial crisis has been making efforts to attract investment and other financial support. Since the government of Prime Minister Imran Khan came to power in August, Pakistan has secured economic assistance packages from Saudi Arabia, the United Arab Emirates and China. In November, Pakistan extended talks with the International Monetary Fund as it seeks its 13th bailout since the late 1980s to deal with a looming balance of payments crisis. Saudi Arabia had earlier offered a $6 billion package to Pakistan including aid to finance crude imports. Khalid al-Falih also said that Crown Prince Mohammad bin Salman would visit Pakistan in February to sign the agreement adding that Saudi Arabia would also invest in other sectors. Besides Saudi Arabia, China extended $60 billion as part of the China Pakistan Economic Corridor (CPEC) that involves building power stations, major highways, new and upgraded railways and higher capacity ports. Beijing's support would help Pakistan to emerge as a major overland route linking western China to the world. Last month, the UAE said it will soon give $3 billion to Islamabad. (With inputs from Reuters)

Saudi Arabia to set up $10 billion oil refinery in Pakistan

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

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

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

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

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

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

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

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

The Trump administration is making all efforts to ensure that any IMF loan to <a href="http://www.wionews.com/india-news/india-lodges-protest-against-pak-over-pok-ministers-presence-in-saarc-meet-in-islamabad-183617">Pakistan is not used to repay</a> its Chinese debt, a US official told lawmakers Wednesday.

Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

A recent meeting between the IMF and Pakistan ended in a stalemate.

The US feels that the huge Chinese debt was responsible for the economic challenges in Pakistan.&nbsp;

"We are working and making clear within the IMF that if it were going to supply any funding to Pakistan that it would not be used to repay Chinese loans," David Malpass, Under Secretary of Treasury for International Affairs, told lawmakers during a Congressional hearing.

There are concerns among American lawmakers that the IMF money could be used to repay Chinese debt.&nbsp;

Malpass said that the US is also trying to make sure that Pakistan changes its economic programme so that it's not a failure in the future.&nbsp;

During the House Financial Services Committee hearing on 'Evaluating the Effectiveness of the International Financial Institutions' Congressman Ed Royce said Pakistan is currently seeking a multibillion-dollar IMF bailout.

"In July, Secretary (of State, Mike) Pompeo said there's no rationale for IMF tax dollars and those associated with American dollars that are part of IMF funding for those to go to bailout Chinese bond holders or China itself," he said.

"We will make strong efforts, and I believe successful efforts, to make sure that what you describe doesn't happen, meaning a payoff of Beijing via Islamabad," Malpass said.&nbsp;

Malpass said that IMF loans tend to be shorter maturity loans and China's loans to Pakistan have been longer maturity loans.&nbsp;

"So from the standpoint of that money being used, we will look for was that that roundtripping does not happen the way you described," he said.

"But important in this, is the structural reforms in Pakistan that are necessary for it to stop being such a poor country," Malpass said.

The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt, a US official told lawmakers Wednesday.

The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt, a US official told lawmakers Wednesday. Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. A recent meeting between the IMF and Pakistan ended in a stalemate. The US feels that the huge Chinese debt was responsible for the economic challenges in Pakistan. "We are working and making clear within the IMF that if it were going to supply any funding to Pakistan that it would not be used to repay Chinese loans," David Malpass, Under Secretary of Treasury for International Affairs, told lawmakers during a Congressional hearing. There are concerns among American lawmakers that the IMF money could be used to repay Chinese debt. Malpass said that the US is also trying to make sure that Pakistan changes its economic programme so that it's not a failure in the future. During the House Financial Services Committee hearing on 'Evaluating the Effectiveness of the International Financial Institutions' Congressman Ed Royce said Pakistan is currently seeking a multibillion-dollar IMF bailout. "In July, Secretary (of State, Mike) Pompeo said there's no rationale for IMF tax dollars and those associated with American dollars that are part of IMF funding for those to go to bailout Chinese bond holders or China itself," he said. "We will make strong efforts, and I believe successful efforts, to make sure that what you describe doesn't happen, meaning a payoff of Beijing via Islamabad," Malpass said. Malpass said that IMF loans tend to be shorter maturity loans and China's loans to Pakistan have been longer maturity loans. "So from the standpoint of that money being used, we will look for was that that roundtripping does not happen the way you described," he said. "But important in this, is the structural reforms in Pakistan that are necessary for it to stop being such a poor country," Malpass said.

No IMF money to Pakistan to repay Chinese debt: US

The IMF has demanded <a href="http://www.wionews.com/south-asia/suspended-security-assistance-as-pak-failed-to-act-on-militant-safe-havens-white-house-178294">Pakistan provide all details </a>of China's financial support to the cash-strapped country to avail a bailout package from it, according to media reports.&nbsp;

The International Monetary Fund mission is in <a href="http://www.wionews.com/south-asia/pakistan-pm-imran-khans-defence-of-the-political-u-turn-sparks-mirth-178340">Pakistan and holding talks</a> with officials over arranging an unspecified amount to help in addressing the balance of payment issue.

As talks enter the final phase, the IMF set stricter conditions for Pakistan to implement in exchange for a bailout package much needed for economic revival.

Some of the major conditions include the imposition of more taxes worth Rs 150 billion, further reduction in the rupee value as well as a tighter monetary policy. It also sought from Pakistan all details of Chinese financial&nbsp;support for any bailout package to Pakistan.&nbsp;

Led by its mission chief Harald Finger, the IMF delegation is holding meetings with government officials to know their viewpoint on the reforms.&nbsp;

There was no indication that the two sides are close to any agreement, Dawn reported.

Finance Minister Asad Umar said on Monday that the talks were moving ahead positively but there were still differences, the report said.

"There are still gaps in the position of the IMF and the position that we have," Umar said after a series of meetings with an IMF team.

Umar said the IMF visit would conclude on Tuesday and he had no funding emergency to worry about day after tomorrow.

He said that $1 billion of the $3 billion committed by Saudi Arabia had been remitted to the State Bank of Pakistan on Monday and the remaining $2 billion would follow over the next few days.

Pakistan looks forward to about $6 billion financial bailouts for averting its balance of payments crisis

Informed sources said the two sides had a wide gap in their positions on the need for increase in electricity tariff, upward revision in the revenue target and additional tax measures on matters relating to Chinese assistance and its impact both inflow and outflow.

The sources said the IMF also demanded that the provincial governments finance the Benazir Income Support Programme (BISP), instead of the federal government, and wanted committed cash surpluses to minimise the consolidated fiscal deficit.&nbsp;

Regarding the Chinese financing, the minister said there was complete transparency in the Chinese assistance and whatever the external debt was would have to be shared with the IMF as part of the programme, the report said.

The sources said the IMF mission wanted a clear roadmap for elimination of power sector circular debt that currently stood at Rs1.2tr and welcomed administrative measures to recover some arrears, but insisted on further increasing electricity rates for full cost recovery of power supply, it said.

The sources said the IMF team was not satisfied with the power sector reforms plan and wanted the government to surrender its powers to set electricity tariff and let these be independently dealt with by the power regulator.&nbsp;

Pakistan's current account deficit widened 43 per cent to $18 billion in the fiscal year that ended in June, while the fiscal deficit has ballooned to 6.6 per cent of gross domestic product.

The IMF has demanded Pakistan provide all details of China's financial support to the cash-strapped country to avail a bailout package from it, according to media reports.

The IMF has demanded Pakistan provide all details of China's financial support to the cash-strapped country to avail a bailout package from it, according to media reports. The International Monetary Fund mission is in Pakistan and holding talks with officials over arranging an unspecified amount to help in addressing the balance of payment issue. As talks enter the final phase, the IMF set stricter conditions for Pakistan to implement in exchange for a bailout package much needed for economic revival. Some of the major conditions include the imposition of more taxes worth Rs 150 billion, further reduction in the rupee value as well as a tighter monetary policy. It also sought from Pakistan all details of Chinese financial support for any bailout package to Pakistan. Led by its mission chief Harald Finger, the IMF delegation is holding meetings with government officials to know their viewpoint on the reforms. There was no indication that the two sides are close to any agreement, Dawn reported. Finance Minister Asad Umar said on Monday that the talks were moving ahead positively but there were still differences, the report said. "There are still gaps in the position of the IMF and the position that we have," Umar said after a series of meetings with an IMF team. Umar said the IMF visit would conclude on Tuesday and he had no funding emergency to worry about day after tomorrow. He said that $1 billion of the $3 billion committed by Saudi Arabia had been remitted to the State Bank of Pakistan on Monday and the remaining $2 billion would follow over the next few days. Pakistan looks forward to about $6 billion financial bailouts for averting its balance of payments crisis Informed sources said the two sides had a wide gap in their positions on the need for increase in electricity tariff, upward revision in the revenue target and additional tax measures on matters relating to Chinese assistance and its impact both inflow and outflow. The sources said the IMF also demanded that the provincial governments finance the Benazir Income Support Programme (BISP), instead of the federal government, and wanted committed cash surpluses to minimise the consolidated fiscal deficit. Regarding the Chinese financing, the minister said there was complete transparency in the Chinese assistance and whatever the external debt was would have to be shared with the IMF as part of the programme, the report said. The sources said the IMF mission wanted a clear roadmap for elimination of power sector circular debt that currently stood at Rs1.2tr and welcomed administrative measures to recover some arrears, but insisted on further increasing electricity rates for full cost recovery of power supply, it said. The sources said the IMF team was not satisfied with the power sector reforms plan and wanted the government to surrender its powers to set electricity tariff and let these be independently dealt with by the power regulator. Pakistan's current account deficit widened 43 per cent to $18 billion in the fiscal year that ended in June, while the fiscal deficit has ballooned to 6.6 per cent of gross domestic product.

IMF demands details of Pakistan's financial assistance deal with China: Report

The International Monetary Fund (IMF) said Thursday it feared the consequences of a possible "contagion" of Italy's economic woes to European countries with "weaker macroeconomic fundamentals."

Noting the "four-year high" in Italian sovereign bond yields, the IMF said, "spillovers to other markets have been fairly contained."

"But there is appreciable uncertainty, and contagion from future stress could be notable, especially for economies with weaker macroeconomic fundamentals and limited policy buffers," the IMF said in its autumn forecast for Europe.

Italy is under massive pressure since the European Commission on October 23 rejected its 2019 budget in a historic move, giving the ruling populist coalition in Rome until November 13 to present changes.

Failing that, Brussels could put Italy into something called the "excess deficit procedure", a complicated process that could eventually lead to a fine of 0.2 per cent of the country's GDP.

The Italian government -- a coalition of the far-right League and the anti-establishment Five Star Movement -- plans to run a public deficit of 2.4 per cent of GDP, three times the target of its centre-left predecessor.

The coalition's 2019 budget is based on an estimate of annual growth of 1.5 per cent -- a figure considered optimistic by the IMF, which has forecast only one per cent, and the Commission, which expects 1.2 per cent.

Italian leaders insist the low growth rate is all the more reason to kickstart the economy through a spending spree, but Brussels fears the rising deficit could further feed Italy's exploding debt.

Italy already owes 2.3 trillion euros ($2.6 trillion), a sum equivalent to 131 per cent of its GDP. Even if Brussels fails to punish Rome, many assume the markets will.

Italy, as well as Turkey the IMF noted, "should prioritise measures that reduce fiscal deficits toward their medium-term targets and lower debt."

The International Monetary Fund (IMF) said Thursday it feared the consequences of a possible "contagion" of Italy's economic woes to European countries with "weaker macroeconomic fundamentals.

The International Monetary Fund (IMF) said Thursday it feared the consequences of a possible "contagion" of Italy's economic woes to European countries with "weaker macroeconomic fundamentals." Noting the "four-year high" in Italian sovereign bond yields, the IMF said, "spillovers to other markets have been fairly contained." "But there is appreciable uncertainty, and contagion from future stress could be notable, especially for economies with weaker macroeconomic fundamentals and limited policy buffers," the IMF said in its autumn forecast for Europe. Italy is under massive pressure since the European Commission on October 23 rejected its 2019 budget in a historic move, giving the ruling populist coalition in Rome until November 13 to present changes. Failing that, Brussels could put Italy into something called the "excess deficit procedure", a complicated process that could eventually lead to a fine of 0.2 per cent of the country's GDP. The Italian government -- a coalition of the far-right League and the anti-establishment Five Star Movement -- plans to run a public deficit of 2.4 per cent of GDP, three times the target of its centre-left predecessor. The coalition's 2019 budget is based on an estimate of annual growth of 1.5 per cent -- a figure considered optimistic by the IMF, which has forecast only one per cent, and the Commission, which expects 1.2 per cent. Italian leaders insist the low growth rate is all the more reason to kickstart the economy through a spending spree, but Brussels fears the rising deficit could further feed Italy's exploding debt. Italy already owes 2.3 trillion euros ($2.6 trillion), a sum equivalent to 131 per cent of its GDP. Even if Brussels fails to punish Rome, many assume the markets will. Italy, as well as Turkey the IMF noted, "should prioritise measures that reduce fiscal deficits toward their medium-term targets and lower debt."

IMF fears possible Italy 'contagion' to weaker European economies

An International Monetary Fund team arrived in Islamabad Wednesday for talks on a possible IMF bailout, even as Pakistan insisted it had solved its immediate balance of payments crisis.

Speaking shortly after Prime Minister Imran Khan returned from Beijing, Pakistan's finance minister said Tuesday that assurances from China -- combined with a pledge made by Saudi Arabia last month -- meant that Pakistan's immediate fiscal woes were "over".&nbsp;

"We had a gap of $12 billion and in that $12 billion, six billion came from Saudi Arabia and the rest came from China," Asad Umar told reporters, without specifying the nature of the Chinese assistance.

The finance secretary and the governor of the state bank will attend a meeting in Beijing on Friday to finalise the terms of the assistance, he added.

Pakistan secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a balance of payments lifeline during Khan's visit in October.

Despite the pledges, the ministry of finance said the Pakistan would still seek broader IMF support for the government's long term economic planning.

Since taking power in August, former cricketer Khan has been searching for ways to rally a struggling economy hit by inflation and shore up the country's dwindling foreign currency reserves.&nbsp;

As well as a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, the new prime minister has also made overtures to the IMF -- which has bailed Pakistan out repeatedly since the 1980s.

However, Islamabad received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing.

Islamabad -- which last received an IMF bailout in 2013 to the tune of $6.6 billion -- has refuted these claims.&nbsp; 
&nbsp;

An International Monetary Fund team arrived in Islamabad Wednesday for talks on a possible IMF bailout, even as Pakistan insisted it had solved its immediate balance of payments crisis.

An International Monetary Fund team arrived in Islamabad Wednesday for talks on a possible IMF bailout, even as Pakistan insisted it had solved its immediate balance of payments crisis. Speaking shortly after Prime Minister Imran Khan returned from Beijing, Pakistan's finance minister said Tuesday that assurances from China -- combined with a pledge made by Saudi Arabia last month -- meant that Pakistan's immediate fiscal woes were "over". "We had a gap of $12 billion and in that $12 billion, six billion came from Saudi Arabia and the rest came from China," Asad Umar told reporters, without specifying the nature of the Chinese assistance. The finance secretary and the governor of the state bank will attend a meeting in Beijing on Friday to finalise the terms of the assistance, he added. Pakistan secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a balance of payments lifeline during Khan's visit in October. Despite the pledges, the ministry of finance said the Pakistan would still seek broader IMF support for the government's long term economic planning. Since taking power in August, former cricketer Khan has been searching for ways to rally a struggling economy hit by inflation and shore up the country's dwindling foreign currency reserves. As well as a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, the new prime minister has also made overtures to the IMF -- which has bailed Pakistan out repeatedly since the 1980s. However, Islamabad received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing. Islamabad -- which last received an IMF bailout in 2013 to the tune of $6.6 billion -- has refuted these claims.

IMF team in Pakistan as China pledges economic aid

The Pakistani finance minister's bullish comments declaring the end of an economic crisis have bolstered confidence ahead of crunch talks with the International Monetary Fund on Wednesday, but the country is still likely to need a bailout.

Finance Minister Asad Umar said on Tuesday that "Pakistan's immediate balance of payment crisis is over" without mentioning the talks with the IMF in Islamabad.

Umar's comments came after Prime Minister Imran Khan visited main allies Saudi Arabia and China last month.

Khan secured $6 billion in assistance from Riyadh while Beijing promised help cover a projected $12 billion shortfall in foreign exchange to service Pakistan's debt.

Pakistan's central bank chief is due to travel to China on Friday to discuss details of what Umar described as a pledge of "immediate money".

Analysts say the cash will give the economy breathing space and stabilise the rupee, which has fallen 25 per cent against the US&nbsp;dollar since December, but it will not solve Pakistan's balance of payments crisis and avert a second IMF bailout request since 2013, and its 13th IMF rescue since late the 1980s.

"They are going to the IMF because they have to get credit rating approval from the financial markets and that would not happen on the Saudi or Chinese money," Asad Sayeed, an economist at the Collective for Social Science Research, told Reuters.

Pakistani officials are concerned tough IMF conditions would hit growth in the short term, as the IMF is likely to push for reduced spending, further currency devaluations and an increase in interest rates, preventing Khan from fulfilling populist campaign pledges.

Khan's government has pledged to create an "Islamic welfare state" and help build 5 million homes for the poor in a nation where the illiteracy rate is more than 40 per cent.

Confidence boost

But the Saudi and Chinese help could put the government in a stronger position to negotiate better terms with the IMF, Saad Hashemy, chief economist for local brokerage Topline Securities, told Reuters.

"The statement by the finance minister is a big confidence booster for the economy," Hashemy said.

"What it falls short of is the exact details of the funding from the Chinese side," he added, speculating China may opt to defer payments on existing loans and buy more Pakistani imports.

Chinese foreign ministry spokeswoman Hua Chunying told a daily news briefing Beijing was "willing, in accordance with Pakistan's needs and with agreement by both sides, to provide what help we can for Pakistan's economic and social development".

Pakistani shares soared more than 3 per cent on the news of the Saudi loans, and were up another 1.5 per cent on Wednesday following Umar's comments.

Umar has said the country needs $12 billion for immediate economic relief, but Hashemy said a total figure of up to $16 billion was needed to build up reserves, and negotiating a package with the IMF was the "smart thing".

Pakistan's current account deficit widened 43 per cent to $18 billion in the fiscal year that ended in June, while the fiscal deficit has ballooned to 6.6 per cent of gross domestic product, problems analysts say will not go away following the latest injection of economic assistance.

"There are very deep-seated structural problems," Sayeed warned.

"If you just sit back ... and carry on as you always do, that's not good because you're going to land up precisely in a similar situation in a few years."

The Pakistani finance minister's bullish comments declaring the end of an economic crisis have bolstered confidence ahead of crunch talks with the International Monetary Fund on Wednesday, but the country is still likely to need a bailout.

The Pakistani finance minister's bullish comments declaring the end of an economic crisis have bolstered confidence ahead of crunch talks with the International Monetary Fund on Wednesday, but the country is still likely to need a bailout. Finance Minister Asad Umar said on Tuesday that "Pakistan's immediate balance of payment crisis is over" without mentioning the talks with the IMF in Islamabad. Umar's comments came after Prime Minister Imran Khan visited main allies Saudi Arabia and China last month. Khan secured $6 billion in assistance from Riyadh while Beijing promised help cover a projected $12 billion shortfall in foreign exchange to service Pakistan's debt. Pakistan's central bank chief is due to travel to China on Friday to discuss details of what Umar described as a pledge of "immediate money". Analysts say the cash will give the economy breathing space and stabilise the rupee, which has fallen 25 per cent against the US dollar since December, but it will not solve Pakistan's balance of payments crisis and avert a second IMF bailout request since 2013, and its 13th IMF rescue since late the 1980s. "They are going to the IMF because they have to get credit rating approval from the financial markets and that would not happen on the Saudi or Chinese money," Asad Sayeed, an economist at the Collective for Social Science Research, told Reuters. Pakistani officials are concerned tough IMF conditions would hit growth in the short term, as the IMF is likely to push for reduced spending, further currency devaluations and an increase in interest rates, preventing Khan from fulfilling populist campaign pledges. Khan's government has pledged to create an "Islamic welfare state" and help build 5 million homes for the poor in a nation where the illiteracy rate is more than 40 per cent. Confidence boost But the Saudi and Chinese help could put the government in a stronger position to negotiate better terms with the IMF, Saad Hashemy, chief economist for local brokerage Topline Securities, told Reuters. "The statement by the finance minister is a big confidence booster for the economy," Hashemy said. "What it falls short of is the exact details of the funding from the Chinese side," he added, speculating China may opt to defer payments on existing loans and buy more Pakistani imports. Chinese foreign ministry spokeswoman Hua Chunying told a daily news briefing Beijing was "willing, in accordance with Pakistan's needs and with agreement by both sides, to provide what help we can for Pakistan's economic and social development". Pakistani shares soared more than 3 per cent on the news of the Saudi loans, and were up another 1.5 per cent on Wednesday following Umar's comments. Umar has said the country needs $12 billion for immediate economic relief, but Hashemy said a total figure of up to $16 billion was needed to build up reserves, and negotiating a package with the IMF was the "smart thing". Pakistan's current account deficit widened 43 per cent to $18 billion in the fiscal year that ended in June, while the fiscal deficit has ballooned to 6.6 per cent of gross domestic product, problems analysts say will not go away following the latest injection of economic assistance. "There are very deep-seated structural problems," Sayeed warned. "If you just sit back ... and carry on as you always do, that's not good because you're going to land up precisely in a similar situation in a few years."

Pakistan gets a boost of confidence but IMF bailout still on cards

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

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

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

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

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

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

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

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

The International Monetary Fund has said it was monitoring the development in India with regard to the reported rift between the Reserve Bank of India and the Centre.

It expressed its opposition to any move that compromises with the independence of central banks anywhere in the world.

"We're monitoring the development on that issue and will continue to do so," IMF Director of Communications Gerry Rice told reporters on Thursday when asked about the row.

"Just stepping back, as a general principle, and we've said this before. I've said this before standing here that we support clear lines of responsibility and accountability... And, international best practice is that there should be no government or industry interference that compromises the independence of the central bank and financial supervisor," Rice said.

This is true across the range of countries that the independence of the central bank and the financial supervisor is of utmost importance, he asserted.

"We regard it as such and we have to make that statement in the context of a number of countries. So, I think that's probably the best response I can give you," Rice said, responding to a question on the increasing efforts globally to criticise central banks, including the one by the US President Donald Trump in recent weeks.

The row was sparked off last Friday when RBI Deputy Governor Viral Acharya in a hard-hitting speech warned that undermining central bank's independence could be "potentially catastrophic", possible indication of the RBI being pushed to relax its policies ahead of general elections next year.

Sources privy to the development said the government had sent at least three letters on different issues under Section 7 of the RBI Act that gives it powers to issue any direction to the central bank governor on matters of public interest.

The standoff was in relation to RBI's handling of weak public sector banks, tight liquidity in the market and ways of resolving bad loans in the power sector. Unconfirmed reports claimed Governor Urjit Patel was considering stepping down if the government were to issue an unprecedented direction.

Without acknowledging that the notices have been sent to the RBI, the Finance Ministry in a statement said that the "autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this".

The International Monetary Fund has said it was monitoring the development in India with regard to the reported rift between the Reserve Bank of India and the Centre.

The International Monetary Fund has said it was monitoring the development in India with regard to the reported rift between the Reserve Bank of India and the Centre. It expressed its opposition to any move that compromises with the independence of central banks anywhere in the world. "We're monitoring the development on that issue and will continue to do so," IMF Director of Communications Gerry Rice told reporters on Thursday when asked about the row. "Just stepping back, as a general principle, and we've said this before. I've said this before standing here that we support clear lines of responsibility and accountability... And, international best practice is that there should be no government or industry interference that compromises the independence of the central bank and financial supervisor," Rice said. This is true across the range of countries that the independence of the central bank and the financial supervisor is of utmost importance, he asserted. "We regard it as such and we have to make that statement in the context of a number of countries. So, I think that's probably the best response I can give you," Rice said, responding to a question on the increasing efforts globally to criticise central banks, including the one by the US President Donald Trump in recent weeks. The row was sparked off last Friday when RBI Deputy Governor Viral Acharya in a hard-hitting speech warned that undermining central bank's independence could be "potentially catastrophic", possible indication of the RBI being pushed to relax its policies ahead of general elections next year. Sources privy to the development said the government had sent at least three letters on different issues under Section 7 of the RBI Act that gives it powers to issue any direction to the central bank governor on matters of public interest. The standoff was in relation to RBI's handling of weak public sector banks, tight liquidity in the market and ways of resolving bad loans in the power sector. Unconfirmed reports claimed Governor Urjit Patel was considering stepping down if the government were to issue an unprecedented direction. Without acknowledging that the notices have been sent to the RBI, the Finance Ministry in a statement said that the "autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this".

RBI row: IMF against govt interference that compromises central bank's independence

Imran Khan will arrive in China on Friday in what is termed as the most significant visit to China by a Pakistani Prime Minister in recent years as the all-weather allies grapple to iron out differences over the CPEC and Islamabad approaching 'friendly nations' to avoid a tough IMF bailout package.

During his four-day visit, Khan is scheduled to hold talks with Chinese President Xi Jinping and Premier Li Keqiang and expected to sign several agreements.&nbsp;

Khan is also one of the heads of countries who would attend the inaugural meeting of China's biggest international import expo to be held in Shanghai from November 5.

While it is a routine for a new Pakistan Prime Minister to visit China considering the "iron brother"&nbsp;relationship between two countries and militaries, Khan's visit evoked considerable interest as it comes in the wake of his past criticism of the $ 60 billion China-Pakistan Economic Corridor (CPEC) projects and remarks by his ministers to downsize some of the projects over debt concern.

The cricketer-turned-politician, during his first visit to China, is also expected to seek more Chinese loans to avoid approaching IMF for a bailout package.&nbsp;

Soon after the government headed by Khan was formed, Pakistan's Commerce and Industry Minister Abdul Razak Dawood told the Financial Times that the new government would review all the CPEC projects. He also reportedly said that some of the agreements were unfair to Pakistani companies and should be put on hold for a year.

Few days later, Railway Minister Sheikh Rashid let off another bombshell by saying that Pakistan wants to cut the size of the $ 8 billion Karachi-Peshawar rail line, the biggest project of the CPEC, by $ 2 billion.

The statements evoked serious concerns in China as the CPEC is the flagship project of Xi's pet multi-billion Belt and Road Initiative (BRI). 
The CPEC has also become a major irritant in India-China relations with New Delhi voicing its opposition to the infrastructure project as it traverses through Pakistan-occupied Kashmir (POK).

Khan, however, assured his support to the CPEC when Chinese State Councillor and Foreign Minister Wang Yi visited Islamabad on September.&nbsp; 
China also agreed to address his concerns that the CPEC projects were mainly benefitting the dominant Punjab region and the new projects will focus on the western region of Balochistan and Khyber Pakhtunkhwa.&nbsp;

From Beijing's point of view, Pakistan's criticism of the project was a shocker, specially after China's takeover of Sri Lanka's Hambantota port on 99-year lease as debt swap.

A recent write up in the Hong Kong-based South China Morning Post said, According to the few financial details of the CPEC that are available, Pakistan is not benefiting significantly from the programme...Although China has lent Pakistan $ 26 billion-$ 30 billion for power and transport projects that are part of the economic corridor, not a single dollar has entered the Pakistani banking channels.

"Instead, Chinese banks give the loans to Chinese companies, which buy equipment in China and use it in Pakistan. Consequently, instead of gaining economic benefits, Pakistan is running up huge debts and risking fiscal default,"&nbsp;it said.

Also, China is concerned over cash-strapped Pakistan's plans to approach the International Monetary Fund for a bailout amid assertions by the global lender to scrutinise the CPEC loans.

IMF chief Christiana Lagarde has made it clear that the IMF would require absolute transparency on Pakistan's debts, including those with the CPEC.&nbsp;

US Secretary of State Mike Pompeo has also warned that any potential IMF bailout for Pakistan should not provide funds to pay off Chinese lenders. 
Beijing is also uncomfortable over Pakistan roping in Saudi Arabia to invest in Balochistan bordering Iran. The province is key to the CPEC as it terminates at the strategic Gwadar port located there. The CPEC connects China's Xinjiang province with Gwadar through a rail, road and pipeline network. China do not want the CPEC projects to get caught in the Saudi-Iran rivalry.

For its part, China has been giving a top billing for Khan's visit and vehemently deny the debt concerns.

Khan's visit to China will provide an "opportunity" for the two countries to open a "new chapter" of bilateral relations "under the new circumstances", Chinese Foreign Ministry spokesman Lu Kang said on Monday.

Lu also refuted criticism that the CPEC is causing financial and debt problems for Pakistan, saying Islamabad has already made it clear that debts incurred by the CPEC only account for a very small portion of Pakistan's total debts and is not a reason why the country is experiencing financial difficulties.&nbsp;

Khan's visit to China comes at a time when radical Islamists, defying the prime minister's stern warning, are holding protests across Pakistan against the acquittal of a Christian woman sentenced to death for committing blasphemy.&nbsp;

Asia Bibi, 47, was convicted in 2010 after being accused of insulting Islam in a row with her neighbours. She always maintained her innocence, but has spent most of the past eight years in solitary confinement.

The apex court's judgement, which was pronounced Wednesday, triggered agitations across Pakistan with protestors led by Islamic political party Tehreek-i-Labaik Pakistan and other groups blocking major highways and roads in different parts of the country. 
&nbsp;

Imran Khan will arrive in China on Friday in what is termed as the most significant visit to China by a Pakistani Prime Minister in recent years as the all-weather allies grapple to iron out differences over the CPEC and Islamabad approaching 'friendly nations' to avoid a tough IMF bailout package.

Imran Khan will arrive in China on Friday in what is termed as the most significant visit to China by a Pakistani Prime Minister in recent years as the all-weather allies grapple to iron out differences over the CPEC and Islamabad approaching 'friendly nations' to avoid a tough IMF bailout package. During his four-day visit, Khan is scheduled to hold talks with Chinese President Xi Jinping and Premier Li Keqiang and expected to sign several agreements. Khan is also one of the heads of countries who would attend the inaugural meeting of China's biggest international import expo to be held in Shanghai from November 5. While it is a routine for a new Pakistan Prime Minister to visit China considering the "iron brother" relationship between two countries and militaries, Khan's visit evoked considerable interest as it comes in the wake of his past criticism of the $ 60 billion China-Pakistan Economic Corridor (CPEC) projects and remarks by his ministers to downsize some of the projects over debt concern. The cricketer-turned-politician, during his first visit to China, is also expected to seek more Chinese loans to avoid approaching IMF for a bailout package. Soon after the government headed by Khan was formed, Pakistan's Commerce and Industry Minister Abdul Razak Dawood told the Financial Times that the new government would review all the CPEC projects. He also reportedly said that some of the agreements were unfair to Pakistani companies and should be put on hold for a year. Few days later, Railway Minister Sheikh Rashid let off another bombshell by saying that Pakistan wants to cut the size of the $ 8 billion Karachi-Peshawar rail line, the biggest project of the CPEC, by $ 2 billion. The statements evoked serious concerns in China as the CPEC is the flagship project of Xi's pet multi-billion Belt and Road Initiative (BRI). The CPEC has also become a major irritant in India-China relations with New Delhi voicing its opposition to the infrastructure project as it traverses through Pakistan-occupied Kashmir (POK). Khan, however, assured his support to the CPEC when Chinese State Councillor and Foreign Minister Wang Yi visited Islamabad on September. China also agreed to address his concerns that the CPEC projects were mainly benefitting the dominant Punjab region and the new projects will focus on the western region of Balochistan and Khyber Pakhtunkhwa. From Beijing's point of view, Pakistan's criticism of the project was a shocker, specially after China's takeover of Sri Lanka's Hambantota port on 99-year lease as debt swap. A recent write up in the Hong Kong-based South China Morning Post said, According to the few financial details of the CPEC that are available, Pakistan is not benefiting significantly from the programme...Although China has lent Pakistan $ 26 billion-$ 30 billion for power and transport projects that are part of the economic corridor, not a single dollar has entered the Pakistani banking channels. "Instead, Chinese banks give the loans to Chinese companies, which buy equipment in China and use it in Pakistan. Consequently, instead of gaining economic benefits, Pakistan is running up huge debts and risking fiscal default," it said. Also, China is concerned over cash-strapped Pakistan's plans to approach the International Monetary Fund for a bailout amid assertions by the global lender to scrutinise the CPEC loans. IMF chief Christiana Lagarde has made it clear that the IMF would require absolute transparency on Pakistan's debts, including those with the CPEC. US Secretary of State Mike Pompeo has also warned that any potential IMF bailout for Pakistan should not provide funds to pay off Chinese lenders. Beijing is also uncomfortable over Pakistan roping in Saudi Arabia to invest in Balochistan bordering Iran. The province is key to the CPEC as it terminates at the strategic Gwadar port located there. The CPEC connects China's Xinjiang province with Gwadar through a rail, road and pipeline network. China do not want the CPEC projects to get caught in the Saudi-Iran rivalry. For its part, China has been giving a top billing for Khan's visit and vehemently deny the debt concerns. Khan's visit to China will provide an "opportunity" for the two countries to open a "new chapter" of bilateral relations "under the new circumstances", Chinese Foreign Ministry spokesman Lu Kang said on Monday. Lu also refuted criticism that the CPEC is causing financial and debt problems for Pakistan, saying Islamabad has already made it clear that debts incurred by the CPEC only account for a very small portion of Pakistan's total debts and is not a reason why the country is experiencing financial difficulties. Khan's visit to China comes at a time when radical Islamists, defying the prime minister's stern warning, are holding protests across Pakistan against the acquittal of a Christian woman sentenced to death for committing blasphemy. Asia Bibi, 47, was convicted in 2010 after being accused of insulting Islam in a row with her neighbours. She always maintained her innocence, but has spent most of the past eight years in solitary confinement. The apex court's judgement, which was pronounced Wednesday, triggered agitations across Pakistan with protestors led by Islamic political party Tehreek-i-Labaik Pakistan and other groups blocking major highways and roads in different parts of the country.

Spotlight on CPEC projects, IMF bailout as Imran Khan all set to embark on maiden China visit

Pakistani Prime Minister Imran Khan Tuesday vowed to hold peace talks with arch-rival India following elections in the neighbouring country, after a similar offer from the former cricketer was "<a href="http://www.wionews.com/india-news/india-slams-imrans-remarks-on-kashmir-asks-pakistan-to-dismantle-terror-infrastructure-on-its-soil-172893">rebuffed</a>".

Khan made the announcement during a speech at a Saudi Arabian investment conference where the newly minted leader launched a charm offensive targeting potential investors as Pakistan seeks to secure funds amid a yawning balance of payment crisis. &nbsp;

"When I won the elections and came to power the first thing I tried to do was extend a hand of peace to India," Khan told the crowd at the Future Investment Initiative (FII) in Riyadh, saying the overture was later "rebuffed" by Delhi.

"Now what we are hoping is that we wait until the elections then again we will resume our peace talks with India," he added, referring to upcoming nationwide polls scheduled to take place by mid-May.

In September India pulled the plug on a rare meeting between its foreign minister and her Pakistani counterpart on the sidelines of a UN summit -- a move that was termed "arrogant" by Khan and unleashed a barrage of insults from both sides.

India has long accused Pakistan of backing militants in Kashmir, a Himalayan territory divided between the two countries but claimed in full by both since independence in 1947.

Delhi has stationed about 500,000 soldiers in the portion of Kashmir it controls, where separatist groups demand independence or a merger with Pakistan.

Khan's call for peace talks comes as his administration is desperately seeking funds from "friendly" countries, including Saudi Arabia, to shore up Pakistan's deteriorating finances.

The prime minister's attendance at the FII comes as leading policy-makers and corporate chiefs shunned the conference in response to the death of journalist Jamal Khashoggi at the Saudi consulate in Istanbul.

During his address at the FII Khan confirmed that Pakistan was also in talks with the International Monetary Fund (IMF) over a new bailout.

Since taking power in August Khan has also sought loans from allies such as China and Saudi Arabia, promised to recover funds stolen by corrupt officials, and embarked on a series of high-profile populist austerity measures.

But help has been in short supply and economists' warnings have grown increasingly urgent.

Pakistani Prime Minister Imran Khan Tuesday vowed to hold peace talks with arch-rival India following elections in the neighbouring country, after a similar offer from the former cricketer was "rebuffed".

Pakistani Prime Minister Imran Khan Tuesday vowed to hold peace talks with arch-rival India following elections in the neighbouring country, after a similar offer from the former cricketer was "rebuffed". Khan made the announcement during a speech at a Saudi Arabian investment conference where the newly minted leader launched a charm offensive targeting potential investors as Pakistan seeks to secure funds amid a yawning balance of payment crisis. "When I won the elections and came to power the first thing I tried to do was extend a hand of peace to India," Khan told the crowd at the Future Investment Initiative (FII) in Riyadh, saying the overture was later "rebuffed" by Delhi. "Now what we are hoping is that we wait until the elections then again we will resume our peace talks with India," he added, referring to upcoming nationwide polls scheduled to take place by mid-May. In September India pulled the plug on a rare meeting between its foreign minister and her Pakistani counterpart on the sidelines of a UN summit -- a move that was termed "arrogant" by Khan and unleashed a barrage of insults from both sides. India has long accused Pakistan of backing militants in Kashmir, a Himalayan territory divided between the two countries but claimed in full by both since independence in 1947. Delhi has stationed about 500,000 soldiers in the portion of Kashmir it controls, where separatist groups demand independence or a merger with Pakistan. Khan's call for peace talks comes as his administration is desperately seeking funds from "friendly" countries, including Saudi Arabia, to shore up Pakistan's deteriorating finances. The prime minister's attendance at the FII comes as leading policy-makers and corporate chiefs shunned the conference in response to the death of journalist Jamal Khashoggi at the Saudi consulate in Istanbul. During his address at the FII Khan confirmed that Pakistan was also in talks with the International Monetary Fund (IMF) over a new bailout. Since taking power in August Khan has also sought loans from allies such as China and Saudi Arabia, promised to recover funds stolen by corrupt officials, and embarked on a series of high-profile populist austerity measures. But help has been in short supply and economists' warnings have grown increasingly urgent.

Pakistan PM Imran Khan vows to hold peace talks with India

Pakistan Prime Minister Imran Khan would tell the Chinese leadership that his government wants a "significant shift" in the infrastructure projects under the controversy-hit China-Pakistan Economic Corridor (CPEC) in the country, according to a media report on Monday.

The USD 60 billion CPEC is the flagship venture of the Belt and Road Initiative (BRI), a pet project of Chinese President Xi Jinping aimed at enhancing Beijing's influence around the world through China-funded infrastructure projects.

The CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea.

Prime Minister Khan is to embark on his first visit to China on November 3 during which he is expected to call on President Xi as well as meet his counterpart Li Keqiang.

"During his meetings in the friendly country, Khan would inform the Chinese leadership that his government wanted to bring about a significant shift in the projects falling under the purview of the CPEC," the Dawn newspaper reported, quoting unnamed sources as saying.

Under the previous government there was an emphasis on infrastructure schemes, but the current government of Khan wanted projects involving agriculture, job creation and foreign investment take centre stage, the report said.&nbsp;

Pakistan has already approached the International Monetary Fund for a bailout to stabilise the economy.

The US has said that the huge Chinese debt was responsible for the economic challenges in Pakistan, adding that it will review Islamabad's bailout plea to the IMF from all angles, including the country's debt position.

State Department spokesperson Heather Nauert said that the US thinks that part of the reason for Pakistan's financial crisis is Chinese debt.

India has protested to Beijing over the CPEC as it traversed through Pakistan-occupied Kashmir.

Cash-strapped Pakistan has already announced plans to cut a USD 8.2 billion railway project between the Karachi and Peshawar the biggest under the CPEC by about USD 2 billion to reduce the debt burden.

Meanwhile, the report also said that due to suspension of funding to CPEC's infrastructure projects, the National Highway Authority's road projects worth over Rs 1 trillion have been adversely affected. Many projects in the energy sector have also been hit.

The affected projects include the 210km Dera Ismail Khan-Zhob road, the 110km Khuzdar-Basima road and a 136km portion of the Karakoram Highway.

In a recent meeting about his visit to China, Prime Minister Khan said that early implementation of the CPEC projects would help realise the true potential of the economic ties between the two countries.

He emphasised the need for early establishment of Special Economic Zones in various parts of the country and hoped these zones would help the local industry grow, creating huge employment opportunities for the youth, the report said.&nbsp;

Pakistan Prime Minister Imran Khan would tell the Chinese leadership that his government wants a "significant shift" in the infrastructure projects under the controversy-hit China-Pakistan Economic Corridor (CPEC) in the country, according to a media report on Monday.

Pakistan Prime Minister Imran Khan would tell the Chinese leadership that his government wants a "significant shift" in the infrastructure projects under the controversy-hit China-Pakistan Economic Corridor (CPEC) in the country, according to a media report on Monday. The USD 60 billion CPEC is the flagship venture of the Belt and Road Initiative (BRI), a pet project of Chinese President Xi Jinping aimed at enhancing Beijing's influence around the world through China-funded infrastructure projects. The CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea. Prime Minister Khan is to embark on his first visit to China on November 3 during which he is expected to call on President Xi as well as meet his counterpart Li Keqiang. "During his meetings in the friendly country, Khan would inform the Chinese leadership that his government wanted to bring about a significant shift in the projects falling under the purview of the CPEC," the Dawn newspaper reported, quoting unnamed sources as saying. Under the previous government there was an emphasis on infrastructure schemes, but the current government of Khan wanted projects involving agriculture, job creation and foreign investment take centre stage, the report said. Pakistan has already approached the International Monetary Fund for a bailout to stabilise the economy. The US has said that the huge Chinese debt was responsible for the economic challenges in Pakistan, adding that it will review Islamabad's bailout plea to the IMF from all angles, including the country's debt position. State Department spokesperson Heather Nauert said that the US thinks that part of the reason for Pakistan's financial crisis is Chinese debt. India has protested to Beijing over the CPEC as it traversed through Pakistan-occupied Kashmir. Cash-strapped Pakistan has already announced plans to cut a USD 8.2 billion railway project between the Karachi and Peshawar the biggest under the CPEC by about USD 2 billion to reduce the debt burden. Meanwhile, the report also said that due to suspension of funding to CPEC's infrastructure projects, the National Highway Authority's road projects worth over Rs 1 trillion have been adversely affected. Many projects in the energy sector have also been hit. The affected projects include the 210km Dera Ismail Khan-Zhob road, the 110km Khuzdar-Basima road and a 136km portion of the Karakoram Highway. In a recent meeting about his visit to China, Prime Minister Khan said that early implementation of the CPEC projects would help realise the true potential of the economic ties between the two countries. He emphasised the need for early establishment of Special Economic Zones in various parts of the country and hoped these zones would help the local industry grow, creating huge employment opportunities for the youth, the report said.

Imran Khan to seek 'significant shift' in China's CPEC projects in Pakistan: Report

From cutting power subsidies to forcing currency devaluations that stoke inflation, the hard choices facing Pakistan as it seeks a bailout from the International Monetary Fund (IMF) pose a major headache for populist new Prime Minister Imran Khan.

Pakistani officials met IMF representatives this week in Bali and formally requested Islamabad's 13th bailout since the late 1980s to give the economy breathing room, while they implement reforms aiming to end decades of boom and bust cycles.

On top of lending the nuclear-armed state billions of dollars to avert another balance of payments crisis, the IMF is this time expected to push Islamabad much harder to enact structural reforms needed to rebalance the economy, and rein in spending that has boosted growth but blown out the government budget.

Talks with the IMF have been launched and managing director Christine Lagarde has already said she would require "absolute transparency" of Pakistan's debts, including those owed to close ally China.

Any reforms prescribed by the IMF would threaten Khan's lofty campaign promises, like his vow to create 10 million jobs and establish an "Islamic welfare state" modelled on the ideas first voiced by the Prophet Mohammad in the holy city of Medina.

Khan was elected in July with the support of many poorer Pakistanis desperate for a change in a nation where the illiteracy rate hovers above 40 per cent, healthcare is shoddy, and joblessness or underemployment rife among the country's 208 million people.

Creating 10 million jobs would require the economy to grow at 8 per cent but that can only be achieved with economic shock therapy that in the short term will smother growth to far below the 5.8 per cent achieved in the year to June, economists say.

"The path to Medina is full of thorns, not roses," said one expert at an international donor agency, who declined to be identified as he is not authorised to speak on the issue.

"To get there, they have to go through these painful measures now."

The IMF predicted this week Pakistan's growth will slow to 4 per cent in 2019 and fall to about 3 per cent in the medium term.

A sharp increase in oil prices - Pakistan imports about 80 per cent of oil needs - has contributed to a current account deficit that widened 43 per cent to $18 billion in the fiscal year that ended June 30. The weakening Pakistan rupee also contributes to a rise in local energy prices.

On Wednesday, Khan blamed the previous government for the economic mess and urged Pakistanis to remain calm.

"I want to tell all of you to stay strong and not to panic. This is a very short period of time which will go away."

'FEND FOR OURSELVES'

As an opposition leader, Khan vowed to never "beg" for money from the IMF and swept to power on an anti-corruption platform that was coupled with a promise to enact badly needed reforms, including widening the nation's taxation net and reforming loss-making state-run enterprises.

But local and foreign investors have welcomed the bailout talks, saying Pakistan's economy needs the IMF's protective blanket because of rising oil prices and emerging markets turmoil. However, they also warned of tougher conditions compared to 2013, when Islamabad was given repeated wavers and avoided harsh reforms after receiving a $6.7 billion IMF loan.

&nbsp;''Better that we enter into a well-structured IMF programme than try to fend for ourselves," the Pakistan Business Council said in a statemen

In a nod to the IMF, which called the rupee "over-valued", Pakistan's central bank on Tuesday carried out its fifth devaluation since December, sending the rupee tumbling 7.5 per cent to take its losses to 26 per cent in the past 10 months. More devaluations are expected.

The bank has also hiked its main interest rate by 275 basis points since January, to 8.5 per cent, and analysts say more rises are on the horizon.

The devaluations have stoked inflation worries and are putting extra pressure on debt servicing, which is a major concern for the new government. Debt service costs are set to account for 35 per cent of the budget in the fiscal year to next June, according to forecasts from the previous government. Officials now expect the debt to GDP ratio to rise above 70 per cent.

"We really have to get out of this debt dependency trap," Muhammad Hammad Azhar, Pakistan's state minister for revenue, told Reuters.

He said the government was considering the possible restructuring of some foreign loans but did not give details.

Khan's government blames many of Pakistan's current economic woes on the previous administration's "strong rupee" policy, which rendered Pakistan's exports uncompetitive. The central bank also burnt through currency reserves defending the rupee.

Reserves have plummeted 41 per cent this year to stand at $8.3 billion, or about 1.6 months of import cover, despite China lending billions of dollars to Islamabad to prop up the currency. &nbsp;

CHINA LOANS

China has made Pakistan a flagship country in its vast Belt and Road infrastructure building programme, pledging about $60 billion in financing for ports, railways and roads. But rising debt levels have caused Islamabad to cut the size of the biggest Belt and Road project by about $2 billion.

US Secretary of State Mike Pompeo has said there would be "no rationale" for an IMF bailout of Pakistan that pays off Chinese loans.

Khan's administration had also approached China and Saudi Arabia, Islamabad's other historical ally, for help to prop up the economy but they appear to have balked at coming to Pakistan's rescue on their own.

Though the size of any bailout is not clear, Khan this week suggested Pakistan needs $10-12 billion. On top of the IMF, the World Bank and the Asian Development Bank are expected to lend money, as they did in 2013. China and Saudi Arabia may also contribute.

The IMF last week commended Pakistan for curbing gas and electricity subsidies, raising interest rates and devaluing the currency. But it warned that Islamabad needs to go even further in all those areas.

Pakistani officials say they are braced for tough measures but hope to expand the tax base and raise more revenue rather than rely purely on austerity to patch up a budget deficit which hit 6.6 per cent of GDP in the fiscal year to end June. They also want to help further stimulate exports.&nbsp;

Azhar said Khan's party was elected on a reforms agenda and would push through changes "irrespective of any IMF bailout".

On Wednesday, Khan launched a programme aiming to construct five million homes for the poor, a top campaign promise. But he didn't explain how the government will pay for it.

From cutting power subsidies to forcing currency devaluations that stoke inflation, the hard choices facing Pakistan as it seeks a bailout from the International Monetary Fund (IMF) pose a major headache for populist new Prime Minister Imran Khan.

From cutting power subsidies to forcing currency devaluations that stoke inflation, the hard choices facing Pakistan as it seeks a bailout from the International Monetary Fund (IMF) pose a major headache for populist new Prime Minister Imran Khan. Pakistani officials met IMF representatives this week in Bali and formally requested Islamabad's 13th bailout since the late 1980s to give the economy breathing room, while they implement reforms aiming to end decades of boom and bust cycles. On top of lending the nuclear-armed state billions of dollars to avert another balance of payments crisis, the IMF is this time expected to push Islamabad much harder to enact structural reforms needed to rebalance the economy, and rein in spending that has boosted growth but blown out the government budget. Talks with the IMF have been launched and managing director Christine Lagarde has already said she would require "absolute transparency" of Pakistan's debts, including those owed to close ally China. Any reforms prescribed by the IMF would threaten Khan's lofty campaign promises, like his vow to create 10 million jobs and establish an "Islamic welfare state" modelled on the ideas first voiced by the Prophet Mohammad in the holy city of Medina. Khan was elected in July with the support of many poorer Pakistanis desperate for a change in a nation where the illiteracy rate hovers above 40 per cent, healthcare is shoddy, and joblessness or underemployment rife among the country's 208 million people. Creating 10 million jobs would require the economy to grow at 8 per cent but that can only be achieved with economic shock therapy that in the short term will smother growth to far below the 5.8 per cent achieved in the year to June, economists say. "The path to Medina is full of thorns, not roses," said one expert at an international donor agency, who declined to be identified as he is not authorised to speak on the issue. "To get there, they have to go through these painful measures now." The IMF predicted this week Pakistan's growth will slow to 4 per cent in 2019 and fall to about 3 per cent in the medium term. A sharp increase in oil prices - Pakistan imports about 80 per cent of oil needs - has contributed to a current account deficit that widened 43 per cent to $18 billion in the fiscal year that ended June 30. The weakening Pakistan rupee also contributes to a rise in local energy prices. On Wednesday, Khan blamed the previous government for the economic mess and urged Pakistanis to remain calm. "I want to tell all of you to stay strong and not to panic. This is a very short period of time which will go away." 'FEND FOR OURSELVES' As an opposition leader, Khan vowed to never "beg" for money from the IMF and swept to power on an anti-corruption platform that was coupled with a promise to enact badly needed reforms, including widening the nation's taxation net and reforming loss-making state-run enterprises. But local and foreign investors have welcomed the bailout talks, saying Pakistan's economy needs the IMF's protective blanket because of rising oil prices and emerging markets turmoil. However, they also warned of tougher conditions compared to 2013, when Islamabad was given repeated wavers and avoided harsh reforms after receiving a $6.7 billion IMF loan. ''Better that we enter into a well-structured IMF programme than try to fend for ourselves," the Pakistan Business Council said in a statemen In a nod to the IMF, which called the rupee "over-valued", Pakistan's central bank on Tuesday carried out its fifth devaluation since December, sending the rupee tumbling 7.5 per cent to take its losses to 26 per cent in the past 10 months. More devaluations are expected. The bank has also hiked its main interest rate by 275 basis points since January, to 8.5 per cent, and analysts say more rises are on the horizon. The devaluations have stoked inflation worries and are putting extra pressure on debt servicing, which is a major concern for the new government. Debt service costs are set to account for 35 per cent of the budget in the fiscal year to next June, according to forecasts from the previous government. Officials now expect the debt to GDP ratio to rise above 70 per cent. "We really have to get out of this debt dependency trap," Muhammad Hammad Azhar, Pakistan's state minister for revenue, told Reuters. He said the government was considering the possible restructuring of some foreign loans but did not give details. Khan's government blames many of Pakistan's current economic woes on the previous administration's "strong rupee" policy, which rendered Pakistan's exports uncompetitive. The central bank also burnt through currency reserves defending the rupee. Reserves have plummeted 41 per cent this year to stand at $8.3 billion, or about 1.6 months of import cover, despite China lending billions of dollars to Islamabad to prop up the currency. CHINA LOANS China has made Pakistan a flagship country in its vast Belt and Road infrastructure building programme, pledging about $60 billion in financing for ports, railways and roads. But rising debt levels have caused Islamabad to cut the size of the biggest Belt and Road project by about $2 billion. US Secretary of State Mike Pompeo has said there would be "no rationale" for an IMF bailout of Pakistan that pays off Chinese loans. Khan's administration had also approached China and Saudi Arabia, Islamabad's other historical ally, for help to prop up the economy but they appear to have balked at coming to Pakistan's rescue on their own. Though the size of any bailout is not clear, Khan this week suggested Pakistan needs $10-12 billion. On top of the IMF, the World Bank and the Asian Development Bank are expected to lend money, as they did in 2013. China and Saudi Arabia may also contribute. The IMF last week commended Pakistan for curbing gas and electricity subsidies, raising interest rates and devaluing the currency. But it warned that Islamabad needs to go even further in all those areas. Pakistani officials say they are braced for tough measures but hope to expand the tax base and raise more revenue rather than rely purely on austerity to patch up a budget deficit which hit 6.6 per cent of GDP in the fiscal year to end June. They also want to help further stimulate exports. Azhar said Khan's party was elected on a reforms agenda and would push through changes "irrespective of any IMF bailout". On Wednesday, Khan launched a programme aiming to construct five million homes for the poor, a top campaign promise. But he didn't explain how the government will pay for it.

As it seeks IMF bailout, hard choices face Pakistan

The United States has said it will review Pakistan's bailout request to the IMF from all angles, including the country's debt position, as it appeared to have held the huge Chinese debt responsible for it.

"We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF). In all cases, we examine that closely from all angles of it, including Pakistan's debt position, in evaluating any type of loan programme," State Department spokesperson Heather Nauert told reporters at a news conference Thursday.

This is something the United States has been tracking fairly closely.&nbsp;

"The secretary had spoken about this a few months back, I know, in some interviews not that long ago. I think part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they maybe thought wouldn't be so tough to bail themselves out of, but has become increasingly tough," Nauert said in response to a question.

The State Department response on Pakistan's IMF bailout request appeared to be in sync with the statement made by IMF Managing Director Christine Lagarde.

Responding to questions on this issue in Bali, Indonesia, Lagarde said she would require absolute transparency on Pakistan's debts, including those owned by China.

"In whatever work we do, we need to have a complete understanding and absolute transparency about the nature, size, and terms of the debt that is bearing on a particular country," she said.

"To really understand the extent and composition of that debt, both in terms of sovereign, in terms of state-owned enterprises and the likes of it, so that we can actually really appreciate and determine the debt sustainability of that country, if and when we consider a programme, Lagarde said.&nbsp; 
&nbsp;

The United States has said it will review Pakistan's bailout request to the IMF from all angles, including the country's debt position, as it appeared to have held the huge Chinese debt responsible for it.

The United States has said it will review Pakistan's bailout request to the IMF from all angles, including the country's debt position, as it appeared to have held the huge Chinese debt responsible for it. "We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF). In all cases, we examine that closely from all angles of it, including Pakistan's debt position, in evaluating any type of loan programme," State Department spokesperson Heather Nauert told reporters at a news conference Thursday. This is something the United States has been tracking fairly closely. "The secretary had spoken about this a few months back, I know, in some interviews not that long ago. I think part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they maybe thought wouldn't be so tough to bail themselves out of, but has become increasingly tough," Nauert said in response to a question. The State Department response on Pakistan's IMF bailout request appeared to be in sync with the statement made by IMF Managing Director Christine Lagarde. Responding to questions on this issue in Bali, Indonesia, Lagarde said she would require absolute transparency on Pakistan's debts, including those owned by China. "In whatever work we do, we need to have a complete understanding and absolute transparency about the nature, size, and terms of the debt that is bearing on a particular country," she said. "To really understand the extent and composition of that debt, both in terms of sovereign, in terms of state-owned enterprises and the likes of it, so that we can actually really appreciate and determine the debt sustainability of that country, if and when we consider a programme, Lagarde said.

US will review Pak's bailout application to IMF, including debt position 

The United States on Friday held China responsible for economic challenges being faced by Pakistan and said that it would review the Pakistan government`s bailout plea from all angles including the position of debt in the country.

According to The News, US State Department spokesperson Heather Nauert during a press conference, said: "We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF).&nbsp;In all cases, we examine that closely from all angles of it, including Pakistan`s debt position, in evaluating any type of loan programme."

Nauert added, "The secretary had spoken about this a few months back, I know, in some interviews not that long ago. I think part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they may be thought wouldn`t be so tough to bail themselves out of, but has become increasingly tough."

IMF Managing Director Christine Lagarde on Thursday confirmed that Pakistan has formally approached the funding organisation seeking financial assistance to address its economic challenges.&nbsp;

Lagarde met Pakistan's Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team.

"Today, I met with Pakistan's Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. During the meeting, they requested financial assistance from the IMF to help address Pakistan`s economic challenges," Lagarde revealed in a statement.

Revealing visit of a team of the international body, Lagarde said: "An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme. We look forward to our continuing partnership," Lagarde added.

Pakistan`s economy has been in a limbo for long. It was already speculated that Pakistan would have to seek a loan package from IMF following the elections held on July 25.&nbsp;

The United States on Friday held China responsible for economic challenges being faced by Pakistan and said that it would review the Pakistan government`s bailout plea from all angles including the position of debt in the country.

The United States on Friday held China responsible for economic challenges being faced by Pakistan and said that it would review the Pakistan government`s bailout plea from all angles including the position of debt in the country. According to The News, US State Department spokesperson Heather Nauert during a press conference, said: "We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF). In all cases, we examine that closely from all angles of it, including Pakistan`s debt position, in evaluating any type of loan programme." Nauert added, "The secretary had spoken about this a few months back, I know, in some interviews not that long ago. I think part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they may be thought wouldn`t be so tough to bail themselves out of, but has become increasingly tough." IMF Managing Director Christine Lagarde on Thursday confirmed that Pakistan has formally approached the funding organisation seeking financial assistance to address its economic challenges. Lagarde met Pakistan's Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. "Today, I met with Pakistan's Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. During the meeting, they requested financial assistance from the IMF to help address Pakistan`s economic challenges," Lagarde revealed in a statement. Revealing visit of a team of the international body, Lagarde said: "An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme. We look forward to our continuing partnership," Lagarde added. Pakistan`s economy has been in a limbo for long. It was already speculated that Pakistan would have to seek a loan package from IMF following the elections held on July 25.

US blames China for economic woes in Pakistan

International Monetary Fund (IMF) Managing Director Christine Lagarde on Thursday confirmed that Pakistan has formally approached the IMF seeking financial assistance to address its economic challenges.

Lagarde met Pakistan's Minister of Finance, Revenue and Economic Affairs, Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team.

"Today, I met with Pakistan's Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. During the meeting, they requested financial assistance from the IMF to help address Pakistan's economic challenges," Lagarde revealed in a statement.

She further said that an IMF team will visit Islamabad in the coming week to initiate discussions for a possible economic programme.

"An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme. We look forward to our continuing partnership," Lagarde added.

Pakistan's economy has been in a limbo for long. It was already speculated that Pakistan would have to seek a loan package from IMF following the elections which were held on July 25.

Islamabad will be seeking a loan package from the fund for the second time since 2013.

In June, Caretaker Finance Minister Shamshad Akhtar in a press conference in Islamabad revealed that the government will be seeking financial help from the IMF in order to balance the deficit gap of USD 25 billion.&nbsp;

International Monetary Fund (IMF) Managing Director Christine Lagarde on Thursday confirmed that Pakistan has formally approached the IMF seeking financial assistance to address its economic challenges.

International Monetary Fund (IMF) Managing Director Christine Lagarde on Thursday confirmed that Pakistan has formally approached the IMF seeking financial assistance to address its economic challenges. Lagarde met Pakistan's Minister of Finance, Revenue and Economic Affairs, Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. "Today, I met with Pakistan's Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. During the meeting, they requested financial assistance from the IMF to help address Pakistan's economic challenges," Lagarde revealed in a statement. She further said that an IMF team will visit Islamabad in the coming week to initiate discussions for a possible economic programme. "An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme. We look forward to our continuing partnership," Lagarde added. Pakistan's economy has been in a limbo for long. It was already speculated that Pakistan would have to seek a loan package from IMF following the elections which were held on July 25. Islamabad will be seeking a loan package from the fund for the second time since 2013. In June, Caretaker Finance Minister Shamshad Akhtar in a press conference in Islamabad revealed that the government will be seeking financial help from the IMF in order to balance the deficit gap of USD 25 billion.

IMF team to visit Pakistan to initiate discussions on bailout

IMF chief Christine Lagarde met with Pakistani officials Thursday and said a team would visit Islamabad for talks on a possible bailout of its shaky economy.

Pakistan Finance Minister Asad Umar, who is attending the Fund's annual meeting in Bali, announced earlier this week that the government would seek talks with the IMF on a "stabilisation recovery programme".

Lagarde earlier Thursday said the IMF had yet to receive anything formal from Islamabad but that she would meet with the Pakistani delegation in Bali.

"During the meeting, they requested financial assistance from the IMF to help address Pakistan's economic challenges," Lagarde said in a statement.

"An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme." Prime Minister Imran Khan on Wednesday vowed to steer the country out of a looming balance-of-payments crisis, saying it needs US $10-12 billion.

"We will get out of this. I will take (the country) out of this," he said.

Khan's new administration took office in August vowing to weigh up whether to seek an IMF bailout as it sought other avenues of financing.

He has sought loans from friendly countries, promised to recover funds stolen by corrupt officials, and embarked on a series of populist austerity measures.

But help has been in short supply and economists' warnings have grown increasingly urgent.

Pakistan has gone to the IMF several times since the late 1980s. The most recent was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.&nbsp;

IMF chief Christine Lagarde met with Pakistani officials Thursday and said a team would visit Islamabad for talks on a possible bailout of its shaky economy. Pakistan Finance Minister Asad Umar, who is attending the Fund's annual meeting in Bali, announced earlier this week that the government would seek talks with the IMF on a "stabilisation recovery programme".

IMF chief Christine Lagarde met with Pakistani officials Thursday and said a team would visit Islamabad for talks on a possible bailout of its shaky economy. Pakistan Finance Minister Asad Umar, who is attending the Fund's annual meeting in Bali, announced earlier this week that the government would seek talks with the IMF on a "stabilisation recovery programme". Lagarde earlier Thursday said the IMF had yet to receive anything formal from Islamabad but that she would meet with the Pakistani delegation in Bali. "During the meeting, they requested financial assistance from the IMF to help address Pakistan's economic challenges," Lagarde said in a statement. "An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme." Prime Minister Imran Khan on Wednesday vowed to steer the country out of a looming balance-of-payments crisis, saying it needs US $10-12 billion. "We will get out of this. I will take (the country) out of this," he said. Khan's new administration took office in August vowing to weigh up whether to seek an IMF bailout as it sought other avenues of financing. He has sought loans from friendly countries, promised to recover funds stolen by corrupt officials, and embarked on a series of populist austerity measures. But help has been in short supply and economists' warnings have grown increasingly urgent. Pakistan has gone to the IMF several times since the late 1980s. The most recent was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

Pakistan finance minister meets IMF chief to seek bailout

Pakistan's&nbsp;new prime minister Imran Khan has pledged to steer the country out of the looming financial crisis by taking help from the IMF and "friendly countries".

Khan said that his country has two options, it can either go to friendly countries or&nbsp;it can also seek help from IMF.

"We will get out of this. I will take (the country) out of this. We have two options: one, we can go to friendly countries and ask them to bridge this gap; and second, that we go to the IMF," he said, adding that the government has decided to do "both".

Khan said the country needs $10-12 billion, which he dismissed as "not a major issue" in televised comments.

Blaming the condition of Pakistan on previous governments he said his government was forced to borrow money to pay back.

He said Pakistan is burdened due to debts incurred by the previous government and his government is constrained to borrow more money to pay back those debts.

Since he assumed office in August, Khan has pledged to take the country out of the balance of payments crisis.

He has taken several measures including auctioning of government properties and crowd funding to stabilise the shaky economy.

Khan also promised to&nbsp;recover funds stolen by corrupt officials.

Pakistan has gone to the IMF multiple times since the late 1980s. The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

Khan, who came to power on an anti-corruption agenda and promises of building an Islamic welfare state, encouraged citizens not to get frustrated.

"This is a very small period (of crisis). Our country is a rich country, it is blessed by Allah. This country will come out of crisis," he said.

Khan also announced that his government will begin a massive low-cost housing scheme with the aim of building five million homes in five years.

He clarified that the government is seeking funds from external sources only for the short term, as the economic reforms and austerity measures initiated by his government "will take six months to show results".&nbsp;&nbsp; &nbsp;

His government has come under heavy criticism after the decision to seek a bailout package from the IMF as Khan in the past had vowed never to seek such assistance and also attacked previous government for going to IMF for loans.

(With inputs from agencies)

Pakistan's new prime minister Imran Khan has pledged to steer the country out of the looming financial crisis by taking help from the IMF and "friendly countries".

Pakistan's new prime minister Imran Khan has pledged to steer the country out of the looming financial crisis by taking help from the IMF and "friendly countries". Khan said that his country has two options, it can either go to friendly countries or it can also seek help from IMF. "We will get out of this. I will take (the country) out of this. We have two options: one, we can go to friendly countries and ask them to bridge this gap; and second, that we go to the IMF," he said, adding that the government has decided to do "both". Khan said the country needs $10-12 billion, which he dismissed as "not a major issue" in televised comments. Blaming the condition of Pakistan on previous governments he said his government was forced to borrow money to pay back. He said Pakistan is burdened due to debts incurred by the previous government and his government is constrained to borrow more money to pay back those debts. Since he assumed office in August, Khan has pledged to take the country out of the balance of payments crisis. He has taken several measures including auctioning of government properties and crowd funding to stabilise the shaky economy. Khan also promised to recover funds stolen by corrupt officials. Pakistan has gone to the IMF multiple times since the late 1980s. The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis. Khan, who came to power on an anti-corruption agenda and promises of building an Islamic welfare state, encouraged citizens not to get frustrated. "This is a very small period (of crisis). Our country is a rich country, it is blessed by Allah. This country will come out of crisis," he said. Khan also announced that his government will begin a massive low-cost housing scheme with the aim of building five million homes in five years. He clarified that the government is seeking funds from external sources only for the short term, as the economic reforms and austerity measures initiated by his government "will take six months to show results". His government has come under heavy criticism after the decision to seek a bailout package from the IMF as Khan in the past had vowed never to seek such assistance and also attacked previous government for going to IMF for loans. (With inputs from agencies)

Will approach both friendly countries, IMF to overcome economic crisis: Imran Khan

Countries having more comfortable balance sheets have more space to respond to adverse developments in the economy, a top official of the International Monetary Fund (IMF) said Wednesday, urging nations to manage assets better.

"Countries that have a more comfortable balance sheet, have a stronger net worth position, have more space to respond to adverse developments in the economy or in the financial sector. So for example, the recession's associated with a financial crisis will be a shell lower and shorter-lived," Vitor Gasper, IMF Director of Fiscal Affairs Department, told PTI in an interview.

As such, he called for better asset management by countries, including India, information for which he said was not complete.&nbsp;

"When a government has a stronger asset management, it may be able to get three per cent of GDP in additional revenue and that's about the size of the corporate income tax revenue in average in advanced economies," Gasper said underscoring the importance of asset management.

The latest Fiscal Monitor report of the IMF says public sector assets of 31 countries, including India, are worth USD 101 trillion or 219 per cent of the GDP. At the same time, liabilities amount to 198 per cent of the GDP. These 31 countries account for 61 per cent of the world GDP. Public sector balance sheets provide the most comprehensive picture of public wealth, the report said.

Calling for a better asset management, Gasper said a country could get a considerable return out of a more professional and systematic management of public sector assets.

The assets of these 31 sample countries, he said, are very diverse. They include financial assets, state-owned companies like electricity and water supply. Natural resource wealth controlled by the public sector is important in several countries, especially in those that are rich in these resources. "Assets matter because of their sheer magnitude," he said.

Noting that liabilities amount to 198 per cent of the GDP, he said slightly less than half of this value i.e., 94 per cent of GDP corresponds to the most traditional concept of gross public debt of the general government.

Of the remainder, the most important item on the liability side is already accrued public sector pension liabilities at 46 per cent of GDP. And that corresponds to responsibilities that the public sector has already formed against the public sector's own employees.&nbsp;

"So, assets matter because of their size and once you have a list of assets and the control of the public sector, you have a substantial improvement in transparency and accountability..." Gasper said, arguing that balance sheet information complements the analysis that one gets from other conventional ways of looking at fiscal policy.

India, he said, is different from other countries in the sample in the sense that the IMF's information on the public sector of India is not comprehensive. "For India, we only have information on the central government and public sector corporations that depend on the central government," he said.&nbsp;

It's not a comprehensive picture of the public sector of India because subnational finances in India are very important and the subnational levels are quite active in many areas which are crucial for the Indian economy and finance, he noted.

"So, if we use the information we have on the central government and the public corporations that depend on the Indian central government and compare it with the other countries, India is almost exactly at the middle of the distribution, with a net worth which is slightly positive and a financial net worth which is negative," Gasper said.&nbsp;

"Assets and liabilities of the central government in India are considerable and as we have seen for the aggregate numbers, liabilities go well beyond government debt only, and assets are quite considerable," he added. Natural resources constitute a non-negligible part of the public wealth of India.&nbsp;

For 2016, the public sector, mineral and energy resources are estimated at 40.5 per cent of GDP, of which 3.6 per cent is oil and gas, about 25 per cent is coal and metals, and minerals is almost 12 per cent of GDP. So this is the composition. "If you would compare, India with natural resource-rich countries, you would see that India again would be more or less in the middle of a list of countries," he said.&nbsp;

The Russian Federation has a natural resource wealth which is estimated to be more than 300 per cent of GDP, Kazakhstan has more than 200 per cent, Peru at around 170 per cent and then, down from there. "But, India is in the middle of the distribution," he added.&nbsp;

Countries having more comfortable balance sheets have more space to respond to adverse developments in the economy, a top official of the International Monetary Fund (IMF) said Wednesday, urging nations to manage assets better.

Countries having more comfortable balance sheets have more space to respond to adverse developments in the economy, a top official of the International Monetary Fund (IMF) said Wednesday, urging nations to manage assets better. "Countries that have a more comfortable balance sheet, have a stronger net worth position, have more space to respond to adverse developments in the economy or in the financial sector. So for example, the recession's associated with a financial crisis will be a shell lower and shorter-lived," Vitor Gasper, IMF Director of Fiscal Affairs Department, told PTI in an interview. As such, he called for better asset management by countries, including India, information for which he said was not complete. "When a government has a stronger asset management, it may be able to get three per cent of GDP in additional revenue and that's about the size of the corporate income tax revenue in average in advanced economies," Gasper said underscoring the importance of asset management. The latest Fiscal Monitor report of the IMF says public sector assets of 31 countries, including India, are worth USD 101 trillion or 219 per cent of the GDP. At the same time, liabilities amount to 198 per cent of the GDP. These 31 countries account for 61 per cent of the world GDP. Public sector balance sheets provide the most comprehensive picture of public wealth, the report said. Calling for a better asset management, Gasper said a country could get a considerable return out of a more professional and systematic management of public sector assets. The assets of these 31 sample countries, he said, are very diverse. They include financial assets, state-owned companies like electricity and water supply. Natural resource wealth controlled by the public sector is important in several countries, especially in those that are rich in these resources. "Assets matter because of their sheer magnitude," he said. Noting that liabilities amount to 198 per cent of the GDP, he said slightly less than half of this value i.e., 94 per cent of GDP corresponds to the most traditional concept of gross public debt of the general government. Of the remainder, the most important item on the liability side is already accrued public sector pension liabilities at 46 per cent of GDP. And that corresponds to responsibilities that the public sector has already formed against the public sector's own employees. "So, assets matter because of their size and once you have a list of assets and the control of the public sector, you have a substantial improvement in transparency and accountability..." Gasper said, arguing that balance sheet information complements the analysis that one gets from other conventional ways of looking at fiscal policy. India, he said, is different from other countries in the sample in the sense that the IMF's information on the public sector of India is not comprehensive. "For India, we only have information on the central government and public sector corporations that depend on the central government," he said. It's not a comprehensive picture of the public sector of India because subnational finances in India are very important and the subnational levels are quite active in many areas which are crucial for the Indian economy and finance, he noted. "So, if we use the information we have on the central government and the public corporations that depend on the Indian central government and compare it with the other countries, India is almost exactly at the middle of the distribution, with a net worth which is slightly positive and a financial net worth which is negative," Gasper said. "Assets and liabilities of the central government in India are considerable and as we have seen for the aggregate numbers, liabilities go well beyond government debt only, and assets are quite considerable," he added. Natural resources constitute a non-negligible part of the public wealth of India. For 2016, the public sector, mineral and energy resources are estimated at 40.5 per cent of GDP, of which 3.6 per cent is oil and gas, about 25 per cent is coal and metals, and minerals is almost 12 per cent of GDP. So this is the composition. "If you would compare, India with natural resource-rich countries, you would see that India again would be more or less in the middle of a list of countries," he said. The Russian Federation has a natural resource wealth which is estimated to be more than 300 per cent of GDP, Kazakhstan has more than 200 per cent, Peru at around 170 per cent and then, down from there. "But, India is in the middle of the distribution," he added.

India needs better asset management: Top IMF official

India's debt is lower than the best or emerging market economies in the world, a top IMF official has said as he cautioned that the global debt has reached a new record high of USD 182 trillion in 2017.

Vitor Gasper, International Monetary Fund (IMF) Director of Fiscal Affairs Department, said India's debt was substantially less than the global debt as percentage of world Gross Domestic Product (GDP).

In India, private debt in 2017 was 54.5 per cent of the GDP and the general government debt was 70.4 per cent of the GDP, a total debt of about 125 of the GDP, according to the latest IMF figures. In comparison, the debt of China was 247 per cent of the GDP.

"So, it (India's debt) is substantially less than the global debt as the percentage of world GDP," Gasper told PTI.

India's debt is below the average of advanced economies and below the average of emerging market economies, he said.

"There is a positive relationship between the debt to GDP ratio and the level of GDP per capita. If you compare around the world with the best economies or emerging market economies, the level of debt in India is lower," the top IMF official said.

The IMF is very much stressing that global debt at USD 182 trillion in 2017 is at a new record high, he said.

Debt in advanced economies, since the global financial crisis, has increased quite substantially while the private sector has been very gradually leveraging, he added.

"If you look at emerging market economies, that includes India, you see that private debt in the last 10 years has increased quite substantially, although in the last two years, since the end of 2015, 2016 and 2017, there is a slowdown in the process of leveraging, but debt is very high and public debt is very high as well," Gasper said.

In the last few years in India private debt has declined from almost 60 per cent to 54.5.

"So, it's very stable. So, what you do see is that emerging market economies, which is where India is, there's a very fast buildup in private debt with a slowdown in the last two years, But India is basically steady. So, India is not an emerging market economy where leveraging is progressing fast," Gasper said.

According to Gasper, in emerging market economies private debt has risen much faster than public debt.

"Take China, for example. Total debt is 247 per cent of the GDP. But the dividing line between what is public and private debt in China is blurry. This blurriness reflects the very large number of public units and corporations, the complex layers of government, and widespread subnational off-budget borrowing," he said.

"As a result, estimates of 2017 public debt vary considerably: the official government debt figure is 37 per cent of GDP, while the data reported in the latest World Economic Outlook show it at 47 per cent of GDP, and the 'augmented' debt measure, which includes more off-budget borrowing by local governments, stands at 68 per cent of GDP," he said.

As China works to compile a full general government balance sheet, this picture will come into clearer focus, he added.

Gasper said China had substantial government assets, reflecting years of high infrastructure investment.

These assets are larger than its liabilities, putting net worth, the difference between assets and liabilities, well above 100 per cent of the GDP, the highest among emerging economies, he said.

"This is a significant buffer when compared to total debts of public corporations, particularly considering that public corporations also have assets. So, while debt-related risks in China are large, there are also buffers. Moreover, the government is taking steps to contain risks by reining in off-budget borrowing and strengthening oversight, resulting in a slowdown in the buildup of debt," he said.&nbsp;

India's debt is lower than the best or emerging market economies in the world, a top IMF official has said as he cautioned that the global debt has reached a new record high of USD 182 trillion in 2017.

India's debt is lower than the best or emerging market economies in the world, a top IMF official has said as he cautioned that the global debt has reached a new record high of USD 182 trillion in 2017. Vitor Gasper, International Monetary Fund (IMF) Director of Fiscal Affairs Department, said India's debt was substantially less than the global debt as percentage of world Gross Domestic Product (GDP). In India, private debt in 2017 was 54.5 per cent of the GDP and the general government debt was 70.4 per cent of the GDP, a total debt of about 125 of the GDP, according to the latest IMF figures. In comparison, the debt of China was 247 per cent of the GDP. "So, it (India's debt) is substantially less than the global debt as the percentage of world GDP," Gasper told PTI. India's debt is below the average of advanced economies and below the average of emerging market economies, he said. "There is a positive relationship between the debt to GDP ratio and the level of GDP per capita. If you compare around the world with the best economies or emerging market economies, the level of debt in India is lower," the top IMF official said. The IMF is very much stressing that global debt at USD 182 trillion in 2017 is at a new record high, he said. Debt in advanced economies, since the global financial crisis, has increased quite substantially while the private sector has been very gradually leveraging, he added. "If you look at emerging market economies, that includes India, you see that private debt in the last 10 years has increased quite substantially, although in the last two years, since the end of 2015, 2016 and 2017, there is a slowdown in the process of leveraging, but debt is very high and public debt is very high as well," Gasper said. In the last few years in India private debt has declined from almost 60 per cent to 54.5. "So, it's very stable. So, what you do see is that emerging market economies, which is where India is, there's a very fast buildup in private debt with a slowdown in the last two years, But India is basically steady. So, India is not an emerging market economy where leveraging is progressing fast," Gasper said. According to Gasper, in emerging market economies private debt has risen much faster than public debt. "Take China, for example. Total debt is 247 per cent of the GDP. But the dividing line between what is public and private debt in China is blurry. This blurriness reflects the very large number of public units and corporations, the complex layers of government, and widespread subnational off-budget borrowing," he said. "As a result, estimates of 2017 public debt vary considerably: the official government debt figure is 37 per cent of GDP, while the data reported in the latest World Economic Outlook show it at 47 per cent of GDP, and the 'augmented' debt measure, which includes more off-budget borrowing by local governments, stands at 68 per cent of GDP," he said. As China works to compile a full general government balance sheet, this picture will come into clearer focus, he added. Gasper said China had substantial government assets, reflecting years of high infrastructure investment. These assets are larger than its liabilities, putting net worth, the difference between assets and liabilities, well above 100 per cent of the GDP, the highest among emerging economies, he said. "This is a significant buffer when compared to total debts of public corporations, particularly considering that public corporations also have assets. So, while debt-related risks in China are large, there are also buffers. Moreover, the government is taking steps to contain risks by reining in off-budget borrowing and strengthening oversight, resulting in a slowdown in the buildup of debt," he said.

India's debt lower than best, emerging market economies: IMF

Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF's chief economist said on Tuesday.

Addressing a news conference at the IMF and World Bank annual meetings in Bali, the IMF's Maurice Obstfeld cautioned that increased Chinese involvement in Pakistan's economy could bring both benefits and risks.

Obstfeld said Pakistan is facing financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency he described as "too rigid" and over-valued.

Pakistan's Finance Ministry Asad Umar said on Monday the government would seek to open talks with the IMF in Bali this week for emergency financial assistance.

New Prime Minister Imran Khan had earlier sought alternatives to a second bailout program in five years from the IMF as it imposes austerity and limits his vision of an Islamic welfare state.

Obstfeld said that if the IMF does enter into talks with Pakistan this week on a possible new financing program, the goal would be reforms that would help Pakistan reach its "immense potential" without providing specific details.

"The government has expressed its desires to enact deep structural reforms that might break the cycle of Pakistan needing financial support from the Fund," he said.

Infrastructure needs

Pakistan needs more infrastructure development, Obstfeld added, and the country could benefit from China's role in supporting its project financing.

But China's involvement could also bring potential risks, he said.

"It is important that the design of the projects... be solid and excessive debts which cannot be repaid are avoided," the IMF chief economist said.

Islamabad has cut the size of the biggest Chinese "Silk Road" project in Pakistan, a reconstruction of the main rail line between the port city of Karachi and Peshawar in the northwest by $2 billion, citing government concerns about the country's debt levels.

The changes are part of Islamabad's efforts to rethink key Belt and Road Initiative projects in Pakistan, to which China has pledged about $60 billion in financing.

The Trump administration has been critical of China's Belt and Road initiative, saying that it has saddled some developing countries with debts they cannot afford to repay. In July, U.S. Secretary of State Mike Pompeo said there was "no rationale" for an IMF bailout of Pakistan that pays off Chinese loans to Pakistan.

Chinese officials have rejected criticism that the so-called China-Pakistan Economic Corridor projects have burdened Pakistan with unsustainable debts. Instead, the Chinese maintain, they have boosted the country's economic growth and provided 70,000 jobs.

Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF's chief economist said on Tuesday.

Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF's chief economist said on Tuesday. Addressing a news conference at the IMF and World Bank annual meetings in Bali, the IMF's Maurice Obstfeld cautioned that increased Chinese involvement in Pakistan's economy could bring both benefits and risks. Obstfeld said Pakistan is facing financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency he described as "too rigid" and over-valued. Pakistan's Finance Ministry Asad Umar said on Monday the government would seek to open talks with the IMF in Bali this week for emergency financial assistance. New Prime Minister Imran Khan had earlier sought alternatives to a second bailout program in five years from the IMF as it imposes austerity and limits his vision of an Islamic welfare state. Obstfeld said that if the IMF does enter into talks with Pakistan this week on a possible new financing program, the goal would be reforms that would help Pakistan reach its "immense potential" without providing specific details. "The government has expressed its desires to enact deep structural reforms that might break the cycle of Pakistan needing financial support from the Fund," he said. Infrastructure needs Pakistan needs more infrastructure development, Obstfeld added, and the country could benefit from China's role in supporting its project financing. But China's involvement could also bring potential risks, he said. "It is important that the design of the projects... be solid and excessive debts which cannot be repaid are avoided," the IMF chief economist said. Islamabad has cut the size of the biggest Chinese "Silk Road" project in Pakistan, a reconstruction of the main rail line between the port city of Karachi and Peshawar in the northwest by $2 billion, citing government concerns about the country's debt levels. The changes are part of Islamabad's efforts to rethink key Belt and Road Initiative projects in Pakistan, to which China has pledged about $60 billion in financing. The Trump administration has been critical of China's Belt and Road initiative, saying that it has saddled some developing countries with debts they cannot afford to repay. In July, U.S. Secretary of State Mike Pompeo said there was "no rationale" for an IMF bailout of Pakistan that pays off Chinese loans to Pakistan. Chinese officials have rejected criticism that the so-called China-Pakistan Economic Corridor projects have burdened Pakistan with unsustainable debts. Instead, the Chinese maintain, they have boosted the country's economic growth and provided 70,000 jobs.

IMF says not yet approached by Pakistan for financial assistance

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IMF cuts China's growth rate on 'negative effect of tariff actions' As the Trump administration turns the heat on China in the trade war, the International Monetary Fund (IMF) cut China's growth citing "negative effect of recent tariff actions".

IMF cuts China's growth rate on 'negative effect of tariff actions' As the Trump administration turns the heat on China in the trade war, the International Monetary Fund (IMF) cut China's growth citing "negative effect of recent tariff actions". US seeks thorough probe into disappearance of Saudi Journalist Khashoggi The US has sought a thorough and transparent investigation into the disappearance of a prominent Saudi journalist after President Donald Trump expressed concern over the scribe's whereabouts. Virgin Galatic space flight within weeks, not months: Richard Branson Virgin Galatic owner and British entrepreneur Richard Branson said he expects his rocket company to launch a space flight "within weeks, not months". "We will be in space with people not too long after that," he added. Alok Nath responds to rape allegations, says 'It was me who made her what she is' Actor Alok Nath, who has been accused of raping senior TV writer-director Vinta Nanda, responded to the allegations on Tuesday with an ambiguous answer. Suicide bomber kills eight at Afghan election rally, including candidate A suicide bomber killed eight people in Afghanistan's southern province of Helmand on Tuesday, including a candidate in upcoming parliamentary elections, the latest in a series of deadly attacks targeting the vote, officials said.

News brief: Big stories of the day

Prime Minister Imran Khan said on Sunday that Pakistan might need to return to the International Monetary Fund to address its mounting balance of payments crisis but would seek funding from friendly countries first.

Khan, who took office in August, blamed Pakistan's economic woes on the previous government and repeated a promise to recover billions of dollars he says corrupt officials have stashed abroad.

He has been reluctant to ask the IMF for emergency loans that would be the country's second bailout in five years.

But foreign reserves dropped by $627 million in late September to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. The weekly fall was the sharpest in years.

"We may go to IMF for loan to handle the country's financial issues," Khan told reporters. "But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan's State Bank that would help boost national reserves."

He did not name the countries or provide any details of the requests.

The IMF concluded a consultative visit last week with a warning that Pakistan needed to quickly secure "significant external financing" to stave off a crisis, though it did not suggest who could supply the money.

Any IMF bailout would likely include conditions to curb government spending, threatening Khan's campaign promise to build an Islamic welfare state.

Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but since the July election, none of Pakistan's allies including China and Saudi Arabia have offered emergency assistance despite high-level visits of officials from both nations.

Khan blamed the previous government for the economic situation.

"Pakistan is suffering huge internal and external debt ... caused by corruption of the former rulers," he said.

Pakistan's anti-corruption agency arrested opposition leader Shehbaz Sharif on Friday on charges he took bribes to improperly award a low-cost housing contract while he was governor of Punjab province.

Sharif is the brother of ex-Prime Minister Nawaz Sharif, who was removed by the Supreme Court last year and in June was sentenced to 10 years in prison by an anti-corruption court.

Both Sharifs deny wrongdoing, calling the cases politically motivated.

Commenting on Shehbaz Sharif's jailing, Khan said on Sunday: "He should have been arrested months ago".

Prime Minister Imran Khan said on Sunday that Pakistan might need to return to the International Monetary Fund to address its mounting balance of payments crisis but would seek funding from friendly countries first.

Prime Minister Imran Khan said on Sunday that Pakistan might need to return to the International Monetary Fund to address its mounting balance of payments crisis but would seek funding from friendly countries first. Khan, who took office in August, blamed Pakistan's economic woes on the previous government and repeated a promise to recover billions of dollars he says corrupt officials have stashed abroad. He has been reluctant to ask the IMF for emergency loans that would be the country's second bailout in five years. But foreign reserves dropped by $627 million in late September to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. The weekly fall was the sharpest in years. "We may go to IMF for loan to handle the country's financial issues," Khan told reporters. "But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan's State Bank that would help boost national reserves." He did not name the countries or provide any details of the requests. The IMF concluded a consultative visit last week with a warning that Pakistan needed to quickly secure "significant external financing" to stave off a crisis, though it did not suggest who could supply the money. Any IMF bailout would likely include conditions to curb government spending, threatening Khan's campaign promise to build an Islamic welfare state. Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but since the July election, none of Pakistan's allies including China and Saudi Arabia have offered emergency assistance despite high-level visits of officials from both nations. Khan blamed the previous government for the economic situation. "Pakistan is suffering huge internal and external debt ... caused by corruption of the former rulers," he said. Pakistan's anti-corruption agency arrested opposition leader Shehbaz Sharif on Friday on charges he took bribes to improperly award a low-cost housing contract while he was governor of Punjab province. Sharif is the brother of ex-Prime Minister Nawaz Sharif, who was removed by the Supreme Court last year and in June was sentenced to 10 years in prison by an anti-corruption court. Both Sharifs deny wrongdoing, calling the cases politically motivated. Commenting on Shehbaz Sharif's jailing, Khan said on Sunday: "He should have been arrested months ago".

Imran Khan says Pakistan may go to IMF to address balance of payments crisis

The International Monetary Fund has called on Pakistan’s new government to act fast to stabilise its teetering economy, warning growth will likely slow and inflation rise, but made no mention of a new bailout deal.

Former cricketer Imran Khan’s new administration had vowed to decide by the end of September if it would seek an IMF bailout to shore up the economy as it faces a balance-of-payments crisis and dwindling reserves.

However, it has yet to announce a deal as its seeks other arenas of financing and launched a highly publicised austerity drive that has included auctioning off government-owned luxury automobiles and buffaloes.

The IMF said in a statement released late Thursday that Pakistan was in need of significant external financing in the near term and recommended upping gas and power tariffs while also pushing for exchange rate “flexibility” and monetary policy tightening.

“These steps would help reduce current account pressures and improve debt sustainability,” said the fund in a statement.

But it warned that tough days may lay ahead as higher oil prices and tightening financial conditions for emerging markets will likely add to Pakistan's economic woes.&nbsp;

"In this environment, economic growth will likely slow significantly, and inflation will rise," said the IMF.&nbsp;

Pakistan has gone to the IMF repeatedly since the late 1980s. The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

For months analysts have warned Khan’s new government must act quickly to stem a new current account crisis, which could undermine its currency and its ability to repay billions in debts or purchase imports.

The US, one of the IMF's biggest donors, has raised fears Pakistan could use any bailout money to repay mounting loans from China, sparking criticism from Islamabad.

Pakistan’s budget deficit has climbed steadily over the past five years, and foreign currency reserves have declined. The rupee has been repeatedly devalued in the past year, fuelling inflation.

Khan has vowed to improve trade with India, increase the ease of doing business and boost tax collection but since taking office in August is yet to roll out a comprehensive plan aimed at tackling the country’s economic fortunes.

The state of Pakistan's finances could also undermine one of Khan's most popular promises to construct an "Islamic welfare state" based on increased spending on education and health.

The IMF's warnings come days after the Asian Development Bank said Pakistan’s economy could shrink by one per cent in the current fiscal year.&nbsp;

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The International Monetary Fund has called on Pakistan’s new government to act fast to stabilise its teetering economy, warning growth will likely slow and inflation rise, but made no mention of a new bailout deal.

The International Monetary Fund has called on Pakistan’s new government to act fast to stabilise its teetering economy, warning growth will likely slow and inflation rise, but made no mention of a new bailout deal. Former cricketer Imran Khan’s new administration had vowed to decide by the end of September if it would seek an IMF bailout to shore up the economy as it faces a balance-of-payments crisis and dwindling reserves. However, it has yet to announce a deal as its seeks other arenas of financing and launched a highly publicised austerity drive that has included auctioning off government-owned luxury automobiles and buffaloes. The IMF said in a statement released late Thursday that Pakistan was in need of significant external financing in the near term and recommended upping gas and power tariffs while also pushing for exchange rate “flexibility” and monetary policy tightening. “These steps would help reduce current account pressures and improve debt sustainability,” said the fund in a statement. But it warned that tough days may lay ahead as higher oil prices and tightening financial conditions for emerging markets will likely add to Pakistan's economic woes. "In this environment, economic growth will likely slow significantly, and inflation will rise," said the IMF. Pakistan has gone to the IMF repeatedly since the late 1980s. The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis. For months analysts have warned Khan’s new government must act quickly to stem a new current account crisis, which could undermine its currency and its ability to repay billions in debts or purchase imports. The US, one of the IMF's biggest donors, has raised fears Pakistan could use any bailout money to repay mounting loans from China, sparking criticism from Islamabad. Pakistan’s budget deficit has climbed steadily over the past five years, and foreign currency reserves have declined. The rupee has been repeatedly devalued in the past year, fuelling inflation. Khan has vowed to improve trade with India, increase the ease of doing business and boost tax collection but since taking office in August is yet to roll out a comprehensive plan aimed at tackling the country’s economic fortunes. The state of Pakistan's finances could also undermine one of Khan's most popular promises to construct an "Islamic welfare state" based on increased spending on education and health. The IMF's warnings come days after the Asian Development Bank said Pakistan’s economy could shrink by one per cent in the current fiscal year. ×

IMF calls for more action in Pakistan, but no word on bailout

The International Monetary Fund (IMF) warned on Friday that Pakistan needs to quickly secure "significant external financing" to stave off a foreign currency crisis, though it did not suggest who could supply the money.&nbsp;

The IMF, also said more action is needed to stabilise the economy while praising steps taken in the past year.

The statements came a day after an IMF team wrapped up an official visit to Pakistan.&nbsp;

The new government of Prime Minister Imran Khan has been reluctant to ask the IMF for a second bailout in five years.

But foreign reserves dropped by $627 million last week to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. Last week`s fall was the sharpest in years.

Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but so far none of its allies including China and Saudi Arabia have offered such a large sum despite high-level visits from officials of both.

Friday`s IMF statement on Friday did not use the word "bailout" but made clear Pakistan needs to find some source of outside cash influx soon.

"Decisive policy action and significant external financing will be needed to stabilise the economy," the statement said, quoting delegation leader Harald Finger as saying that both are required "in the near term".

Many economists believe Pakistan eventually will have no choice but to go back to the IMF.&nbsp;

However, as the world`s last-resort lender, the IMF places strict conditions on aid, pushing for cuts in government budget deficits. This would make it difficult for Khan to fulfil his campaign promises for an "Islamic welfare state".

The IMF urged Khan`s government expand reform measures taken in the past year. The past measures include raising interest rates by 275 basis points and have the rupee depreciation by about 20 per cent since December.

The lender said and controls on the rupee devaluation should be loosened and interest rates raised further as well as closing the fiscal deficit.

The lender said there should be "more exchange-rate flexibility" and further increases in interest rates. There is also a need to reduce the fiscal deficit, it said.

"Recent policy measures are steps in the right direction, but not yet sufficient," the IMF statement said.

The International Monetary Fund (IMF) warned on Friday that Pakistan needs to quickly secure "significant external financing" to stave off a foreign currency crisis, though it did not suggest who could supply the money.

The International Monetary Fund (IMF) warned on Friday that Pakistan needs to quickly secure "significant external financing" to stave off a foreign currency crisis, though it did not suggest who could supply the money. The IMF, also said more action is needed to stabilise the economy while praising steps taken in the past year. The statements came a day after an IMF team wrapped up an official visit to Pakistan. The new government of Prime Minister Imran Khan has been reluctant to ask the IMF for a second bailout in five years. But foreign reserves dropped by $627 million last week to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. Last week`s fall was the sharpest in years. Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but so far none of its allies including China and Saudi Arabia have offered such a large sum despite high-level visits from officials of both. Friday`s IMF statement on Friday did not use the word "bailout" but made clear Pakistan needs to find some source of outside cash influx soon. "Decisive policy action and significant external financing will be needed to stabilise the economy," the statement said, quoting delegation leader Harald Finger as saying that both are required "in the near term". Many economists believe Pakistan eventually will have no choice but to go back to the IMF. However, as the world`s last-resort lender, the IMF places strict conditions on aid, pushing for cuts in government budget deficits. This would make it difficult for Khan to fulfil his campaign promises for an "Islamic welfare state". The IMF urged Khan`s government expand reform measures taken in the past year. The past measures include raising interest rates by 275 basis points and have the rupee depreciation by about 20 per cent since December. The lender said and controls on the rupee devaluation should be loosened and interest rates raised further as well as closing the fiscal deficit. The lender said there should be "more exchange-rate flexibility" and further increases in interest rates. There is also a need to reduce the fiscal deficit, it said. "Recent policy measures are steps in the right direction, but not yet sufficient," the IMF statement said.

Pakistan needs to secure 'significant external financing': IMF

Economist Gita Gopinath was appointed as International Monetary Fund's chief economist on Monday, the IMF said in a statement.&nbsp;

Gopinath will assume office at the end of 2018 after her predecessor Maurice (Maury) Obstfeld retires, news agency PTI reported.

Born on December 8, 1971, in Kolkata, 46-year-old Gopinath went to the University of Delhi for her Bachelors and Masters degree in economics after which she went on to earn her PhD in economics from Princeton University in 2001. She also has a Masters degree in economics from the University of Washington. &nbsp;

"Her research focuses on International Finance and Macroeconomics. She is co-director of the International Finance and Macroeconomics program at the National Bureau of Economic Research, a visiting scholar at the Federal Reserve Bank of Boston, member of the economic advisory panel of the Federal Reserve Bank of New York, Economic Adviser to the Chief Minister of Kerala state (India), co-editor of the American Economic Review, co-editor of the current Handbook of International Economics and was managing editor of the Review of Economic Studies," her profile reads on Harvard University's official website.

Gopinath also served as a member of the Eminent Persons Advisory Group on G-20 Matters for India's Ministry of Finance. In 2018 she was elected a fellow of the American Academy of Arts and Sciences. In 2014, she was named one of the top 25 economists under 45 by the IMF and she was chosen as a Young Global Leader by the World Economic Forum in 2011.&nbsp;

She also served as the Economic Adviser to Chief Minister of Kerala State, India.

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IMF Managing Director Christine <a href="https://twitter.com/Lagarde?ref_src=twsrc%5Etfw">@Lagarde</a> appoints Harvard’s Gita Gopinath as IMF Chief Economist, replacing Maury Obstfeld who will retire from IMF in December. <a href="https://t.co/M6UV5qH714">https://t.co/M6UV5qH714</a> <a href="https://t.co/k16ztkYIwi">pic.twitter.com/k16ztkYIwi</a>
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At present, Gopinath serves as the John Zwaanstra Professor of International Studies and Economics at Harvard University.

"Gopinath is one of the world's outstanding economists, with impeccable academic credentials, a proven track record of intellectual leadership, and extensive international experience," IMF Managing Director Christine Lagarde said.

Economist Gita Gopinath was appointed as International Monetary Fund's chief economist on Monday, the IMF said in a statement. Gopinath will assume office at the end of 2018 after her predecessor Maurice (Maury) Obstfeld retires, news agency PTI reported.

Economist Gita Gopinath was appointed as International Monetary Fund's chief economist on Monday, the IMF said in a statement. Gopinath will assume office at the end of 2018 after her predecessor Maurice (Maury) Obstfeld retires, news agency PTI reported. Born on December 8, 1971, in Kolkata, 46-year-old Gopinath went to the University of Delhi for her Bachelors and Masters degree in economics after which she went on to earn her PhD in economics from Princeton University in 2001. She also has a Masters degree in economics from the University of Washington. "Her research focuses on International Finance and Macroeconomics. She is co-director of the International Finance and Macroeconomics program at the National Bureau of Economic Research, a visiting scholar at the Federal Reserve Bank of Boston, member of the economic advisory panel of the Federal Reserve Bank of New York, Economic Adviser to the Chief Minister of Kerala state (India), co-editor of the American Economic Review, co-editor of the current Handbook of International Economics and was managing editor of the Review of Economic Studies," her profile reads on Harvard University's official website. Gopinath also served as a member of the Eminent Persons Advisory Group on G-20 Matters for India's Ministry of Finance. In 2018 she was elected a fellow of the American Academy of Arts and Sciences. In 2014, she was named one of the top 25 economists under 45 by the IMF and she was chosen as a Young Global Leader by the World Economic Forum in 2011. She also served as the Economic Adviser to Chief Minister of Kerala State, India. IMF Managing Director Christine @Lagarde appoints Harvard’s Gita Gopinath as IMF Chief Economist, replacing Maury Obstfeld who will retire from IMF in December. https://t.co/M6UV5qH714 pic.twitter.com/k16ztkYIwi — IMF (@IMFNews) October 1, 2018 × At present, Gopinath serves as the John Zwaanstra Professor of International Studies and Economics at Harvard University. "Gopinath is one of the world's outstanding economists, with impeccable academic credentials, a proven track record of intellectual leadership, and extensive international experience," IMF Managing Director Christine Lagarde said.

India-born Gita Gopinath appointed IMF chief economist

President Mauricio Macri said Monday that crisis-hit Argentina will receive additional funding from the International Monetary Fund and vowed to avoid a default.

"We are going to have more support from the IMF, although I cannot say how much because negotiations are ongoing," said Macri, whose government agreed on a three-year, $50 billion rescue lending program with the IMF in June.

"There is no chance that Argentina will default," he added at an event hosted by Bloomberg television in New York.

The IMF said last week that its team of negotiators in Buenos Aires had made "important progress" on the economic reforms needed to strengthen the program supported by the Washington-based crisis lender.

An IMF spokesman said a budget proposal submitted by Macri's government was a key element in the reforms needed for a new loan package while adding that there was still no timeframe for finalizing the aid.

While the proposed austerity budget has been welcomed by the IMF, it has sparked street protests in Argentina.&nbsp;

Macri, who is in New York to attend this week's UN General Assembly, said he was trying to restore economic confidence.

"We are working with the IMF team and we'll present something that will bring confidence, more confidence than what we've had in the last 10 days when markets have turned around and things are moving better," he said.

"It's a very clear monetary policy that will show where we are going, that will show that we are really going to drop dramatically down the inflation and our needs for financial external support."

President Mauricio Macri said Monday that crisis-hit Argentina will receive additional funding from the International Monetary Fund and vowed to avoid a default.

President Mauricio Macri said Monday that crisis-hit Argentina will receive additional funding from the International Monetary Fund and vowed to avoid a default. "We are going to have more support from the IMF, although I cannot say how much because negotiations are ongoing," said Macri, whose government agreed on a three-year, $50 billion rescue lending program with the IMF in June. "There is no chance that Argentina will default," he added at an event hosted by Bloomberg television in New York. The IMF said last week that its team of negotiators in Buenos Aires had made "important progress" on the economic reforms needed to strengthen the program supported by the Washington-based crisis lender. An IMF spokesman said a budget proposal submitted by Macri's government was a key element in the reforms needed for a new loan package while adding that there was still no timeframe for finalizing the aid. While the proposed austerity budget has been welcomed by the IMF, it has sparked street protests in Argentina. Macri, who is in New York to attend this week's UN General Assembly, said he was trying to restore economic confidence. "We are working with the IMF team and we'll present something that will bring confidence, more confidence than what we've had in the last 10 days when markets have turned around and things are moving better," he said. "It's a very clear monetary policy that will show where we are going, that will show that we are really going to drop dramatically down the inflation and our needs for financial external support."

Argentina to get more IMF funds, won't default: Macri

In present uncertain financial and political situation, it is certain that Pakistan Government will seek foreign aid and loans for survival.

According to informed sources in Islamabad, the government wants to acquire financial strength before the July 25 general elections.

Sources quoted economic pundits in the government as suggesting that the current account deficit can be stabilised by using rapidly dwindling foreign currency reserves.

There is growing speculation that the government will have to seek a loan package from the International Monetary Fund (IMF) following the elections, for the second time since 2013, amid fears of being faced with a balance of payments crisis.

Caretaker Finance Minister Shamshad Akhtar told a press conference in Islamabad on Tuesday that the government has to finance this trade deficit gap of USD 25 billion.

The announcement came hours after the State Bank of Pakistan devalued the rupee by 3.7 per cent, the third devaluation since December. It is also saddled with a heavy public debt - 70 per cent of GDP, according to Akhtar - along with a yawning fiscal deficit.

The economy grew by 5.8 per cent during 2017-18, missing a government target by two per cent, according to documents from the finance ministry. Plagued for years by a Taliban insurgency, it has been battling to get its shaky economy back on track and end the energy crisis crippling industry.

The growth in GDP comes amid structural reforms, an improved energy sector and China's ambitious multi-billion dollar infrastructure project - the China-Pakistan Economic Corridor - linking its western province of Xinjiang to the Arabian Sea via Pakistan. However, fears remain about Pakistan's ability to repay the Chinese loans, with much of their terms shrouded in secrecy.

The Pakistani rupee slumped 3.8 per cent against the dollar on Monday before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank amid a balance of payments crisis.

&nbsp;

The rupee drop threatens to squeeze consumers, coming just days before Eid-ul-Fitr and ahead of the July 25 general election.

The apparent devaluation shows signs of vulnerability in the country's nearly USD 300 billion economy, as dwindling foreign reserves and a widening current account deficit trigger speculation about going back to the International Monetary Fund for loans for the second time since 2013.

In December and March, the rupee was devalued, each time by about five percent by the central bank. Pakistan's economy is expected to expand by close to six percent this year, the fastest pace in more than a decade, but a widening of the current account deficit has brought new worries.

The current account deficit now stands at USD 14 billion, around 5.3 percent of gross domestic product, an SBP official said.

The economic outlook has been hurt by the fast depletion of foreign currency reserves, which now stand at just over USD 10 billion.

Pakistan is currently in discussions with China for loans to ease pressure on its foreign currency reserves. Over the weekend, the shortage of foreign currency widened the spread at which the rupee is traded in the open market and the interbank market to four rupees.

The Supreme Court on Monday summoned the governor of State Bank of Pakistan (SBP) and federal finance secretary to explain what steps were being taken for encouraging people to declare their foreign bank accounts and assets accumulated abroad.

Earlier, a three-judge bench headed by Chief Justice of Pakistan Mian Saqib Nisar expressed displeasure over the non-appearance of the SBP governor and the finance secretary.

The chief justice observed that the court was dealing with an important case and the SBP governor and the finance secretary did not bother to attend the proceedings.

Justice Umar Atta Bandial and Justice Ijazul Ahsan were the other members on the bench. Federal Board of Revenue (FBR) Chairman Tariq Pasha and a director of the SBP were present in the court.

Rejecting the suggested of an additional attorney general to postpone hearing for after the Eidul Fitr holidays, the bench sought appearance of both the SBP governor and finance secretary after two hours. Later, the bench adjourned hearing for Tuesday.

During Monday's hearing, Chief Justice Nisar regretted that every newborn in Pakistan was under huge loans due to wrong policies of the governments. "Dams are not being built, standard of education is going down, garbage is being disposed of into sea but people are allowed to take their money abroad unchecked," lamented the chief justice.

To a court query, the FBR chairman disclosed that Rs100 billion had been paid to tax filers under the head of sales tax return, however disbursement of Rs105 billion was still pending.

Chief Justice Nisar also expressed concern over decreasing exports and rampant smuggling in the country. FBR chief Pasha sought permission to give an in-camera briefing to the judges on the issue of smuggling, which was allowed by the chief justice.

The views expressed in the above article are that of Mr. M. Sarwar, Chief Editor, The Nation.

The government wants to acquire financial strength before the July 25 general elections

In present uncertain financial and political situation, it is certain that Pakistan Government will seek foreign aid and loans for survival. According to informed sources in Islamabad, the government wants to acquire financial strength before the July 25 general elections. Sources quoted economic pundits in the government as suggesting that the current account deficit can be stabilised by using rapidly dwindling foreign currency reserves. There is growing speculation that the government will have to seek a loan package from the International Monetary Fund (IMF) following the elections, for the second time since 2013, amid fears of being faced with a balance of payments crisis. Caretaker Finance Minister Shamshad Akhtar told a press conference in Islamabad on Tuesday that the government has to finance this trade deficit gap of USD 25 billion. The announcement came hours after the State Bank of Pakistan devalued the rupee by 3.7 per cent, the third devaluation since December. It is also saddled with a heavy public debt - 70 per cent of GDP, according to Akhtar - along with a yawning fiscal deficit. The economy grew by 5.8 per cent during 2017-18, missing a government target by two per cent, according to documents from the finance ministry. Plagued for years by a Taliban insurgency, it has been battling to get its shaky economy back on track and end the energy crisis crippling industry. The growth in GDP comes amid structural reforms, an improved energy sector and China's ambitious multi-billion dollar infrastructure project - the China-Pakistan Economic Corridor - linking its western province of Xinjiang to the Arabian Sea via Pakistan. However, fears remain about Pakistan's ability to repay the Chinese loans, with much of their terms shrouded in secrecy. The Pakistani rupee slumped 3.8 per cent against the dollar on Monday before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank amid a balance of payments crisis. The rupee drop threatens to squeeze consumers, coming just days before Eid-ul-Fitr and ahead of the July 25 general election. The apparent devaluation shows signs of vulnerability in the country's nearly USD 300 billion economy, as dwindling foreign reserves and a widening current account deficit trigger speculation about going back to the International Monetary Fund for loans for the second time since 2013. In December and March, the rupee was devalued, each time by about five percent by the central bank. Pakistan's economy is expected to expand by close to six percent this year, the fastest pace in more than a decade, but a widening of the current account deficit has brought new worries. The current account deficit now stands at USD 14 billion, around 5.3 percent of gross domestic product, an SBP official said. The economic outlook has been hurt by the fast depletion of foreign currency reserves, which now stand at just over USD 10 billion. Pakistan is currently in discussions with China for loans to ease pressure on its foreign currency reserves. Over the weekend, the shortage of foreign currency widened the spread at which the rupee is traded in the open market and the interbank market to four rupees. The Supreme Court on Monday summoned the governor of State Bank of Pakistan (SBP) and federal finance secretary to explain what steps were being taken for encouraging people to declare their foreign bank accounts and assets accumulated abroad. Earlier, a three-judge bench headed by Chief Justice of Pakistan Mian Saqib Nisar expressed displeasure over the non-appearance of the SBP governor and the finance secretary. The chief justice observed that the court was dealing with an important case and the SBP governor and the finance secretary did not bother to attend the proceedings. Justice Umar Atta Bandial and Justice Ijazul Ahsan were the other members on the bench. Federal Board of Revenue (FBR) Chairman Tariq Pasha and a director of the SBP were present in the court. Rejecting the suggested of an additional attorney general to postpone hearing for after the Eidul Fitr holidays, the bench sought appearance of both the SBP governor and finance secretary after two hours. Later, the bench adjourned hearing for Tuesday. During Monday's hearing, Chief Justice Nisar regretted that every newborn in Pakistan was under huge loans due to wrong policies of the governments. "Dams are not being built, standard of education is going down, garbage is being disposed of into sea but people are allowed to take their money abroad unchecked," lamented the chief justice. To a court query, the FBR chairman disclosed that Rs100 billion had been paid to tax filers under the head of sales tax return, however disbursement of Rs105 billion was still pending. Chief Justice Nisar also expressed concern over decreasing exports and rampant smuggling in the country. FBR chief Pasha sought permission to give an in-camera briefing to the judges on the issue of smuggling, which was allowed by the chief justice. The views expressed in the above article are that of Mr. M. Sarwar, Chief Editor, The Nation.

Pakistan's economy in limbo ahead of general elections