World Bank Comes Up With A New Plan to Provide Aid To China.

Gravitas: Why is China Borrowing From World Bank?

The <a href="https://www.wionews.com/world/china-denies-world-bank-cuts-related-to-uighur-rights-concerns-261605">World Bank</a> on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025, despite the objections of US&nbsp;Treasury Secretary Steven Mnuchin.

Mnuchin told a House Financial Services Committee hearing that the Treasury's representative on the bank's board had objected on to the plan on Wednesday, adding he wanted the World Bank to "graduate" China from its concessional loan programs for low- and middle-income countries.

The new five-year plan calls for lending to "gradually decline" from the previous five-year average of $1.8 billion.

It was published on Thursday afternoon after the World Bank's board "expressed broad support" for the multilateral development lender's engagement in China's structural and environmental reforms.

The World Bank loaned China $1.3 billion in the fiscal 2019 year ended June 30, down from about $2.4 billion during fiscal 2017.

"Lending levels may fluctuate up and down from year to year due to normal pipeline management based on project readiness," the World Bank said in the new plan.

It said Beijing had requested continued financing from the World Bank's International Bank for Reconstruction and Development division "as platforms for reform, institution building and knowledge transfer."

But the decline in lending is not fast enough for Mnuchin, who has argued China is too wealthy for such international aid when it is lending hundreds of billions of dollars of its own to poor countries through its <a href="https://www.wionews.com/south-asia/china-will-take-belt-and-road-initiative-all-over-unless-other-countries-provide-alternative-warns-sri-lankas-gotabaya-rajapaksa-265560">Belt and Road infrastructure</a> drive.

US&nbsp;lawmakers are also increasingly expressing concerns that US&nbsp;taxpayer funds loaned through the World Bank to China will enable human rights abuses and unfair economic competition with the United States.

In Senate floor remarks on Thursday, Senate Finance Committee Chairman Charles Grassley cited alleged human rights abuses in Xinjiang associated with detention camps for Muslim Uighurs in criticizing the World Bank lending plan.

"The World Bank, using American tax dollars, should not be lending to wealthy countries that <a href="https://www.wionews.com/world/chinese-media-blasts-us-for-uighur-bill-calls-for-action-266285">violate the human rights</a> of their citizens and attempt to dominate weaker countries either militarily or economically," Grassley said.

China defended its partnership with the World Bank.

"We are willing to make an effort and work together (with the bank) to summarize and share China's success and experience in poverty alleviation with other developing countries, to realize a long-term sustainable development for these countries," foreign ministry spokeswoman Hua Chunying told a news briefing Friday.

Although the United States hold an effective veto power over major board decisions such as capital increases and leadership appointments, the latest China lending plan did not require a formal vote.

Mnuchin told lawmakers he expected the World Bank's lending to China to fall below $1 billion during the current fiscal year, with more repayment funds flowing back to the lender from China than loan funds going out.

The World Bank said the loans in the five-year plan would be aimed at advancing market and fiscal reforms, promoting greener growth and increasing citizens' access to health and social services.

The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025, despite the objections of US Treasury Secretary Steven Mnuchin.

The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025, despite the objections of US Treasury Secretary Steven Mnuchin. Mnuchin told a House Financial Services Committee hearing that the Treasury's representative on the bank's board had objected on to the plan on Wednesday, adding he wanted the World Bank to "graduate" China from its concessional loan programs for low- and middle-income countries. The new five-year plan calls for lending to "gradually decline" from the previous five-year average of $1.8 billion. It was published on Thursday afternoon after the World Bank's board "expressed broad support" for the multilateral development lender's engagement in China's structural and environmental reforms. The World Bank loaned China $1.3 billion in the fiscal 2019 year ended June 30, down from about $2.4 billion during fiscal 2017. "Lending levels may fluctuate up and down from year to year due to normal pipeline management based on project readiness," the World Bank said in the new plan. It said Beijing had requested continued financing from the World Bank's International Bank for Reconstruction and Development division "as platforms for reform, institution building and knowledge transfer." But the decline in lending is not fast enough for Mnuchin, who has argued China is too wealthy for such international aid when it is lending hundreds of billions of dollars of its own to poor countries through its Belt and Road infrastructure drive. US lawmakers are also increasingly expressing concerns that US taxpayer funds loaned through the World Bank to China will enable human rights abuses and unfair economic competition with the United States. In Senate floor remarks on Thursday, Senate Finance Committee Chairman Charles Grassley cited alleged human rights abuses in Xinjiang associated with detention camps for Muslim Uighurs in criticizing the World Bank lending plan. "The World Bank, using American tax dollars, should not be lending to wealthy countries that violate the human rights of their citizens and attempt to dominate weaker countries either militarily or economically," Grassley said. China defended its partnership with the World Bank. "We are willing to make an effort and work together (with the bank) to summarize and share China's success and experience in poverty alleviation with other developing countries, to realize a long-term sustainable development for these countries," foreign ministry spokeswoman Hua Chunying told a news briefing Friday. Although the United States hold an effective veto power over major board decisions such as capital increases and leadership appointments, the latest China lending plan did not require a formal vote. Mnuchin told lawmakers he expected the World Bank's lending to China to fall below $1 billion during the current fiscal year, with more repayment funds flowing back to the lender from China than loan funds going out. The World Bank said the loans in the five-year plan would be aimed at advancing market and fiscal reforms, promoting greener growth and increasing citizens' access to health and social services.

World Bank adopts $1 billion-plus annual China lending plan over US objections

China said Tuesday that a <a href="https://www.wionews.com/world/world-bank-ends-funding-to-controversial-uighur-schools-in-china-261467">World Bank decision</a> to&nbsp;scale back a vocational education project was unrelated to allegations of mistreatment of minority Muslim Uighurs in the northwestern Xinjiang region.

The World Bank launched a review in August of the programme after Foreign Policy magazine reported that a school which benefited from a tranche of the $50 million loans to China bought "barbed wire, gas launchers, and body armour".

Rights groups and experts say more than one million mostly Muslim ethnic minorities have been interned in re-education camps in Xinjiang, where they are being tortured and forced to renounce their religion.

The World Bank said on Monday that its review "did not substantiate the allegations" but that it would cut funding to the scheme's "partner schools" as a precautionary measure because the schools were dispersed and difficult to monitor.

But Chinese foreign ministry spokesman Geng Shuang said Tuesday that the World Bank's review of the programme "clarifies the truth while strongly rejecting the relevant accusations."

The "adjustments" announced by the World Bank are instead based on "based on the programmes' actual needs," said Geng at a regular press briefing.

Geng said that the inspection showed that the project did not suffer from the problems "hyped up by foreign media."

The World Bank statement said Monday that the "scope and footprint of the project (with the partner schools) is being reduced."

"Specifically, the project component that involves the partner schools in Xinjiang is being closed," it said.

<a href="https://www.wionews.com/photos/a-day-in-the-life-of-uighurs-251734">In pictures:&nbsp;A day in the life of China’s persecuted Uighur community</a>

China said Tuesday that a World Bank decision to scale back a vocational education project was unrelated to allegations of mistreatment of minority Muslim Uighurs in the northwestern Xinjiang region.

China said Tuesday that a World Bank decision to scale back a vocational education project was unrelated to allegations of mistreatment of minority Muslim Uighurs in the northwestern Xinjiang region. The World Bank launched a review in August of the programme after Foreign Policy magazine reported that a school which benefited from a tranche of the $50 million loans to China bought "barbed wire, gas launchers, and body armour". Rights groups and experts say more than one million mostly Muslim ethnic minorities have been interned in re-education camps in Xinjiang, where they are being tortured and forced to renounce their religion. The World Bank said on Monday that its review "did not substantiate the allegations" but that it would cut funding to the scheme's "partner schools" as a precautionary measure because the schools were dispersed and difficult to monitor. But Chinese foreign ministry spokesman Geng Shuang said Tuesday that the World Bank's review of the programme "clarifies the truth while strongly rejecting the relevant accusations." The "adjustments" announced by the World Bank are instead based on "based on the programmes' actual needs," said Geng at a regular press briefing. Geng said that the inspection showed that the project did not suffer from the problems "hyped up by foreign media." The World Bank statement said Monday that the "scope and footprint of the project (with the partner schools) is being reduced." "Specifically, the project component that involves the partner schools in Xinjiang is being closed," it said. In pictures: A day in the life of China’s persecuted Uighur community

China denies World Bank cuts related to Uighur rights concerns

The World Bank urged protest-hit Lebanon on Wednesday to form a new government quickly, warning that an economic downturn would deepen poverty and worsen unemployment.

Students boycotted classes during the day and anti-government demonstrations continued into the evening.

Since October 17, an unprecedented protest movement has targeted a political class deemed incompetent and corrupt. Demonstrations have continued despite the government's resignation last week.

The outgoing cabinet is serving in a caretaker capacity as leaders haggle over the make-up of the next government -- a delay donors say the debt-saddled country can ill afford.

The World Bank warned Wednesday that a "rapid government formation that meets the expectations of all Lebanese people is the most urgent step".

Representatives from the Washington-based global lender met earlier with embattled President Michel Aoun, who has pledged various reforms to combat corruption following the protests.

The World Bank had forecast a contraction of 0.2 percent before the turmoil, but said Wednesday that it now expected Lebanon's recession "to be even more significant".

Without quick steps to address the crisis, about half of Lebanon's population could fall into poverty and unemployment could "rise sharply", the lender said in a statement.

"With every passing day, the situation is becoming more acute," World Bank regional director Saroj Kumar Jha warned.

Corruption

Even before protests erupted last month, growth in Lebanon had stalled following repeated political deadlocks in recent years, compounded by the war in Syria.

Public debt stood at more than $86 billion, or higher than 150 percent of Gross Domestic Product, according to the finance ministry.

Moody's ratings agency on Tuesday downgraded Lebanon's sovereign debt, saying the anti-government protests had hit investor confidence and threatened macroeconomic stability.

Petrol stations owners said they would meet Thursday over persistent difficulties in paying for hydrocarbon imports due to dollar shortages.

A long list of grievances have spurred exasperated Lebanese to protest, but poor living conditions and corruption are near the top.

On Wednesday, the financial prosecutor asked former premier Fouad Siniora to appear next week over $11 billion allegedly spent between 2006 and 2008 when he was in office, the state-run National News Agency reported.

Siniora denied the accusations.

Last month, another prosecutor pressed charges against former prime minister Najib Mikati over allegations he wrongly received millions of dollars in subsidised housing loans, charges he denies.

Lebanon is ranked 138th out of 175 countries in Transparency International's 2018 corruption perceptions index, with key sectarian leaders accused of running demi-fiefdoms.

After meeting the World Bank on Wednesday, Aoun said no suspect would be exempt from investigations into corruption involving current and former officials.

He said 17 such cases have already been referred for investigation.

"The next government will include competent ministers, who are not suspected of corruption," Aoun said on Twitter, seemingly endorsing the demands of protesters.&nbsp;

'Women's rights not a footnote'

Banks opened again on Wednesday and classes resumed at many schools after a two-week gap, as demonstrators protested in various ways.

On Wednesday evening, thousands of women gathered in a central Beirut square near the seat of government, carrying candles as some banged on saucepans, an AFP correspondent said.

"O patriarchal powers, women's rights are not a footnote," they chanted.

On the Beirut waterfront, security forces and activists clashed after protesters tried to enter a private seaside resort, denouncing what they say is illegal privatisation of public property.

Earlier near the Palace of Justice, hundreds demanded an independent judiciary free from political interference, another AFP correspondent reported.&nbsp;

"We don't want judges who receive orders," read one protester's placard.

Across the country, hundreds of students skipped school, refusing to return to class until protest demands are met.

On pupil in Beirut asked Lebanese TV: "What will I do with a school-leaver's certificate if I don't have a country?"&nbsp;

Economist Nassib Ghobril said protesters' demands were aligned with those of international donors, especially in terms of the "fight against corruption" and achieving "good governance and financial rehabilitation".

"Today, there is an opportunity to see real change," he said.&nbsp;

The World Bank urged protest-hit Lebanon on Wednesday to form a new government quickly, warning that an economic downturn would deepen poverty and worsen unemployment.

The World Bank urged protest-hit Lebanon on Wednesday to form a new government quickly, warning that an economic downturn would deepen poverty and worsen unemployment. Students boycotted classes during the day and anti-government demonstrations continued into the evening. Since October 17, an unprecedented protest movement has targeted a political class deemed incompetent and corrupt. Demonstrations have continued despite the government's resignation last week. The outgoing cabinet is serving in a caretaker capacity as leaders haggle over the make-up of the next government -- a delay donors say the debt-saddled country can ill afford. The World Bank warned Wednesday that a "rapid government formation that meets the expectations of all Lebanese people is the most urgent step". Representatives from the Washington-based global lender met earlier with embattled President Michel Aoun, who has pledged various reforms to combat corruption following the protests. The World Bank had forecast a contraction of 0.2 percent before the turmoil, but said Wednesday that it now expected Lebanon's recession "to be even more significant". Without quick steps to address the crisis, about half of Lebanon's population could fall into poverty and unemployment could "rise sharply", the lender said in a statement. "With every passing day, the situation is becoming more acute," World Bank regional director Saroj Kumar Jha warned. Corruption Even before protests erupted last month, growth in Lebanon had stalled following repeated political deadlocks in recent years, compounded by the war in Syria. Public debt stood at more than $86 billion, or higher than 150 percent of Gross Domestic Product, according to the finance ministry. Moody's ratings agency on Tuesday downgraded Lebanon's sovereign debt, saying the anti-government protests had hit investor confidence and threatened macroeconomic stability. Petrol stations owners said they would meet Thursday over persistent difficulties in paying for hydrocarbon imports due to dollar shortages. A long list of grievances have spurred exasperated Lebanese to protest, but poor living conditions and corruption are near the top. On Wednesday, the financial prosecutor asked former premier Fouad Siniora to appear next week over $11 billion allegedly spent between 2006 and 2008 when he was in office, the state-run National News Agency reported. Siniora denied the accusations. Last month, another prosecutor pressed charges against former prime minister Najib Mikati over allegations he wrongly received millions of dollars in subsidised housing loans, charges he denies. Lebanon is ranked 138th out of 175 countries in Transparency International's 2018 corruption perceptions index, with key sectarian leaders accused of running demi-fiefdoms. After meeting the World Bank on Wednesday, Aoun said no suspect would be exempt from investigations into corruption involving current and former officials. He said 17 such cases have already been referred for investigation. "The next government will include competent ministers, who are not suspected of corruption," Aoun said on Twitter, seemingly endorsing the demands of protesters. 'Women's rights not a footnote' Banks opened again on Wednesday and classes resumed at many schools after a two-week gap, as demonstrators protested in various ways. On Wednesday evening, thousands of women gathered in a central Beirut square near the seat of government, carrying candles as some banged on saucepans, an AFP correspondent said. "O patriarchal powers, women's rights are not a footnote," they chanted. On the Beirut waterfront, security forces and activists clashed after protesters tried to enter a private seaside resort, denouncing what they say is illegal privatisation of public property. Earlier near the Palace of Justice, hundreds demanded an independent judiciary free from political interference, another AFP correspondent reported. "We don't want judges who receive orders," read one protester's placard. Across the country, hundreds of students skipped school, refusing to return to class until protest demands are met. On pupil in Beirut asked Lebanese TV: "What will I do with a school-leaver's certificate if I don't have a country?" Economist Nassib Ghobril said protesters' demands were aligned with those of international donors, especially in terms of the "fight against corruption" and achieving "good governance and financial rehabilitation". "Today, there is an opportunity to see real change," he said.

World Bank urges Lebanon to form government, warns of recession

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World Bank President David Malpass on Saturday appreciated the government's decision to slash corporate tax and said the move will help in the further growth of the economy.

"India has taken a good step with the recent cut in the corporate tax rate that will add to growth," Malpass said while addressing media after his meeting with Prime Minister Narendra Modi.

In September, Finance Minister Nirmala Sitharaman had announced a reduction in the country's effective corporate tax rate from around 35 per cent to 25 per cent. For companies that do not avail of any other incentive or commission, the effective tax rate would be just 22 per cent.

Malpass, who is on a visit to India, met Prime Minister Modi and discussed various topics including the financial sector, water, education, skilling and importance of data.

"I had an interesting meeting with Prime Minister Modi and discussed varied topics We talked about the financial sector, data...We talked about water, education, and skilling," he said.

Modi and Malpass also discussed various aspects of the financial sector. "We discussed ways that the financial sector can move forward and add to growth within India," he said.

Lauding the Indian economy's growth and progress, World Bank President said, "India's financial sector has made financial progress in terms of monitoring of assets, bankruptcy process. In terms of deepening of the banking system and looking for ways to the way forward. "

Malpass's visit to India comes in the backdrop of the recently released World Bank report on Ease of Doing Business 2020. As per the survey, India has remarkably improved in ease of doing business. The country is placed in the 63rd position among 190 countries.

According to the report issued by the World Bank on Thursday, India appeared among the top 10 improvers for the third time in a row. The Bank lauded New Delhi for a "remarkable reform effort".

"I should note India made progress and move up to 63 in the ranking and there was progress on registering the business on trading across borders, resolving insolvency, dealing with construction permits, registering property, trading across boards and paying taxes indicators," the World Bank president said.&nbsp;
</div>

World Bank President David Malpass on Saturday appreciated the government's decision to slash corporate tax and said the move will help in the further growth of the economy.

World Bank President David Malpass on Saturday appreciated the government's decision to slash corporate tax and said the move will help in the further growth of the economy. "India has taken a good step with the recent cut in the corporate tax rate that will add to growth," Malpass said while addressing media after his meeting with Prime Minister Narendra Modi. In September, Finance Minister Nirmala Sitharaman had announced a reduction in the country's effective corporate tax rate from around 35 per cent to 25 per cent. For companies that do not avail of any other incentive or commission, the effective tax rate would be just 22 per cent. Malpass, who is on a visit to India, met Prime Minister Modi and discussed various topics including the financial sector, water, education, skilling and importance of data. "I had an interesting meeting with Prime Minister Modi and discussed varied topics We talked about the financial sector, data...We talked about water, education, and skilling," he said. Modi and Malpass also discussed various aspects of the financial sector. "We discussed ways that the financial sector can move forward and add to growth within India," he said. Lauding the Indian economy's growth and progress, World Bank President said, "India's financial sector has made financial progress in terms of monitoring of assets, bankruptcy process. In terms of deepening of the banking system and looking for ways to the way forward. " Malpass's visit to India comes in the backdrop of the recently released World Bank report on Ease of Doing Business 2020. As per the survey, India has remarkably improved in ease of doing business. The country is placed in the 63rd position among 190 countries. According to the report issued by the World Bank on Thursday, India appeared among the top 10 improvers for the third time in a row. The Bank lauded New Delhi for a "remarkable reform effort". "I should note India made progress and move up to 63 in the ranking and there was progress on registering the business on trading across borders, resolving insolvency, dealing with construction permits, registering property, trading across boards and paying taxes indicators," the World Bank president said.

World Bank president praises India's decision to slash corporate tax

China and India made the top 10 list of governments that have done the most in the past year to improve the ease of doing business in their countries, the <a href="https://www.wionews.com/business-economy/world-bank-slashes-indias-growth-forecast-to-6-for-this-fiscal-year-255626">World Bank</a> said Wednesday.

Despite bitter trade war, in which the United States is demanding reforms from Beijing to protect intellectual property and open its economy further to American businesses, China made the top 10 list for the second year in a row.

With those improvements, China leapfrogged France to take the 31st spot in the "ease of doing business" ranking, moving up 15 places, &nbsp;according to the World Bank report.

And despite US complaints, the report credited China with improving protections for minority investors, strengthening procedures for enforcing contracts and making trade easier with changes to customs administration and port infrastructure.

"Removing barriers facing entrepreneurs generates better jobs, more tax revenues and higher incomes, all of which are necessary to reduce poverty and raise living standards," World Bank Group President David Malpass said in a statement.

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India landed on the most-improved list for the third year in a row, making it easier to start a business by abolishing filing fees, lowering the time and cost of seeking construction permits and making trade easier with port improvements and an improved electronic platform for submitting documents.

The country jumped 14 places to number 63 in the global rankings.

The other eight economies where business climates improved the most were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria, the study found.

New Zealand continues to top the global rankings, with Singapore, Hong Kong right behind, with Korea in fifth place, and the United States sixth.

The World Bank studies reforms in 10 areas of business activity in 190 economies, including issues like construction permits, getting electricity and paying taxes.

China and India made the top 10 list of governments that have done the most in the past year to improve the ease of doing business in their countries, the World Bank said Wednesday.

China and India made the top 10 list of governments that have done the most in the past year to improve the ease of doing business in their countries, the World Bank said Wednesday. Despite bitter trade war, in which the United States is demanding reforms from Beijing to protect intellectual property and open its economy further to American businesses, China made the top 10 list for the second year in a row. With those improvements, China leapfrogged France to take the 31st spot in the "ease of doing business" ranking, moving up 15 places, according to the World Bank report. And despite US complaints, the report credited China with improving protections for minority investors, strengthening procedures for enforcing contracts and making trade easier with changes to customs administration and port infrastructure. "Removing barriers facing entrepreneurs generates better jobs, more tax revenues and higher incomes, all of which are necessary to reduce poverty and raise living standards," World Bank Group President David Malpass said in a statement. × India landed on the most-improved list for the third year in a row, making it easier to start a business by abolishing filing fees, lowering the time and cost of seeking construction permits and making trade easier with port improvements and an improved electronic platform for submitting documents. The country jumped 14 places to number 63 in the global rankings. The other eight economies where business climates improved the most were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria, the study found. New Zealand continues to top the global rankings, with Singapore, Hong Kong right behind, with Korea in fifth place, and the United States sixth. The World Bank studies reforms in 10 areas of business activity in 190 economies, including issues like construction permits, getting electricity and paying taxes.

World Bank rates China, India as 'most improved' for doing business

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023.

The move ends a deadlock with the United States, which had opposed shareholding changes that would give a bigger voice to China and other large, fast-growing emerging markets in a review process that was due for completion this year.

IMF Managing Director Kristalina Georgieva announced the decision at the Fund's and World Bank's annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth.

US Treasury Secretary Steven Mnuchin, who holds an effective veto over major Fund decisions, endorsed the move, which calls for a doubling of the IMF's crisis lending fund to about $500 billion, restoring it to levels during the 2008-09 financial crisis. It would be accompanied by a reduction in bilateral lending arrangement to keep overall IMF resources unchanged.

But it would require the United States to double its commitment by contributing about $38 billion to the fund, known as the New Arrangements to Borrow (NAB), a move that would need approval from the US Congress.

"We continue to support efforts to maintain the IMF's current resources so that the IMF is sufficiently equipped to respond to potential crises over the medium term," Mnuchin said in a statement to the IMF's steering committee.

In April, Mnuchin said he was firmly opposed to increasing the IMF's overall funding and altering shareholding quotas.

"In our view, the IMF currently has ample resources to achieve its mission," he said at the time.

The New Arrangements to Borrow, first launched in 1998 and increased 10-fold during the financial crisis a decade later, were due to expire in 2022.

Bilateral lending arrangements, totalling about $440 billion, were due to expire at the end of 2019. These will be extended for a year to buy governments time to approve the changes.

But the deal puts off for four years a reckoning over how the growing influence in the global economy of China, Brazil and India will be reflected in the governance of the IMF.

The IMF's bylaws drafted at the end of World War Two require the Fund to be headquartered in the world's largest economy - which may require a shift in coming decades based on forecasts that China's GDP will eventually exceed that of the United States.

The deal preserves the US veto power at the IMF and ends a deadlock over quotas while avoiding a bigger share for China for the time being, said Mark Sobel, a former US Treasury official and US executive director at the IMF.

"This is second-best compared to a quota increase, but it merits support," added Sobel, who is now with the Official Monetary and Financial Institutions Forum think-tank.

It also may be an easier sell to Congress, which balked for years at the last quota increase agreed in 2010 that boosted China's and other emerging markets' voting power and shrunk that of European countries. Those changes were not implemented until 2016 after Congress approved it in a spending bill.

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023.

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023. The move ends a deadlock with the United States, which had opposed shareholding changes that would give a bigger voice to China and other large, fast-growing emerging markets in a review process that was due for completion this year. IMF Managing Director Kristalina Georgieva announced the decision at the Fund's and World Bank's annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth. US Treasury Secretary Steven Mnuchin, who holds an effective veto over major Fund decisions, endorsed the move, which calls for a doubling of the IMF's crisis lending fund to about $500 billion, restoring it to levels during the 2008-09 financial crisis. It would be accompanied by a reduction in bilateral lending arrangement to keep overall IMF resources unchanged. But it would require the United States to double its commitment by contributing about $38 billion to the fund, known as the New Arrangements to Borrow (NAB), a move that would need approval from the US Congress. "We continue to support efforts to maintain the IMF's current resources so that the IMF is sufficiently equipped to respond to potential crises over the medium term," Mnuchin said in a statement to the IMF's steering committee. In April, Mnuchin said he was firmly opposed to increasing the IMF's overall funding and altering shareholding quotas. "In our view, the IMF currently has ample resources to achieve its mission," he said at the time. The New Arrangements to Borrow, first launched in 1998 and increased 10-fold during the financial crisis a decade later, were due to expire in 2022. Bilateral lending arrangements, totalling about $440 billion, were due to expire at the end of 2019. These will be extended for a year to buy governments time to approve the changes. But the deal puts off for four years a reckoning over how the growing influence in the global economy of China, Brazil and India will be reflected in the governance of the IMF. The IMF's bylaws drafted at the end of World War Two require the Fund to be headquartered in the world's largest economy - which may require a shift in coming decades based on forecasts that China's GDP will eventually exceed that of the United States. The deal preserves the US veto power at the IMF and ends a deadlock over quotas while avoiding a bigger share for China for the time being, said Mark Sobel, a former US Treasury official and US executive director at the IMF. "This is second-best compared to a quota increase, but it merits support," added Sobel, who is now with the Official Monetary and Financial Institutions Forum think-tank. It also may be an easier sell to Congress, which balked for years at the last quota increase agreed in 2010 that boosted China's and other emerging markets' voting power and shrunk that of European countries. Those changes were not implemented until 2016 after Congress approved it in a spending bill.

IMF sidesteps clash with US over funding, delays shareholding changes to 2023

The World Bank on Sunday slashed its growth forecast for India's current fiscal year to 6%, down from 7.5%, warning that the "severe" slowdown could further weaken the country's stuttering financial sector.

In its last forecast in April, the bank had said that India's economic outlook was strong and expected growth of 7.5% during the current fiscal year that began in April.

But Asia's third-largest economy is currently growing at its slowest pace in six years, expanding by just 5% in the April-June quarter, hit by flagging consumer demand and a slackening in government spending.

India’s industrial output also shrank at its fastest rate in more than six years in August, data released last week showed, indicating that a slew of government measures had yet to underpin a recovery.

In an effort to kick-start the economy, India's central bank has cut interest rates five times this year, and underlined the challenge for policymakers by downgrading its growth forecast to 6.1% from 6.9% earlier this month.

Last week, ratings agency Moody’s Investors Service lowered its growth forecast for India to 5.8% for the current fiscal year from 6.2%, adding that a long period of weak growth will hamper the government’s fiscal consolidation plans.

The World Bank's latest forecast also underlined similar concerns linked to slowing growth and New Delhi’s decision to cut the corporate tax rate, which will cost about 1.5 trillion rupees in tax revenues.

"While the authorities have shown steadfast commitment to fiscal prudence, the significant growth deceleration as well as the corporate tax cuts undertaken to counter it come with heightened risks of fiscal slippage," the bank's report said.

The bank said it expects the economy to gradually recover, growing at 6.9% in the fiscal 20/21 starting next April.

The World Bank on Sunday slashed its growth forecast for India's current fiscal year to 6%, down from 7.5%, warning that the "severe" slowdown could further weaken the country's stuttering financial sector.

The World Bank on Sunday slashed its growth forecast for India's current fiscal year to 6%, down from 7.5%, warning that the "severe" slowdown could further weaken the country's stuttering financial sector. In its last forecast in April, the bank had said that India's economic outlook was strong and expected growth of 7.5% during the current fiscal year that began in April. But Asia's third-largest economy is currently growing at its slowest pace in six years, expanding by just 5% in the April-June quarter, hit by flagging consumer demand and a slackening in government spending. India’s industrial output also shrank at its fastest rate in more than six years in August, data released last week showed, indicating that a slew of government measures had yet to underpin a recovery. In an effort to kick-start the economy, India's central bank has cut interest rates five times this year, and underlined the challenge for policymakers by downgrading its growth forecast to 6.1% from 6.9% earlier this month. Last week, ratings agency Moody’s Investors Service lowered its growth forecast for India to 5.8% for the current fiscal year from 6.2%, adding that a long period of weak growth will hamper the government’s fiscal consolidation plans. The World Bank's latest forecast also underlined similar concerns linked to slowing growth and New Delhi’s decision to cut the corporate tax rate, which will cost about 1.5 trillion rupees in tax revenues. "While the authorities have shown steadfast commitment to fiscal prudence, the significant growth deceleration as well as the corporate tax cuts undertaken to counter it come with heightened risks of fiscal slippage," the bank's report said. The bank said it expects the economy to gradually recover, growing at 6.9% in the fiscal 20/21 starting next April.

World Bank slashes India's growth forecast to 6% for this fiscal year

International Monetary Fund's chief <a href="https://www.wionews.com/world/divided-european-union-taps-bulgarias-kristalina-georgieva-as-international-monetary-fund-candidate-240499">Kristalina Georgieva </a>on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that&nbsp;nearly 90 per cent of the world will witness slower growth in 2019.

"Two years ago, the global economy was in a synchronised upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronised slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Georgieva.

The speech comes ahead of next week's annual meeting of the IMF and World Bank during which both the organisation are set to present the global economic outlook.

Georgieva also&nbsp;said that the effect&nbsp;of the slowdown is more pronounced&nbsp;in some of the largest emerging market economies like India.

"In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, an&nbsp;especially the euro area, there is a softening of economic activity. In some of the <a href="https://www.wionews.com/opinions/can-india-realistically-become-us-5-trillion-economy-236846">largest emerging market economies, such as India</a> and Brazil, the slowdown is even more pronounced this year," Georgieva also said.

The IMF had cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions

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The IMF's research also takes into account the US-China trade conflict, which could have long-term repercussions.

&nbsp;"We have spoken in the past about the dangers of trade disputes. now, we see that they are actually taking a toll. Global trade growth has come to a near standstill. In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could soon be affected, " Georgieva said.

"Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital berlin wall' that forces countries to choose between technology systems," she added.

She highlighted that trade conflicts could lead to a loss of a whopping seven-hundred billion dollars from the global GDP output by 2020.

Speaking about the monetary policy, Georgieva said that central banks need to keep their interests low, especially due to low inflation and weak growth.

However, she also said that there was limited scope for further cuts because the borrowing were already nearly zero or negative.

Kristalina Georgieva took over as IMF's managing director on October 1 after Christine Lagarde resigned.

Georgieva is the former chief executive officer of World Bank.

International Monetary Fund's chief Kristalina Georgieva on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that nearly 90 per cent of the world will witness slower growth in 2019.

International Monetary Fund's chief Kristalina Georgieva on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that nearly 90 per cent of the world will witness slower growth in 2019. "Two years ago, the global economy was in a synchronised upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronised slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Georgieva. The speech comes ahead of next week's annual meeting of the IMF and World Bank during which both the organisation are set to present the global economic outlook. Georgieva also said that the effect of the slowdown is more pronounced in some of the largest emerging market economies like India. "In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, an especially the euro area, there is a softening of economic activity. In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year," Georgieva also said. The IMF had cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions × The IMF's research also takes into account the US-China trade conflict, which could have long-term repercussions. "We have spoken in the past about the dangers of trade disputes. now, we see that they are actually taking a toll. Global trade growth has come to a near standstill. In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could soon be affected, " Georgieva said. "Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital berlin wall' that forces countries to choose between technology systems," she added. She highlighted that trade conflicts could lead to a loss of a whopping seven-hundred billion dollars from the global GDP output by 2020. Speaking about the monetary policy, Georgieva said that central banks need to keep their interests low, especially due to low inflation and weak growth. However, she also said that there was limited scope for further cuts because the borrowing were already nearly zero or negative. Kristalina Georgieva took over as IMF's managing director on October 1 after Christine Lagarde resigned. Georgieva is the former chief executive officer of World Bank.

World suffering 'synchronised slowdown', says new IMF chief; effect 'more pronounced' in India

A former World Bank economist, an ophthalmologist, a spy chief and a one-time warlord are among the 15 candidates vying for the presidency when <a href="https://www.wionews.com/south-asia/afghanistan-commits-to-holding-presidential-polls-on-time-248549">Afghanistan</a> heads to the <a href="https://www.wionews.com/south-asia/fraud-the-main-enemy-for-afghan-election-officials-250714">polls</a> this weekend.

Eighteen candidates are set to appear on the official ballot, although three have since dropped out and officials say there is not enough time to update the ballot papers.

The run-up to the poll has been chaotic, with little in the way of campaigning and large swathes of the country unable to vote due to Taliban threats.

Here is a rundown of the main candidates:

The incumbent

President Ashraf Ghani has variously been described as visionary, short-tempered, academic and overly demanding.

The former World Bank economist and finance minister have long nurtured dreams of rebuilding Afghanistan, and firmly believes he is one of the few people, perhaps the only one, capable of handling the responsibility.

Despite a lack of credible polling, he is widely perceived as the overall favourite, though he has made little headway against either the Taliban or deep-rooted government corruption.

And even though Ghani has made repeated overtures to the Taliban for peace, they continue to dismiss him as a US-controlled "puppet", while the Americans sidelined him from now-suspended talks with the militants.

If re-elected, Ghani will be given a mandate in any future Afghan-led peace process with the Taliban&nbsp;should they ever agree to such negotiations.

If talking fails, Ghani has vowed in the past to fight the militants "for generations" if necessary.

The doctor

Former ophthalmologist and resistance fighter Abdullah Abdullah is again on the cusp of becoming the president of Afghanistan after being defeated in two previous elections, both tarnished by widespread allegations of fraud.

Abdullah, once an eye doctor in Kabul, was a member of Burhanuddin Rabbani's government during Afghanistan's 1992-1996 civil war, and made a name for himself abroad for his fluent English and refined manner.

His formative political experience was as the right-hand man to Ahmad Shah Massoud, the celebrated Tajik commander who led resistance to the Soviet occupation in the 1980s and to the 1996-2001 Taliban regime, only to be assassinated by Al Qaeda two days before the 9/11 attacks.

Both Abdullah and Ghani ran in 2014, and both claimed they had won.

To avert a full-blown conflict, then US secretary of state John Kerry brokered a power-sharing deal between the two that left Abdullah as the country's chief executive.

Abdullah has been in an unending tug of war with Ghani ever since, with bitter infighting in their administration preventing major attempts at reforms and legislation, while the two avoid public appearances together due to deep-seated enmity.

If finally elected, Abdullah has pledged to prioritise peace along with vague promises to improve the economy.

The butcher of Kabul

Gulbuddin Hekmatyar has lived many lives in a career forged in the crucible of Afghanistan's decades of war. Widely regarded as one of the most notorious warlords in Afghanistan's bloody history, he has also been an anti-Soviet commander, prime minister, and now a presidential contender.

He was accused of killing thousands during the 1992-1996 civil war and earned the nickname "the butcher of Kabul" for his brutal shelling of the capital.

After the 2001 US-led invasion, Washington designated him a terrorist, accusing him of colluding with Al-Qaeda and Taliban militants.

Hekmatyar made a surprising re-entry into the political mainstream in 2017 following a peace deal between his dormant Hezb-i-Islami militant group and Ghani.

If elected, Hekmatyar has vowed to oversee the withdrawal of all foreign troops from Afghanistan once and for all.

The lion's brother

Ahmad Wali Massoud is hoping to cash in on the fame of his renowned elder brother Ahmad Shah Massoud, the so-called "Lion of Panjshir" who worked so closely with Abdullah.

Other than a stint as the Afghan ambassador to the United Kingdom, Massoud has little in the way of political experience and has largely spent the last two decades as his brother's keeper, running a foundation in his name.

But he remains popular with the country's Tajik ethnic group, especially powerbrokers from his native Panjshir province that has enjoyed an outsized role in the government since 2001. &nbsp;

Massoud, however, is believed to have little chance of winning and at best can hope for an appointment in any future government.

Hopefuls

The 12 other candidates encompass a wide range of personalities, including former communists and a spy chief. &nbsp;

Rahmatullah Nabil is hoping his security credentials will woo voters after twice serving as the head of the Afghan intelligence agency.

And former communist party member Nur ul-Haq Ulumi -- who also briefly served as an interior minister in 2015 -- is in the race but stands little chance of making waves.

A former World Bank economist, an ophthalmologist, a spy chief and a one-time warlord are among the 15 candidates vying for the presidency when Afghanistan heads to the polls this weekend.

A former World Bank economist, an ophthalmologist, a spy chief and a one-time warlord are among the 15 candidates vying for the presidency when Afghanistan heads to the polls this weekend. Eighteen candidates are set to appear on the official ballot, although three have since dropped out and officials say there is not enough time to update the ballot papers. The run-up to the poll has been chaotic, with little in the way of campaigning and large swathes of the country unable to vote due to Taliban threats. Here is a rundown of the main candidates: The incumbent President Ashraf Ghani has variously been described as visionary, short-tempered, academic and overly demanding. The former World Bank economist and finance minister have long nurtured dreams of rebuilding Afghanistan, and firmly believes he is one of the few people, perhaps the only one, capable of handling the responsibility. Despite a lack of credible polling, he is widely perceived as the overall favourite, though he has made little headway against either the Taliban or deep-rooted government corruption. And even though Ghani has made repeated overtures to the Taliban for peace, they continue to dismiss him as a US-controlled "puppet", while the Americans sidelined him from now-suspended talks with the militants. If re-elected, Ghani will be given a mandate in any future Afghan-led peace process with the Taliban should they ever agree to such negotiations. If talking fails, Ghani has vowed in the past to fight the militants "for generations" if necessary. The doctor Former ophthalmologist and resistance fighter Abdullah Abdullah is again on the cusp of becoming the president of Afghanistan after being defeated in two previous elections, both tarnished by widespread allegations of fraud. Abdullah, once an eye doctor in Kabul, was a member of Burhanuddin Rabbani's government during Afghanistan's 1992-1996 civil war, and made a name for himself abroad for his fluent English and refined manner. His formative political experience was as the right-hand man to Ahmad Shah Massoud, the celebrated Tajik commander who led resistance to the Soviet occupation in the 1980s and to the 1996-2001 Taliban regime, only to be assassinated by Al Qaeda two days before the 9/11 attacks. Both Abdullah and Ghani ran in 2014, and both claimed they had won. To avert a full-blown conflict, then US secretary of state John Kerry brokered a power-sharing deal between the two that left Abdullah as the country's chief executive. Abdullah has been in an unending tug of war with Ghani ever since, with bitter infighting in their administration preventing major attempts at reforms and legislation, while the two avoid public appearances together due to deep-seated enmity. If finally elected, Abdullah has pledged to prioritise peace along with vague promises to improve the economy. The butcher of Kabul Gulbuddin Hekmatyar has lived many lives in a career forged in the crucible of Afghanistan's decades of war. Widely regarded as one of the most notorious warlords in Afghanistan's bloody history, he has also been an anti-Soviet commander, prime minister, and now a presidential contender. He was accused of killing thousands during the 1992-1996 civil war and earned the nickname "the butcher of Kabul" for his brutal shelling of the capital. After the 2001 US-led invasion, Washington designated him a terrorist, accusing him of colluding with Al-Qaeda and Taliban militants. Hekmatyar made a surprising re-entry into the political mainstream in 2017 following a peace deal between his dormant Hezb-i-Islami militant group and Ghani. If elected, Hekmatyar has vowed to oversee the withdrawal of all foreign troops from Afghanistan once and for all. The lion's brother Ahmad Wali Massoud is hoping to cash in on the fame of his renowned elder brother Ahmad Shah Massoud, the so-called "Lion of Panjshir" who worked so closely with Abdullah. Other than a stint as the Afghan ambassador to the United Kingdom, Massoud has little in the way of political experience and has largely spent the last two decades as his brother's keeper, running a foundation in his name. But he remains popular with the country's Tajik ethnic group, especially powerbrokers from his native Panjshir province that has enjoyed an outsized role in the government since 2001. Massoud, however, is believed to have little chance of winning and at best can hope for an appointment in any future government. Hopefuls The 12 other candidates encompass a wide range of personalities, including former communists and a spy chief. Rahmatullah Nabil is hoping his security credentials will woo voters after twice serving as the head of the Afghan intelligence agency. And former communist party member Nur ul-Haq Ulumi -- who also briefly served as an interior minister in 2015 -- is in the race but stands little chance of making waves.

The economist and the eye doctor: The Afghan presidential hopefuls

Nobel prize-winning economist Joseph Stiglitz said the global economy is entering a severe slowdown, but told AFP in an interview he did not see it hurtling towards crisis.

"I would say that I don't see a crisis," said the US economist in Paris where he was promoting the French version of his latest book: People, Power, and Profits: Progressive Capitalism for an Age of Discontent.

"What I see is a significant slowdown," he said. "In the process of this significant slowdown, there will be bankruptcies."

He said that slowdown deprived corporate managers of a cushion to soften the consequences of their errors.

"When you are slowing down and you mismanage, you go bankrupt."

This made people nervous, "but the particular situation for a global crisis requires much more disruption than that", he said.&nbsp;

Stiglitz said some developing countries like Argentina might be swept into dire straits "but I don't think it is likely that Europe and America will."&nbsp;

The 2001 winner of the Nobel Memorial Prize in Economic Sciences said he was concerned about rate cuts by US and eurozone central banks and a revival of liquidity injections into the economy.

"I think the benefit that they get out of this is very little," he said. "They are clearly losing ammunition in case the situation gets worse."

'A problem called Trump'

Stiglitz said the three main economies <a href="https://www.wionews.com/world/chinese-foreign-minister-calls-for-international-efforts-to-solve-iran-nuclear-issue-252120">China</a>, the eurozone and the United States were all having problems.

"China has been having a hard time going from a manufactured export-led growth to a more domestically driven growth," he said.

Germany is under pressure to stimulate its own economy as well as its eurozone partners, while the US "has a problem called <a href="https://www.wionews.com/world/us-house-to-launch-trump-impeachment-inquiry-over-ukraine-controversy-251842">Trump</a>", said Stiglitz.&nbsp;

"It's not just a trade war. He has introduced a new degree of political uncertainty, a new level of chaos" that has reduced growth.

"Those three together mean slow economic growth," said Stiglitz. "The trade war just makes it all worse."

In his book, Stiglitz argues for "progressive capitalism" where the state would again wield more power over the economy, including regulating markets.

He recommended the breakup of internet giants.

"There was no reason that Facebook should have been allowed to acquire Instagram and WhatsApp," said Stiglitz.

The economist welcomed the French government's move to tax the revenue of Facebook, Apple, Amazon, and Google who have been declaring global profits in targeted low-tax jurisdictions.

The French initiative had forced "a global conversation about the taxation of the digital companies", he said.

"And it helps the people realize that there is something fundamentally wrong when the richest corporations in the world are not paying taxes".

Stiglitz was chief economist at the World Bank for three years after serving as the head of US President Bill Clinton's Council of Economic Advisors.

Nobel prize-winning economist Joseph Stiglitz said the global economy is entering a severe slowdown, but told AFP in an interview he did not see it hurtling towards crisis.

Nobel prize-winning economist Joseph Stiglitz said the global economy is entering a severe slowdown, but told AFP in an interview he did not see it hurtling towards crisis. "I would say that I don't see a crisis," said the US economist in Paris where he was promoting the French version of his latest book: People, Power, and Profits: Progressive Capitalism for an Age of Discontent. "What I see is a significant slowdown," he said. "In the process of this significant slowdown, there will be bankruptcies." He said that slowdown deprived corporate managers of a cushion to soften the consequences of their errors. "When you are slowing down and you mismanage, you go bankrupt." This made people nervous, "but the particular situation for a global crisis requires much more disruption than that", he said. Stiglitz said some developing countries like Argentina might be swept into dire straits "but I don't think it is likely that Europe and America will." The 2001 winner of the Nobel Memorial Prize in Economic Sciences said he was concerned about rate cuts by US and eurozone central banks and a revival of liquidity injections into the economy. "I think the benefit that they get out of this is very little," he said. "They are clearly losing ammunition in case the situation gets worse." 'A problem called Trump' Stiglitz said the three main economies China, the eurozone and the United States were all having problems. "China has been having a hard time going from a manufactured export-led growth to a more domestically driven growth," he said. Germany is under pressure to stimulate its own economy as well as its eurozone partners, while the US "has a problem called Trump", said Stiglitz. "It's not just a trade war. He has introduced a new degree of political uncertainty, a new level of chaos" that has reduced growth. "Those three together mean slow economic growth," said Stiglitz. "The trade war just makes it all worse." In his book, Stiglitz argues for "progressive capitalism" where the state would again wield more power over the economy, including regulating markets. He recommended the breakup of internet giants. "There was no reason that Facebook should have been allowed to acquire Instagram and WhatsApp," said Stiglitz. The economist welcomed the French government's move to tax the revenue of Facebook, Apple, Amazon, and Google who have been declaring global profits in targeted low-tax jurisdictions. The French initiative had forced "a global conversation about the taxation of the digital companies", he said. "And it helps the people realize that there is something fundamentally wrong when the richest corporations in the world are not paying taxes". Stiglitz was chief economist at the World Bank for three years after serving as the head of US President Bill Clinton's Council of Economic Advisors.

Top economist Stiglitz sees 'significant slowdown', not crisis

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">International Monetary Fund</a>, which would make her the first person from an emerging economy to head the global lender.

A centre-right politician who grew up in Bulgaria under communism, Georgieva has built a reputation during her time at the&nbsp;World&nbsp;Bank&nbsp;- where she has been on a leave of absence from her post as the Chief Executive Officer during the IMF nomination process - and the European Commission as a tenacious straight-shooter, champion of gender equality and leader in the global fight against climate change.

She will face a host of challenges as the head of the IMF, the&nbsp;world's crisis lender with $1 Trillion in firepower, including a global economic slowdown triggered by escalating trade tensions between the United States and China.

In addition, the United States, which represents the largest voting bloc on the IMF board, has withdrawn from multilateral accords, and risks are growing in emerging markets like Argentina, which last year received a $57 billion bailout, the IMF's largest ever.

The IMF's executive board interviewed Georgieva, 65, the sole nominee for the job, on Tuesday, and is due to vote on her nomination on Wednesday.

The vote is largely ceremonial. Georgieva, backed by the French President Emmanuel Macron, last month won support from the rest of the European Union, as well as tacit backing from the United States.

An IMF board source told Reuters that Georgieva was ready for the job. "She has convinced the board that she is the leader that the institution needs and will be a strong advocate for the multilateral system," the source said, speaking on the condition of anonymity because the board’s deliberations are not public.

Her likely confirmation has spawned great pride in her home country, with some newspapers lauding it as evidence of both Georgieva's own qualities and as a diplomatic success.

"Only 20 years ago, Bulgaria was among the countries with an IMF rescue programme," the leading financial newspaper Kapital said earlier this month. "The nomination of the former Bulgarian EU commissioner should be seen not only as her personal acknowledgement&nbsp;but as a diplomatic success for the country."&nbsp;

Georgieva will replace Christine Lagarde, who became the first woman to head the <a href="https://www.wionews.com/south-east-asia/international-monetary-fund-to-consider-three-year-extended-fund-facility-of-6-billion-for-pakistan-231072">IMF</a> when she took the helm in 2011. Lagarde, 63, guided the lender through the European sovereign debt crisis, which began about a month after she took office. She is departing to head the European Central&nbsp;Bank.

Before her appointment at the&nbsp;<a href="https://www.wionews.com/world/international-monetary-fund-downgrades-world-growth-warns-of-precarious-2020-238104">World&nbsp;Bank</a>, Georgieva held numerous senior European Commission posts, including the budget commissioner, and has deep knowledge of emerging market countries served by the&nbsp;World&nbsp;Bank.

Scott Morris, a senior fellow at the Center for Global Development, said Georgieva quickly made an impact after assuming the No. 2 role at the&nbsp;World&nbsp;Bank&nbsp;in early 2017. She pushed for consensus on a $13 billion capital increase and reform package agreed last year. Under the reforms, lending to China and other wealthier developing countries will decrease with more resources going to needier countries.

"She was able to bring together a diverse group of shareholders. That's her strength," said Morris, a former US&nbsp;Treasury official. "What's less clear is how she will handle the day to day business of the fund, that business being the crisis moments. It's harder to see how she will respond in a crisis."

Morris said Lagarde was successful in that she was not viewed as representing European interests, which helped her navigate the Greek debt crisis. Georgieva will have to take a similar multilateral approach, keeping her focus on the interests of the institution and individual countries.

"No one thought of Lagarde as a European&nbsp;chief&nbsp;executive," Morris said. "She rose above that."

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the International Monetary Fund, which would make her the first person from an emerging economy to head the global lender.

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the International Monetary Fund, which would make her the first person from an emerging economy to head the global lender. A centre-right politician who grew up in Bulgaria under communism, Georgieva has built a reputation during her time at the World Bank - where she has been on a leave of absence from her post as the Chief Executive Officer during the IMF nomination process - and the European Commission as a tenacious straight-shooter, champion of gender equality and leader in the global fight against climate change. She will face a host of challenges as the head of the IMF, the world's crisis lender with $1 Trillion in firepower, including a global economic slowdown triggered by escalating trade tensions between the United States and China. In addition, the United States, which represents the largest voting bloc on the IMF board, has withdrawn from multilateral accords, and risks are growing in emerging markets like Argentina, which last year received a $57 billion bailout, the IMF's largest ever. The IMF's executive board interviewed Georgieva, 65, the sole nominee for the job, on Tuesday, and is due to vote on her nomination on Wednesday. The vote is largely ceremonial. Georgieva, backed by the French President Emmanuel Macron, last month won support from the rest of the European Union, as well as tacit backing from the United States. An IMF board source told Reuters that Georgieva was ready for the job. "She has convinced the board that she is the leader that the institution needs and will be a strong advocate for the multilateral system," the source said, speaking on the condition of anonymity because the board’s deliberations are not public. Her likely confirmation has spawned great pride in her home country, with some newspapers lauding it as evidence of both Georgieva's own qualities and as a diplomatic success. "Only 20 years ago, Bulgaria was among the countries with an IMF rescue programme," the leading financial newspaper Kapital said earlier this month. "The nomination of the former Bulgarian EU commissioner should be seen not only as her personal acknowledgement but as a diplomatic success for the country." Georgieva will replace Christine Lagarde, who became the first woman to head the IMF when she took the helm in 2011. Lagarde, 63, guided the lender through the European sovereign debt crisis, which began about a month after she took office. She is departing to head the European Central Bank. Before her appointment at the World Bank, Georgieva held numerous senior European Commission posts, including the budget commissioner, and has deep knowledge of emerging market countries served by the World Bank. Scott Morris, a senior fellow at the Center for Global Development, said Georgieva quickly made an impact after assuming the No. 2 role at the World Bank in early 2017. She pushed for consensus on a $13 billion capital increase and reform package agreed last year. Under the reforms, lending to China and other wealthier developing countries will decrease with more resources going to needier countries. "She was able to bring together a diverse group of shareholders. That's her strength," said Morris, a former US Treasury official. "What's less clear is how she will handle the day to day business of the fund, that business being the crisis moments. It's harder to see how she will respond in a crisis." Morris said Lagarde was successful in that she was not viewed as representing European interests, which helped her navigate the Greek debt crisis. Georgieva will have to take a similar multilateral approach, keeping her focus on the interests of the institution and individual countries. "No one thought of Lagarde as a European chief executive," Morris said. "She rose above that."

World Bank's Georgieva to be first International Monetary Fund chief from emerging economy

The work done under Prime Minister Narendra Modi`s flagship healthcare scheme Ayushman Bharat in the past one year has received commendation from the United Nations (UN), World Health Organisation (WHO) and the World bank alike, Union Health Minister Harsh Vardhan said on Monday.

Speaking to ANI on the completion of the first year of Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), he said, "This biggest health insurance scheme has brought smiles on the faces of lakhs of people in the country. People are thanking Prime Minister Narendra Modi ji for this blessing. I am glad to inform that Ayushman Bharat scheme has been appreciated by the United Nations, World Health Organisation and World Bank."

Vardhan noted that more than 47 lakh people have received benefits worth Rs 7,500 crores in the past 12 months, and approximately 60 per cent of this amount has been spent on tertiary-care.

"Over 10 crore e-cards have been generated and about 18,000 hospitals have been empanelled under AB-PMJAY. Out of the total hospitals empanelled, 53 per cent are private, especially multi-speciality. There are 9 hospital admissions every minute across India," said the Health minister.

As of today, the scheme has been implemented in 32 States and Union Territories.

A unique feature of AB-PMJAY is its portability, which has helped atleast 42,631 eligible poor and migrant workers to seek treatment outside their states, said the health minister.

AB-PMJAY is the flagship scheme of Government of India that provides a cover of up to Rs 5 lakhs per family per year, for secondary and tertiary care hospitalization to over 10.74 crore vulnerable entitled families (approximately 50 crore beneficiaries).

Last year on 23 September, Prime Minister Narendra Modi had launched PM-JAY from Ranchi, Jharkhand.&nbsp;

The work done under Prime Minister Narendra Modi`s flagship healthcare scheme Ayushman Bharat in the past one year has received commendation from the United Nations (UN), World Health Organisation (WHO) and the World bank alike, Union Health Minister Harsh Vardhan said on Monday.

The work done under Prime Minister Narendra Modi`s flagship healthcare scheme Ayushman Bharat in the past one year has received commendation from the United Nations (UN), World Health Organisation (WHO) and the World bank alike, Union Health Minister Harsh Vardhan said on Monday. Speaking to ANI on the completion of the first year of Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), he said, "This biggest health insurance scheme has brought smiles on the faces of lakhs of people in the country. People are thanking Prime Minister Narendra Modi ji for this blessing. I am glad to inform that Ayushman Bharat scheme has been appreciated by the United Nations, World Health Organisation and World Bank." Vardhan noted that more than 47 lakh people have received benefits worth Rs 7,500 crores in the past 12 months, and approximately 60 per cent of this amount has been spent on tertiary-care. "Over 10 crore e-cards have been generated and about 18,000 hospitals have been empanelled under AB-PMJAY. Out of the total hospitals empanelled, 53 per cent are private, especially multi-speciality. There are 9 hospital admissions every minute across India," said the Health minister. As of today, the scheme has been implemented in 32 States and Union Territories. A unique feature of AB-PMJAY is its portability, which has helped atleast 42,631 eligible poor and migrant workers to seek treatment outside their states, said the health minister. AB-PMJAY is the flagship scheme of Government of India that provides a cover of up to Rs 5 lakhs per family per year, for secondary and tertiary care hospitalization to over 10.74 crore vulnerable entitled families (approximately 50 crore beneficiaries). Last year on 23 September, Prime Minister Narendra Modi had launched PM-JAY from Ranchi, Jharkhand.

Work done under Ayushman Bharat scheme commended by UN, WHO, World Bank: Harsh Vardhan

People Around The World Are More Likely To Have A Mobile Than Basic Sanitation Services

Gravitas: World Bank: More Smartphones than toilets in the world

The World Bank said Thursday it is again reviewing a loan to China to provide vocational education to the <a href="https://www.wionews.com/world/human-rights-watch-report-on-uighurs-full-of-prejudice-says-china-164872">Muslim Uighur minority</a>, but has "no indication" the funds were used for anything other than schooling.

<a href="https://www.wionews.com/world/ambassadors-of-50-countries-write-to-un-rights-council-backing-chinas-actions-on-uighurs-in-xinjiang-238932">China's treatment of the Uighurs</a> -- a mostly Muslim, Turkic-speaking minority concentrated in the country's tightly-controlled northwestern Xinjiang region -- has come under growing scrutiny.

Foreign Policy magazine reported Wednesday that a school that benefited from a tranche of the $50 million World Bank loan to China bought "barbed wire, gas launchers, and body armor."&nbsp;

The magazine added however that it was not clear if the $30,000 bill for the items and other security equipment came from the loan or some other source.

But the bank said its previous twice-yearly reviews have not shown any evidence of that.

"There is no indication from these missions that World Bank resources made available to the schools were used for any other purposes than those agreed to under the project," the bank said in a statement.&nbsp;

"Nevertheless, based on recent claims, we are conducting an additional review led by a diverse team of experts... If action is warranted, we will take it."

Earlier this month the US Congressional-Executive Commission on China sent a letter to World Bank President David Malpass expressing concern and raising questions about how the funds were used.

"A growing body of convincing and credible evidence indicates mass internment camps are centers for social control and political indoctrination," said the letter signed by US Representative James McGovern of Massachusetts and Florida Senator Marco Rubio.

"In these camps, Chinese authorities mistreat and torture detainees while requiring them to engage in forced labor, and to renounce their religion and culture," adding that the actions "may constitute crimes against humanity."

The loan was approved in 2015 for vocational schools to help improve the lives of ethnic minorities. The congressional letter said the funding was approved "before the advent of widespread mass internment camps."

Rights groups and experts say more than one million mostly Muslim ethnic minorities have been interned in re-education camps in Xinjiang.

China initially denied the existence of the camps before admitting to running what it called "vocational education centers," which it presented as necessary to combat religious extremism and boost employment.&nbsp;

Last month, Beijing said "most" of those being held had now returned home, without providing details.

The World Bank said Thursday it is again reviewing a loan to China to provide vocational education to the Muslim Uighur minority, but has "no indication" the funds were used for anything other than schooling.

The World Bank said Thursday it is again reviewing a loan to China to provide vocational education to the Muslim Uighur minority, but has "no indication" the funds were used for anything other than schooling. China's treatment of the Uighurs -- a mostly Muslim, Turkic-speaking minority concentrated in the country's tightly-controlled northwestern Xinjiang region -- has come under growing scrutiny. Foreign Policy magazine reported Wednesday that a school that benefited from a tranche of the $50 million World Bank loan to China bought "barbed wire, gas launchers, and body armor." The magazine added however that it was not clear if the $30,000 bill for the items and other security equipment came from the loan or some other source. But the bank said its previous twice-yearly reviews have not shown any evidence of that. "There is no indication from these missions that World Bank resources made available to the schools were used for any other purposes than those agreed to under the project," the bank said in a statement. "Nevertheless, based on recent claims, we are conducting an additional review led by a diverse team of experts... If action is warranted, we will take it." Earlier this month the US Congressional-Executive Commission on China sent a letter to World Bank President David Malpass expressing concern and raising questions about how the funds were used. "A growing body of convincing and credible evidence indicates mass internment camps are centers for social control and political indoctrination," said the letter signed by US Representative James McGovern of Massachusetts and Florida Senator Marco Rubio. "In these camps, Chinese authorities mistreat and torture detainees while requiring them to engage in forced labor, and to renounce their religion and culture," adding that the actions "may constitute crimes against humanity." The loan was approved in 2015 for vocational schools to help improve the lives of ethnic minorities. The congressional letter said the funding was approved "before the advent of widespread mass internment camps." Rights groups and experts say more than one million mostly Muslim ethnic minorities have been interned in re-education camps in Xinjiang. China initially denied the existence of the camps before admitting to running what it called "vocational education centers," which it presented as necessary to combat religious extremism and boost employment. Last month, Beijing said "most" of those being held had now returned home, without providing details.

World Bank says 'no indication' China misused loan for Uighur schools

Sudan needs $8 billion (£6.5 billion) in foreign aid over the next two years to cover its import bill and help rebuild its ravaged economy after months of political turmoil, its new prime minister said on Saturday.

Sudan needs $8 billion (£6.5 billion) in foreign aid over the next two years to cover its import bill and help rebuild its ravaged economy after months of political turmoil, its new prime minister said on Saturday. Abdalla Hamdok, sworn in three days earlier to head a transitional government after the ousting of veteran leader Omar al-Bashir, said up to another $2 billion of foreign reserves deposits were needed in the next three months to halt a fall in the currency. The 61-year-old economist, who has worked for the UN Economic Commission for Africa, said he had started talks with the IMF and the World Bank to discuss restructuring Sudan's crippling debt and had approached friendly nations and funding bodies about the aid. Mounting public anger over shortages of food, fuel, and hard currency triggered mass demonstrations that eventually forced Bashir from power in April. "We are in communication to achieve this," Hamdok said in his first interview with a foreign media outlet. "The foreign reserves in the central bank are weak and very low." "However," he said, "there won't be a forced prescription from the IMF or the World Bank on Sudan." On the politically tricky topic of government subsidies for bread, fuel, electricity, and medicine, Hamdok said any changes would only be made after "deep discussions" with the people. "The people are the ones who will make the decision on this issue," he said. He also said he had been talking with the United States to remove Sudan from its list of state sponsors of terrorism - a designation that has left Khartoum isolated from most of the international financial system since 1993. There was no immediate comment from the US government, the IMF or the World Bank. DEVALUED CURRENCY Sudan has been in economic turmoil since it lost the bulk of its oil production in 2011 when South Sudan seceded after decades of civil war. It has devalued the pound several times but not been able to halt the fall. One dollar currently fetches 65 pounds on the black market versus the official rate of 45. "We will work to unify the exchange rate, and to manage the exchange rate using a flexible managed exchange rate," Hamdok said, without going into details. He said Sudan needed to restore trust in the banking system. Hamdok, who studied agricultural economics, has also worked at the African Development Bank and most recently as a special advisor at the Trade and Development Bank in Ethiopia. He said Sudan needed to tap its agricultural potential. Sudan is rich in agricultural resources but high taxes, corruption, and mismanagement have held back investment in the sector for decades. "We want to take the Sudanese economy from an economy based on consumption and imports to a productive economy, and stop exporting products such as livestock and agriculture as raw materials," Hamdok said. "Instead, we will aim to process them so as to create added value." He also said he wants to focus on peace-building in a nation that has seen conflicts flare in multiple parts of the country, and endured a civil war that ended in the succession of the South. "Stopping war, which represents 70 per cent of the expenditure in the budget, will create a surplus that can be invested in production and particularly agriculture, livestock, and related industries," he said. Shortly after Bashir was ousted, the United Arab Emirates and Saudi Arabia pledged $3 billion in aid to Sudan, in the form of a $500 million deposit in the central bank, which Sudan has already received, as well as fuel, wheat, and medicine. The generals who forced Bashir from power took over and then, after months of wrangling and further violent protests, agreed to set up a transitional body including civilians to pave the way to elections in three years. Many hope Hamdok can shepherd Sudan through the transitional period, but some opposition members and analysts worry that the power-sharing deal may fall short of expectations in a country where the military, backed by Islamists, has dominated for decades.

Sudan needs up to $10 billion in aid to rebuild the economy: PM Abdalla Hamdok

Punjab Chief Minister Captain Amarinder Singh on Thursday announced that his government would canalise all the rivers of the state, taking technical support from the World Bank (WB) and the Asian Development Bank (ADB).

According to a press release issued from the Chief Minister's Office (CMO), Singh also announced dedicated village-relief teams in flood-affected areas in Sultanpur Lodhi and Jalandhar.

The Chief Minister also announced that each team will comprise officers of Health, Civil Supply, and Animal Husbandry Departments and they would ensure timely supply of food, medicines, and fodder for affected families.

Earlier today, Singh did an aerial survey of Nawanshahr, Ludhiana, Phillaur, Shahkot, and Lohian in the state.

In a tweet, he said, "A total of 30,000 people are impacted and crop damage reported in 108 villages. There are 14 breaches in Satluj. Considering the seriousness of the breaches, the Army's help has been sought."

In another tweet, Singh said,&nbsp;"Visited affected areas of Jalandhar and Kapurthala. Had a detailed meeting with DCs and Army officials and reviewed the rescue measures."

"Interacted with people and ensured supplies of food, water, and medicines on priority. Compensation for flood damages to be given once the water recedes," he added.

In the wake of flood situation in the state, the Punjab Chief Minister earlier today wrote to Prime Minister Narendra Modi seeking Rs 1,000 crore special relief package to compensate the losses.

The Chief Minister has also urged the Prime Minister to instruct the concerned authorities to waive off crop loans of banks or financial institutions availed by the affected farmers in the affected villages during the current cropping season.

The flooding in river Sutlej due to the discharge of water from Bhakra Dam, the heaviest since 1958, had caused extensive damage to the standing crops and inundation of residential areas in the villages, the Chief Minister said.&nbsp;

 
&nbsp;

Punjab Chief Minister Captain Amarinder Singh on Thursday announced that his government would canalise all the rivers of the state, taking technical support from the World Bank (WB) and the Asian Development Bank (ADB).

Punjab Chief Minister Captain Amarinder Singh on Thursday announced that his government would canalise all the rivers of the state, taking technical support from the World Bank (WB) and the Asian Development Bank (ADB). According to a press release issued from the Chief Minister's Office (CMO), Singh also announced dedicated village-relief teams in flood-affected areas in Sultanpur Lodhi and Jalandhar. The Chief Minister also announced that each team will comprise officers of Health, Civil Supply, and Animal Husbandry Departments and they would ensure timely supply of food, medicines, and fodder for affected families. Earlier today, Singh did an aerial survey of Nawanshahr, Ludhiana, Phillaur, Shahkot, and Lohian in the state. In a tweet, he said, "A total of 30,000 people are impacted and crop damage reported in 108 villages. There are 14 breaches in Satluj. Considering the seriousness of the breaches, the Army's help has been sought." In another tweet, Singh said, "Visited affected areas of Jalandhar and Kapurthala. Had a detailed meeting with DCs and Army officials and reviewed the rescue measures." "Interacted with people and ensured supplies of food, water, and medicines on priority. Compensation for flood damages to be given once the water recedes," he added. In the wake of flood situation in the state, the Punjab Chief Minister earlier today wrote to Prime Minister Narendra Modi seeking Rs 1,000 crore special relief package to compensate the losses. The Chief Minister has also urged the Prime Minister to instruct the concerned authorities to waive off crop loans of banks or financial institutions availed by the affected farmers in the affected villages during the current cropping season. The flooding in river Sutlej due to the discharge of water from Bhakra Dam, the heaviest since 1958, had caused extensive damage to the standing crops and inundation of residential areas in the villages, the Chief Minister said.

Punjab to canalise its rivers with technical support from World Bank, ADB

Famed for valuing <a href="https://www.wionews.com/south-asia/in-happy-bhutan-the-prime-minister-is-a-doc-on-saturdays-217279">Gross National Happiness</a> over economic growth, Bhutan is a poster child for sustainable development.&nbsp;

But booming car sales may impact efforts to preserve its rare status as a carbon-negative country and an increase in traffic is testing the good humour of its citizens.

Bhutan has seen a more than five-fold increase in cars, buses and trucks on its roads in the past two decades, according to transport authority director general Pemba Wangchuk with capital Thimphu hardest hit by the influx of vehicles.

Phuntsho Wangdi, a media consultant, says the congestion and lack of parking now make driving stressful in the tiny Himalayan kingdom where there are no traffic lights.&nbsp;

"I wish there were fewer cars. It wasn't like this before," he adds of life in Thimphu, which is home to half the cars in the country.

The nation's economy has grown 7.5 per cent each year in the past decade, according to the World Bank. Officials estimate there is now one car for every seven people in Bhutan, which has a total population of 750,000.

But the nation's narrow country lanes and outdated city roads can barely cope. A lack of infrastructure, along with poor driving etiquette&nbsp;some simply leave their cars parked in the middle of the road -- compounds the problem.

"Every year the number of cars and the number of people are increasing, and the roads have remained the same, and it’s a problem for us," Lhendup, a taxi driver, tells AFP. &nbsp;

Gridlock misery

Morning rush hour journeys that once took five minutes now take more than half an hour.&nbsp;

This may seem a small figure compared to the hours of gridlock faced by commuters in Manila, Jakarta, and Bangkok, but it is a step-change for the Bhutanese who say the situation has rapidly deteriorated in the past year.&nbsp;

"It is chaotic. I eat my breakfast in the car now to save time," says Kuenzang Choden, who drops her four-year-old daughter at school every day before heading to work.&nbsp;

The traffic jams are a sign of the wider economic changes the nation is facing. Bhutan is renowned for prioritising Gross National Happiness over GDP and has captured tourists' imagination as a tranquil, idyllic land, but there are signs of malcontent.&nbsp;

According to the World Bank's 2018 report, the youth unemployment rate is high, as is rural to urban migration, which puts a strain on the resources of towns and cities. And despite its reputation as a place where well-being is prioritised, it ranked 95th out of 156 countries in the 2019 UN World Happiness Report.&nbsp;

The proliferation of the internet and smartphones are fuelling modern desires, while dealers are filling their showrooms with new brands and models from Japan and South Korea to lure buyers.

And while taxes have increased and restrictions put on vehicle loans, car buyers are not discouraged.

Local financial institutions gave 3.2 billion ngultrums ($46 million) in car loans in 2015, but by last year the amount had reached 6.7 billion ngultrums ($96 million).

The figures please local businessmen but worry environmentalists keen to ensure Bhutan remains one of the world's greenest countries.

Environmental activist Yeshey Dorji explains: "As a nation that prides itself on being a carbon-negative country, the increase in the number of fossil fuel vehicles speaks poorly of our leadership position in environmental conservation."

Radical measures&nbsp;

Bhutan and Suriname, both with lush forests, are the only two countries to claim they are carbon negative, absorbing more carbon pollution than they give off.

Methane from cows, the burning of crops and other farm activities used to be Bhutan's main source of greenhouse gases. But that has changed in recent years to industry and cars.

Bhutan's constitution dictates that at least 60 per cent of the country must be forest and the figure is currently above 70 per cent. &nbsp;&nbsp;

But Bhutan is now importing more in fossil fuels than it exports in hydropower to India -- the country's biggest revenue earner.

Public transport is poor, particularly in Thimphu, which is home to 100,000 people but barely 40 buses.

The capital's mayor Kinlay Dorji plans to introduce bus-only lanes on city roads and wants to buy more buses.

"Its time for radical measures," he says.

"We have to make public transport more attractive and discourage owning cars," he adds, warning that unless action was taken Thimphu risked grinding to a standstill.

To ease congestion, the city is also constructing its first two multi-storey car parks that will each take about 600 cars.

The National Environment Commission insists Bhutan is still carbon-negative despite the traffic jams and vehicle boom but wants to stop things worsening.&nbsp;

Commission secretary Dasho Sonam P. Wangdi explains: "We cannot stop people from buying cars, but we can introduce alternative, less polluting cars such as the hybrid and electric ones to reduce carbon footprint." 
&nbsp;

Famed for valuing Gross National Happiness over economic growth, Bhutan is a poster child for sustainable development. But booming car sales may impact efforts to preserve its rare status as a carbon-negative country and an increase in traffic is testing the good humour of its citizens.

Famed for valuing Gross National Happiness over economic growth, Bhutan is a poster child for sustainable development. But booming car sales may impact efforts to preserve its rare status as a carbon-negative country and an increase in traffic is testing the good humour of its citizens. Bhutan has seen a more than five-fold increase in cars, buses and trucks on its roads in the past two decades, according to transport authority director general Pemba Wangchuk with capital Thimphu hardest hit by the influx of vehicles. Phuntsho Wangdi, a media consultant, says the congestion and lack of parking now make driving stressful in the tiny Himalayan kingdom where there are no traffic lights. "I wish there were fewer cars. It wasn't like this before," he adds of life in Thimphu, which is home to half the cars in the country. The nation's economy has grown 7.5 per cent each year in the past decade, according to the World Bank. Officials estimate there is now one car for every seven people in Bhutan, which has a total population of 750,000. But the nation's narrow country lanes and outdated city roads can barely cope. A lack of infrastructure, along with poor driving etiquette some simply leave their cars parked in the middle of the road -- compounds the problem. "Every year the number of cars and the number of people are increasing, and the roads have remained the same, and it’s a problem for us," Lhendup, a taxi driver, tells AFP. Gridlock misery Morning rush hour journeys that once took five minutes now take more than half an hour. This may seem a small figure compared to the hours of gridlock faced by commuters in Manila, Jakarta, and Bangkok, but it is a step-change for the Bhutanese who say the situation has rapidly deteriorated in the past year. "It is chaotic. I eat my breakfast in the car now to save time," says Kuenzang Choden, who drops her four-year-old daughter at school every day before heading to work. The traffic jams are a sign of the wider economic changes the nation is facing. Bhutan is renowned for prioritising Gross National Happiness over GDP and has captured tourists' imagination as a tranquil, idyllic land, but there are signs of malcontent. According to the World Bank's 2018 report, the youth unemployment rate is high, as is rural to urban migration, which puts a strain on the resources of towns and cities. And despite its reputation as a place where well-being is prioritised, it ranked 95th out of 156 countries in the 2019 UN World Happiness Report. The proliferation of the internet and smartphones are fuelling modern desires, while dealers are filling their showrooms with new brands and models from Japan and South Korea to lure buyers. And while taxes have increased and restrictions put on vehicle loans, car buyers are not discouraged. Local financial institutions gave 3.2 billion ngultrums ($46 million) in car loans in 2015, but by last year the amount had reached 6.7 billion ngultrums ($96 million). The figures please local businessmen but worry environmentalists keen to ensure Bhutan remains one of the world's greenest countries. Environmental activist Yeshey Dorji explains: "As a nation that prides itself on being a carbon-negative country, the increase in the number of fossil fuel vehicles speaks poorly of our leadership position in environmental conservation." Radical measures Bhutan and Suriname, both with lush forests, are the only two countries to claim they are carbon negative, absorbing more carbon pollution than they give off. Methane from cows, the burning of crops and other farm activities used to be Bhutan's main source of greenhouse gases. But that has changed in recent years to industry and cars. Bhutan's constitution dictates that at least 60 per cent of the country must be forest and the figure is currently above 70 per cent. But Bhutan is now importing more in fossil fuels than it exports in hydropower to India -- the country's biggest revenue earner. Public transport is poor, particularly in Thimphu, which is home to 100,000 people but barely 40 buses. The capital's mayor Kinlay Dorji plans to introduce bus-only lanes on city roads and wants to buy more buses. "Its time for radical measures," he says. "We have to make public transport more attractive and discourage owning cars," he adds, warning that unless action was taken Thimphu risked grinding to a standstill. To ease congestion, the city is also constructing its first two multi-storey car parks that will each take about 600 cars. The National Environment Commission insists Bhutan is still carbon-negative despite the traffic jams and vehicle boom but wants to stop things worsening. Commission secretary Dasho Sonam P. Wangdi explains: "We cannot stop people from buying cars, but we can introduce alternative, less polluting cars such as the hybrid and electric ones to reduce carbon footprint."

Car boom brings gridlock misery to 'green and happy' Bhutan

<a href="https://www.wionews.com/india-news/three-time-delhi-chief-minister-sheila-dikshit-cremated-with-state-honours-at-nigam-bodh-ghat-237451">Three-time Delhi Chief Minister Sheila Dikshit cremated with State Honours at Nigam Bodh Ghat</a>

Dikshit's mortal remains were taken to the Congress headquarters from her residence in South Delhi this morning from where hundreds joined the procession to Nigam Bodh Ghat where she was cremated this afternoon.

<a href="https://www.wionews.com/india-news/chandrayaan-2-to-perform-15-maneuvers-countdown-for-the-launch-begins-237462">Chandrayaan-2 to perform 15 maneuvers, countdown for the launch begins</a>

The&nbsp;Chandrayaan-2&nbsp;will perform 15 crucial maneuvers in the days to come, said Indian Space Research Organisation (ISRO) chief K Sivan on Sunday. The&nbsp;countdown for the launch of Chandrayaan-2, India's second lunar exploration mission after Chandrayaan-1, begins Sunday evening.

<a href="https://www.wionews.com/world/hong-kong-on-security-alert-as-thousands-march-in-fresh-wave-of-protests-237449">Hong Kong on security alert as thousands march in fresh wave of protests</a>

Tens of thousands marched in sweltering heat in Hong Kong&nbsp;on Sunday as anti-government protests show no sign of let-up, with anger over an extradition bill morphing into a fresh front against what many see as an erosion of freedoms by Beijing.

<a href="https://www.wionews.com/india-news/world-bank-may-fund-priority-sectors-other-than-amaravati-project-237469">World Bank may fund priority sectors other than Amaravati project</a>

The Andhra Pradesh government on Sunday said that The World Bank has given positive indications towards compensating the dropped $300 million&nbsp;loan for developing capital city of Amaravati&nbsp;and moving the aid to other important sectors.

<a href="https://www.wionews.com/south-asia/imran-khan-meets-pakistan-businessmen-during-us-visit-237467">Imran Khan meets Pakistan businessmen during US visit</a>

The businessmen called on Khan at the Pakistan Embassy in the US capital, according to Geo News.

Three-time Delhi Chief Minister Sheila Dikshit cremated with State Honours at Nigam Bodh Ghat Dikshit's mortal remains were taken to the Congress headquarters from her residence in South Delhi this morning from where hundreds joined the procession to Nigam Bodh Ghat where she was cremated this afternoon.

Three-time Delhi Chief Minister Sheila Dikshit cremated with State Honours at Nigam Bodh Ghat Dikshit's mortal remains were taken to the Congress headquarters from her residence in South Delhi this morning from where hundreds joined the procession to Nigam Bodh Ghat where she was cremated this afternoon. Chandrayaan-2 to perform 15 maneuvers, countdown for the launch begins The Chandrayaan-2 will perform 15 crucial maneuvers in the days to come, said Indian Space Research Organisation (ISRO) chief K Sivan on Sunday. The countdown for the launch of Chandrayaan-2, India's second lunar exploration mission after Chandrayaan-1, begins Sunday evening. Hong Kong on security alert as thousands march in fresh wave of protests Tens of thousands marched in sweltering heat in Hong Kong on Sunday as anti-government protests show no sign of let-up, with anger over an extradition bill morphing into a fresh front against what many see as an erosion of freedoms by Beijing. World Bank may fund priority sectors other than Amaravati project The Andhra Pradesh government on Sunday said that The World Bank has given positive indications towards compensating the dropped $300 million loan for developing capital city of Amaravati and moving the aid to other important sectors. Imran Khan meets Pakistan businessmen during US visit The businessmen called on Khan at the Pakistan Embassy in the US capital, according to Geo News.

News brief: Big stories of the day

The Andhra Pradesh government on Sunday said that The World Bank has given positive indications towards compensating the dropped $300 million <a href="https://www.wionews.com/business-economy/world-bank-pulls-300-million-of-funding-for-amaravati-after-delhi-drops-support-237142">loan for developing capital city of Amaravati</a> and moving the aid to other important sectors.

According to a press note released by the Chief Minister's office on Sunday, "The World Bank has given enough indications pointing at compensating the dropped $300 million loan for the capital city to other sectors and there is every possibility of an increase in the quantum of aid."

"The Washington-based bank is now not averse to extend the loan to Andhra Pradesh Government, with YS Jagan Mohan Reddy at the helm, should it mention its priorities," it added.

The statement from the Andhra Pradesh government came days after the World Bank dropped the multi-crore Amaravati infrastructure project citing non-compliance of its policies.

The Chief Minister's office also slammed the previous Chandrababu Naidu government for alleged corrupt practices which forced the World Bank to drop out of the Amaravati development project.

"The main reasons behind the World Bank backing out of the Amaravati Capital City project were considered to be rampant corruption besides flouting of various socio-economic norms. The TDP government has invited tenders for infrastructure development even before the World Bank loan details were finalised," the release noted.

It added that the World Bank team that toured the proposed city area region in 2017 found many irregularities in the tender process. The release further read, "The team has found numerous irregularities in land pooling, utilisation of verdant agriculture land for other purposes, agriculture workers losing livelihood, serious environmental violations, the plan of the new proposed capital affecting the course of Krishna river and other issues."&nbsp;

The Andhra Pradesh government on Sunday said that The World Bank has given positive indications towards compensating the dropped $300 million loan for developing capital city of Amaravati and moving the aid to other important sectors.

The Andhra Pradesh government on Sunday said that The World Bank has given positive indications towards compensating the dropped $300 million loan for developing capital city of Amaravati and moving the aid to other important sectors. According to a press note released by the Chief Minister's office on Sunday, "The World Bank has given enough indications pointing at compensating the dropped $300 million loan for the capital city to other sectors and there is every possibility of an increase in the quantum of aid." "The Washington-based bank is now not averse to extend the loan to Andhra Pradesh Government, with YS Jagan Mohan Reddy at the helm, should it mention its priorities," it added. The statement from the Andhra Pradesh government came days after the World Bank dropped the multi-crore Amaravati infrastructure project citing non-compliance of its policies. The Chief Minister's office also slammed the previous Chandrababu Naidu government for alleged corrupt practices which forced the World Bank to drop out of the Amaravati development project. "The main reasons behind the World Bank backing out of the Amaravati Capital City project were considered to be rampant corruption besides flouting of various socio-economic norms. The TDP government has invited tenders for infrastructure development even before the World Bank loan details were finalised," the release noted. It added that the World Bank team that toured the proposed city area region in 2017 found many irregularities in the tender process. The release further read, "The team has found numerous irregularities in land pooling, utilisation of verdant agriculture land for other purposes, agriculture workers losing livelihood, serious environmental violations, the plan of the new proposed capital affecting the course of Krishna river and other issues."

World Bank may fund priority sectors other than Amaravati project

<a href="https://www.wionews.com/india-news/world-bank-retains-indias-growth-rate-for-fy19-20-at-75-224461">The World Bank</a> said on Friday it had withdrawn $300 million of funding for a new capital in Andhra Pradesh after the central government dropped support for the project.

The Beijing-backed Asian Infrastructure Investment Bank (AIIB), that was due to finance $200 million of the project, then said it was reviewing its involvement.&nbsp;

The construction of the city, known as Amaravati, is the brainchild of the state's former chief minister, <a href="https://www.wionews.com/india-news/central-budget-disappointing-says-chandrababu-naidu-233470 ">N&nbsp;Chandrababu Naidu</a>, who lost power in elections in May.&nbsp;

The two banks were due to provide the lion's share of the $715 million cost of critical funding for transport, sanitation and water supply.

The World Bank's withdrawal was reported by Indian media on Thursday but the federal government's involvement in that decision has not been previously disclosed, nor had the AIIB's plans for a review.

Prime Minister Narendra Modi laid the foundation stone for the project in 2015, but he and Naidu fell out after Naidu's party broke from Modi's ruling coalition last year.&nbsp;

"The government of India has withdrawn its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project," Sudip Mozumder, a New Delhi-based spokesman for the bank, told Reuters.&nbsp;

"The World Bank’s Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government’s decision."&nbsp;

AIIB spokeswoman Laurel Ostfield told Reuters in Beijing that it was aware the World Bank has dropped the project from its investment pipeline.

"Our investment committee will be discussing our involvement in the project early next week," he said.&nbsp;

Dr P Lakshmi Narasimham, the commissioner of the Andhra Pradesh Capital Region Development Authority, the state body overseeing construction of the city, declined to comment on the implications of the funding withdrawal.&nbsp;

The Amaravati project, built on greenfield land on the banks of the sacred Krishna River, has been beset by accusations from activist groups of corruption and environmental damage. The state government has denied the accusations.

Andhra Pradesh was split in two in 2014, with the new state of Telangana containing the historic capital, Hyderabad, though both states agreed to share it for 10 years.

"For a change, good sense has prevailed upon the bank to withdraw from the disastrous programme," Sreedhar R., the director of the Environics Trust, one of the activist groups that has been critical of the project, said in a statement.&nbsp;

"This also vindicates our stance that (AIIB) which is a co-financier in the project, can no longer hide behind the World Bank which it has been doing." 
&nbsp;

The World Bank said on Friday it had withdrawn $300 million of funding for a new capital in Andhra Pradesh after the central government dropped support for the project.

The World Bank said on Friday it had withdrawn $300 million of funding for a new capital in Andhra Pradesh after the central government dropped support for the project. The Beijing-backed Asian Infrastructure Investment Bank (AIIB), that was due to finance $200 million of the project, then said it was reviewing its involvement. The construction of the city, known as Amaravati, is the brainchild of the state's former chief minister, N Chandrababu Naidu, who lost power in elections in May. The two banks were due to provide the lion's share of the $715 million cost of critical funding for transport, sanitation and water supply. The World Bank's withdrawal was reported by Indian media on Thursday but the federal government's involvement in that decision has not been previously disclosed, nor had the AIIB's plans for a review. Prime Minister Narendra Modi laid the foundation stone for the project in 2015, but he and Naidu fell out after Naidu's party broke from Modi's ruling coalition last year. "The government of India has withdrawn its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project," Sudip Mozumder, a New Delhi-based spokesman for the bank, told Reuters. "The World Bank’s Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government’s decision." AIIB spokeswoman Laurel Ostfield told Reuters in Beijing that it was aware the World Bank has dropped the project from its investment pipeline. "Our investment committee will be discussing our involvement in the project early next week," he said. Dr P Lakshmi Narasimham, the commissioner of the Andhra Pradesh Capital Region Development Authority, the state body overseeing construction of the city, declined to comment on the implications of the funding withdrawal. The Amaravati project, built on greenfield land on the banks of the sacred Krishna River, has been beset by accusations from activist groups of corruption and environmental damage. The state government has denied the accusations. Andhra Pradesh was split in two in 2014, with the new state of Telangana containing the historic capital, Hyderabad, though both states agreed to share it for 10 years. "For a change, good sense has prevailed upon the bank to withdraw from the disastrous programme," Sreedhar R., the director of the Environics Trust, one of the activist groups that has been critical of the project, said in a statement. "This also vindicates our stance that (AIIB) which is a co-financier in the project, can no longer hide behind the World Bank which it has been doing."

World Bank pulls $300 million of funding for Amaravati after Delhi drops support

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

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

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

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

Pakistan will have to pay almost $6 billion in damages to a foreign gold mining firm whose dig was shut down by the government in 2011, the World Bank said Sunday.

The consortium Tethyan Copper company -- of which Canadian gold firm Barrick and Chile's Antofagasta Minerals control 37.5 per cent each -- is the largest Foreign Direct Investment mining project in the country.

More than a decade ago the group found vast gold and copper deposits at Reko Diq, in the turbulent southwestern Baluchistan province, and had planned a hugely lucrative open-pit mine.

But the project came to a standstill in 2011 after the local government refused to renew the consortium's lease, and in 2013 Pakistan's top court declared it invalid.

On Friday, the World Bank's international arbitration tribunal committee awarded $5.84 billion in damages to Tethyan, according to a statement from the company, because of the government's decision to shut down the mine.

Pakistan's attorney general, Anwar Mansoor Khan, said in a statement they had noted the decision "with disappointment".

The country's legal experts were "studying the Award and reflecting upon its financial and legal implications," the statement continued. &nbsp;

Ivan Arriagada, Antofagasta's Chief Executive Officer, said: "We are pleased to reach this milestone after more than seven years of arbitration."

"We remain willing to discuss the potential for a negotiated settlement with Pakistan and will continue to protect our commercial interests and legal rights until the conclusion of this dispute," consortium chairman William Hayes added.

It comes weeks after prime minister Imran Khan secured a $6 billion bailout from the IMF, amid devaluations of the rupee and soaring inflation.

Barrick and Antofagasta say the proposed plant could produce 600,000 tons of copper and 250,000 ounces of gold a year.

But the mine is in Chagai district, one of the most deprived parts of Pakistan and rife with Taliban, sectarian and separatist violence.

The provincial government is also a sleeping partner in the Reko Diq project with a 25 per cent stake.

Mining in Baluchistan is dominated by small companies focused primarily on marble and granite, experts say, which waste up to 80 per cent of potential because of poor extraction techniques.

Experts have called for more transparent policies to allow mining to flourish.

Pakistan will have to pay almost $6 billion in damages to a foreign gold mining firm whose dig was shut down by the government in 2011, the World Bank said Sunday.

Pakistan will have to pay almost $6 billion in damages to a foreign gold mining firm whose dig was shut down by the government in 2011, the World Bank said Sunday. The consortium Tethyan Copper company -- of which Canadian gold firm Barrick and Chile's Antofagasta Minerals control 37.5 per cent each -- is the largest Foreign Direct Investment mining project in the country. More than a decade ago the group found vast gold and copper deposits at Reko Diq, in the turbulent southwestern Baluchistan province, and had planned a hugely lucrative open-pit mine. But the project came to a standstill in 2011 after the local government refused to renew the consortium's lease, and in 2013 Pakistan's top court declared it invalid. On Friday, the World Bank's international arbitration tribunal committee awarded $5.84 billion in damages to Tethyan, according to a statement from the company, because of the government's decision to shut down the mine. Pakistan's attorney general, Anwar Mansoor Khan, said in a statement they had noted the decision "with disappointment". The country's legal experts were "studying the Award and reflecting upon its financial and legal implications," the statement continued. Ivan Arriagada, Antofagasta's Chief Executive Officer, said: "We are pleased to reach this milestone after more than seven years of arbitration." "We remain willing to discuss the potential for a negotiated settlement with Pakistan and will continue to protect our commercial interests and legal rights until the conclusion of this dispute," consortium chairman William Hayes added. It comes weeks after prime minister Imran Khan secured a $6 billion bailout from the IMF, amid devaluations of the rupee and soaring inflation. Barrick and Antofagasta say the proposed plant could produce 600,000 tons of copper and 250,000 ounces of gold a year. But the mine is in Chagai district, one of the most deprived parts of Pakistan and rife with Taliban, sectarian and separatist violence. The provincial government is also a sleeping partner in the Reko Diq project with a 25 per cent stake. Mining in Baluchistan is dominated by small companies focused primarily on marble and granite, experts say, which waste up to 80 per cent of potential because of poor extraction techniques. Experts have called for more transparent policies to allow mining to flourish.

Pakistan to pay foreign firm $6 billion over mine closure: World Bank

Anshula Kant, managing director of the State Bank of India, has been appointed as managing director and chief financial officer of the World Bank, its president David Malpass announced on Friday. As Managing Director and Chief Financial Officer, Kant will be responsible for financial and risk management of the World Bank Group, reporting to the President.

SBI MD Anshula Kant appointed as World Bank CFO and MD

The World Bank has approved $722 million<a href="https://www.wionews.com/south-asia/pakistan-receives-500-from-qatar-231719"> loan for Pakistan</a> that will largely be used for improving civic and public transport facilities in Karachi, according to a media report.

Out of the approved amount, $652 million will be used for the development of Karachi, while the rest $70 million will be used for improving tourism services in the country's northwestern Khyber-Pakhtunkhwa region, The Express Tribune reported on Saturday.

The board of directors of the World Bank approved the<a href="https://www.wionews.com/south-asia/pakistan-signs-375-million-syndicated-loan-with-uae-banks-231580"> loan </a>on Thursday.

The projects in Karachi will focus on urban management, public transport, safe water and sanitation to enhance its liveability and competitiveness, the World Bank said in its statement.

The projects have been approved in light of the findings of the Karachi Transformative Strategy which estimated that infrastructure needed spending worth $9-10 billion over a period of next 10 years for the city to develop.

The study noted that compared to huge financing needs, the city was not generating enough resources to meet these requirements, the report said.

The World Bank has approved $722 million loan for Pakistan that will largely be used for improving civic and public transport facilities in Karachi, according to a media report.

The World Bank has approved $722 million loan for Pakistan that will largely be used for improving civic and public transport facilities in Karachi, according to a media report. Out of the approved amount, $652 million will be used for the development of Karachi, while the rest $70 million will be used for improving tourism services in the country's northwestern Khyber-Pakhtunkhwa region, The Express Tribune reported on Saturday. The board of directors of the World Bank approved the loan on Thursday. The projects in Karachi will focus on urban management, public transport, safe water and sanitation to enhance its liveability and competitiveness, the World Bank said in its statement. The projects have been approved in light of the findings of the Karachi Transformative Strategy which estimated that infrastructure needed spending worth $9-10 billion over a period of next 10 years for the city to develop. The study noted that compared to huge financing needs, the city was not generating enough resources to meet these requirements, the report said.

World bank grants $722 million loan for Pakistan to improve civic facilities

China's global Belt and Road Initiative could boost economies and reduce poverty rates in dozens of developing countries, but risks environmental damage, debt and corruption if improvements aren't made, the World Bank said Wednesday.

President Xi Jinping's signature foreign policy aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects, with hundreds of billions of dollars in financing from Chinese banks.

Critics, however, say the six-year-old BRI is a plan to boost Beijing's global influence, riddled with opaque deals favouring Chinese companies, and will saddle nations with debt and environmental damage.

<a href="https://www.wionews.com/world/trump-considered-nominating-daughter-ivanka-for-head-of-world-bank-209867">The World Bank</a>'s "Belt and Road Economics" report said the project has "the potential to substantially improve trade, foreign investment, and living conditions", but only if China and corridor countries make policy reforms to improve transparency, expand trade and mitigate against environmental and corruption risks.&nbsp;

While trade will "increase sharply, if unevenly" for economies along the routes, the "potential gains come with considerable risks", according to Ceyla Pazarbasioglu, a World Bank vice president.

The report estimated that the BRI would boost trade by 2.8 to 9.7 per cent for participating countries and between 1.7 and 6.2 per cent for the world.

However, the study found that around a quarter of those economies already have high debt levels and for some them, "medium-term vulnerabilities could increase".

The report said large infrastructure projects are "inherently risky," as they can create corruption and failures in public procurement.

This has caused the US, India and some European nations to look at the project with suspicion.

Greater transparency&nbsp;

<a href="https://www.wionews.com/business-economy/world-bank-slashes-global-growth-forecast-amid-deepening-us-china-trade-conflict-224398">The World Bank </a>study found Chinese firms account for the majority of BRI contracts, although "limited data" was available. According to one estimate, it said more than 60 per cent of Chinese-funded BRI project&nbsp;is allocated to Chinese companies.&nbsp;

"Little is known about the processes for selecting firms," the World Bank report said.&nbsp;

"Moving toward international good practices such as open and transparent public procurement would increase the likelihood that BRI projects are allocated to the firms best placed to implement them."

"Belt and Road Economics" recommended the BRI made information regarding planning, fiscal costs, budgeting and procurement more available to the public to improve the effectiveness of individual infrastructure investments and national development strategies.&nbsp;

"Greater transparency is essential to encourage community involvement and build public trust in investment decisions," the report said.

President Xi has already tried to bat away concerns, telling a gathering of 37 world leaders in Beijing in April: "Everything should be done transparently and we should have zero tolerance for corruption."

He told journalists at the same forum: "We are committed to supporting open, clean and green development and rejecting protectionism."

Chinese foreign ministry spokesman Lu Kang said on Wednesday in response to the World Bank report that China would study "earnestly" its opinions and suggestions.

He added China would "continue to adhere to the principles of joint discussion, construction, sharing and openness, tolerance, and transparency".

China's global Belt and Road Initiative could boost economies and reduce poverty rates in dozens of developing countries, but risks environmental damage, debt and corruption if improvements aren't made, the World Bank said Wednesday.

China's global Belt and Road Initiative could boost economies and reduce poverty rates in dozens of developing countries, but risks environmental damage, debt and corruption if improvements aren't made, the World Bank said Wednesday. President Xi Jinping's signature foreign policy aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects, with hundreds of billions of dollars in financing from Chinese banks. Critics, however, say the six-year-old BRI is a plan to boost Beijing's global influence, riddled with opaque deals favouring Chinese companies, and will saddle nations with debt and environmental damage. The World Bank's "Belt and Road Economics" report said the project has "the potential to substantially improve trade, foreign investment, and living conditions", but only if China and corridor countries make policy reforms to improve transparency, expand trade and mitigate against environmental and corruption risks. While trade will "increase sharply, if unevenly" for economies along the routes, the "potential gains come with considerable risks", according to Ceyla Pazarbasioglu, a World Bank vice president. The report estimated that the BRI would boost trade by 2.8 to 9.7 per cent for participating countries and between 1.7 and 6.2 per cent for the world. However, the study found that around a quarter of those economies already have high debt levels and for some them, "medium-term vulnerabilities could increase". The report said large infrastructure projects are "inherently risky," as they can create corruption and failures in public procurement. This has caused the US, India and some European nations to look at the project with suspicion. Greater transparency The World Bank study found Chinese firms account for the majority of BRI contracts, although "limited data" was available. According to one estimate, it said more than 60 per cent of Chinese-funded BRI project is allocated to Chinese companies. "Little is known about the processes for selecting firms," the World Bank report said. "Moving toward international good practices such as open and transparent public procurement would increase the likelihood that BRI projects are allocated to the firms best placed to implement them." "Belt and Road Economics" recommended the BRI made information regarding planning, fiscal costs, budgeting and procurement more available to the public to improve the effectiveness of individual infrastructure investments and national development strategies. "Greater transparency is essential to encourage community involvement and build public trust in investment decisions," the report said. President Xi has already tried to bat away concerns, telling a gathering of 37 world leaders in Beijing in April: "Everything should be done transparently and we should have zero tolerance for corruption." He told journalists at the same forum: "We are committed to supporting open, clean and green development and rejecting protectionism." Chinese foreign ministry spokesman Lu Kang said on Wednesday in response to the World Bank report that China would study "earnestly" its opinions and suggestions. He added China would "continue to adhere to the principles of joint discussion, construction, sharing and openness, tolerance, and transparency".

Reforms and transparency needed for Belt and Road success: World Bank

<a href="https://www.wionews.com/south-asia/pakistans-economic-growth-falls-to-329-per-cent-in-fy19-226094">Pakistan </a>on Tuesday signed three loan agreements worth a total of $918 million with the World Bank, Prime Minister <a href="https://www.wionews.com/south-asia/pakistan-stocks-crash-as-pm-imran-receives-insufficient-imf-bailout-218461">Imran Khan</a>'s adviser on finance has said as the cash-strapped country tries to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy.

The amount will be used to fund three projects, $ 400 million each on Pakistan Raises Revenue Programme and Higher Education Development in Pakistan and $ 118 million on Khyber Pakhtunkhwa Revenue Mobilisation and Resource Management Programme, Dawn News reported.

Prime Minister Khan's Adviser Shaikh witnessed the signing of the three agreements between Country Director of World Bank Patchamuthu Illangovan and Economic Affairs Division Secretary Noor Ahmed, the representatives of the Higher Education Commission and Government of Khyber Pakhtunkhwa.

Sheikh thanked the World Bank "for extending their continuous support to Pakistan's government in its efforts to achieve the sustainable economic development of the country".

Pakistan is seeking help from multiple lenders like the IMF, the World Bank and the ADB to overcome a ballooning balance of payments crisis.

Last month, it reached an agreement in principle with the <a href="https://www.wionews.com/south-asia/decisive-policies-and-reforms-must-for-pakistans-economic-stability-imf-218413">International Monetary Fund</a> (IMF) for a three-year, $ 6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy.

Meanwhile, the Asian Development Bank (ADB) has said it is holding meetings with Pakistan on loans.

"These discussions are ongoing and details of the plans as well as the volume of ADB's financial support, once finalised, will be contingent upon the approval of ADB management and its Board of Directors," ADB's Country Director for Pakistan Xiaohong Yang said.

China is investing heavily in Pakistan under the $ 60 billion China-Pakistan Economic Corridor (CPEC).

Launched in 2015, 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.

The US has serious reservations over global lenders like the IMF providing a bailout to Pakistan to pay off Chinese debts.

Secretary of State Mike Pompeo in the past warned that any potential IMF bailout for Pakistan should not provide funds to pay off Chinese lenders, saying "we will be watching what the IMF does... There is no rationale for IMF tax dollars and associated with that American dollar that is part of the IMF funding, for those to go to bail out Chinese bondholders or China itself".

Pakistan on Tuesday signed three loan agreements worth a total of $918 million with the World Bank, Prime Minister Imran Khan's adviser on finance has said as the cash-strapped country tries to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy.

Pakistan on Tuesday signed three loan agreements worth a total of $918 million with the World Bank, Prime Minister Imran Khan's adviser on finance has said as the cash-strapped country tries to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy. The amount will be used to fund three projects, $ 400 million each on Pakistan Raises Revenue Programme and Higher Education Development in Pakistan and $ 118 million on Khyber Pakhtunkhwa Revenue Mobilisation and Resource Management Programme, Dawn News reported. Prime Minister Khan's Adviser Shaikh witnessed the signing of the three agreements between Country Director of World Bank Patchamuthu Illangovan and Economic Affairs Division Secretary Noor Ahmed, the representatives of the Higher Education Commission and Government of Khyber Pakhtunkhwa. Sheikh thanked the World Bank "for extending their continuous support to Pakistan's government in its efforts to achieve the sustainable economic development of the country". Pakistan is seeking help from multiple lenders like the IMF, the World Bank and the ADB to overcome a ballooning balance of payments crisis. Last month, it reached an agreement in principle with the International Monetary Fund (IMF) for a three-year, $ 6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy. Meanwhile, the Asian Development Bank (ADB) has said it is holding meetings with Pakistan on loans. "These discussions are ongoing and details of the plans as well as the volume of ADB's financial support, once finalised, will be contingent upon the approval of ADB management and its Board of Directors," ADB's Country Director for Pakistan Xiaohong Yang said. China is investing heavily in Pakistan under the $ 60 billion China-Pakistan Economic Corridor (CPEC). Launched in 2015, 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. The US has serious reservations over global lenders like the IMF providing a bailout to Pakistan to pay off Chinese debts. Secretary of State Mike Pompeo in the past warned that any potential IMF bailout for Pakistan should not provide funds to pay off Chinese lenders, saying "we will be watching what the IMF does... There is no rationale for IMF tax dollars and associated with that American dollar that is part of the IMF funding, for those to go to bail out Chinese bondholders or China itself".

Cash-strapped Pakistan inks 3 loan deals worth $918 million with World Bank

World Bank Slashes Global Growth Forecast, But Retains Projections For India U.S.-China trade war, Brexit uncertainty ; World Bank lowers global growth forecast, but India's economic growth is pegged at 7.5% for 2019. Here's a summary of the World Bank's assessment on the risks in front of global economy

Gravitas: World Bank cuts global growth forecast

The World Bank slashed its global growth forecasts for this year in a report released Tuesday that portrayed a world gripped by deepening <a href="https://www.wionews.com/business-economy/india-highest-recipient-of-remittances-at-79-billion-in-2018-world-bank-208916">trade conflict, tumbling confidence</a> and increasingly skittish investment.

Although the global development lender currently expects a modest <a href="https://www.wionews.com/business-economy/china-expected-to-continue-win-win-solutions-for-world-development-world-bank-184302">recovery 2020 and 2021</a>, the bank said in its semi-annual report that a lot will have to go right for this to happen.

Instead the growing risks suggest the outlook could instead grow darker still.

The greatest danger on the horizon is the prospect of worsening trade clashes between major world economies -- a specter that rose again last week when US President Donald Trump announced fresh punitive duties on Mexican goods in a dispute over immigration policy.

The world economy is now expected to expand by 2.6 per cent this year, three tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report.

The World Bank also sounded the alarm about rising debt levels and warned emerging economies they could soon regret the decision to borrow in search of a growth boost.

Newly-installed World Bank President David Malpass, who in his previous position with the US Treasury participated in Trump's stalled trade negotiations with China, said global growth is "fragile" and the slowdown jeopardizes progress in battling world poverty.

"The global economic outlook, in both the near and long term, is confronting substantial challenges," he told reporters.

The new forecast was decidedly gloomier than the latest outlook by the International Monetary Fund, released in April, but which likewise predicted a slowdown and warned of the risks posed by trade conflicts.

"The bottom line is that the global economy is coming to a crossroads," said World Bank economist Ayhan Kose, who oversaw the report, said.

"We need to find ways to stabilize growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP.

World trade volume also is expected to drop off sharply, growing by 2.6 per cent this year, the slowest pace since the global financial crisis and a full percentage point lower than January's forecast.

In East Asia and the Pacific, total economic output is likely to drop below six per cent for the first time since the Asian financial crisis more than 20 years ago.

China's forecast is little changed, with growth projected to slow to 6.2 to per cent this year.

The forecast for the United States is unchanged, with GDP growth slowing to 2.5 per cent this year before weakening to 1.7 per cent in 2020, though still considerably stronger than other advanced economies.

But American exports to Europe and Asia have seen an "especially acute" slowdown, and conditions in the eurozone economic have "deteriorated rapidly" as exports to China, central Asia and elsewhere have shrunk, according to the report.

Latin America's top two economies, Brazil and Mexico, have taken sharp turns for the worse.&nbsp;

The report did not take Trump's latest tariff threat against Mexico into account -- it was announced Friday and is due to take effect June 10 -- but the World Bank cut the forecast by 0.3 points, calling for expansion of just 1.7 per cent in 2019.

If Trump follows through on his threat, tariffs on all Mexican goods would hit 25 per cent in October.

"The big question is, are we pushing the panic button?" Kose said.&nbsp;

"The answer at the moment is no but I think if tensions escalate further, we have to push the panic button and get ready for a much deeper slowdown."

The forecast also sliced 0.7 per cent off its outlook for Brazil, cutting it to 1.5 per cent.

Kose highlighted concerns over rising debt, saying that since 2007 sovereign debt among emerging and developing economies had risen on average by 15 per cent.

These countries should be "extremely careful" not to allow current low interest rates to entice them into overindulging in more debt, and should instead opt for more reforms that can stimulate investment.

"When you accumulate debt, it makes you more vulnerable to crisis, it limits your policy space and then ultimately, you never know when the interest rate's going to increase," he said.

The World Bank slashed its global growth forecasts for this year in a report released Tuesday that portrayed a world gripped by deepening trade conflict, tumbling confidence and increasingly skittish investment.

The World Bank slashed its global growth forecasts for this year in a report released Tuesday that portrayed a world gripped by deepening trade conflict, tumbling confidence and increasingly skittish investment. Although the global development lender currently expects a modest recovery 2020 and 2021, the bank said in its semi-annual report that a lot will have to go right for this to happen. Instead the growing risks suggest the outlook could instead grow darker still. The greatest danger on the horizon is the prospect of worsening trade clashes between major world economies -- a specter that rose again last week when US President Donald Trump announced fresh punitive duties on Mexican goods in a dispute over immigration policy. The world economy is now expected to expand by 2.6 per cent this year, three tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report. The World Bank also sounded the alarm about rising debt levels and warned emerging economies they could soon regret the decision to borrow in search of a growth boost. Newly-installed World Bank President David Malpass, who in his previous position with the US Treasury participated in Trump's stalled trade negotiations with China, said global growth is "fragile" and the slowdown jeopardizes progress in battling world poverty. "The global economic outlook, in both the near and long term, is confronting substantial challenges," he told reporters. The new forecast was decidedly gloomier than the latest outlook by the International Monetary Fund, released in April, but which likewise predicted a slowdown and warned of the risks posed by trade conflicts. "The bottom line is that the global economy is coming to a crossroads," said World Bank economist Ayhan Kose, who oversaw the report, said. "We need to find ways to stabilize growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP. World trade volume also is expected to drop off sharply, growing by 2.6 per cent this year, the slowest pace since the global financial crisis and a full percentage point lower than January's forecast. In East Asia and the Pacific, total economic output is likely to drop below six per cent for the first time since the Asian financial crisis more than 20 years ago. China's forecast is little changed, with growth projected to slow to 6.2 to per cent this year. The forecast for the United States is unchanged, with GDP growth slowing to 2.5 per cent this year before weakening to 1.7 per cent in 2020, though still considerably stronger than other advanced economies. But American exports to Europe and Asia have seen an "especially acute" slowdown, and conditions in the eurozone economic have "deteriorated rapidly" as exports to China, central Asia and elsewhere have shrunk, according to the report. Latin America's top two economies, Brazil and Mexico, have taken sharp turns for the worse. The report did not take Trump's latest tariff threat against Mexico into account -- it was announced Friday and is due to take effect June 10 -- but the World Bank cut the forecast by 0.3 points, calling for expansion of just 1.7 per cent in 2019. If Trump follows through on his threat, tariffs on all Mexican goods would hit 25 per cent in October. "The big question is, are we pushing the panic button?" Kose said. "The answer at the moment is no but I think if tensions escalate further, we have to push the panic button and get ready for a much deeper slowdown." The forecast also sliced 0.7 per cent off its outlook for Brazil, cutting it to 1.5 per cent. Kose highlighted concerns over rising debt, saying that since 2007 sovereign debt among emerging and developing economies had risen on average by 15 per cent. These countries should be "extremely careful" not to allow current low interest rates to entice them into overindulging in more debt, and should instead opt for more reforms that can stimulate investment. "When you accumulate debt, it makes you more vulnerable to crisis, it limits your policy space and then ultimately, you never know when the interest rate's going to increase," he said.

World Bank slashes global growth forecast amid deepening US-China trade conflict

India is projected to grow at 7.5 per cent in the next three years supported by robust investment and private consumption, the <a href="https://www.wionews.com/business-economy/world-bank-slashes-global-growth-forecast-amid-deepening-us-china-trade-conflict-224398">World Bank</a> has said.

The Bank in its Global Economic Prospects released Tuesday said that India is estimated to have grown 7.2 per cent in fiscal year 2018/19, which ended March 31. A slowdown in government consumption was offset by solid investment, which benefitted from public infrastructure spending.&nbsp;

As against a growth rate of 6.6 per cent in 2018, China's growth rate in 2019 is projected to be dropped to 6.2 per cent and then subsequently to 6.1 per cent in 2020 and 6 per cent in 2021, the bank said.&nbsp;

With this India will continue to retain the position of being the fastest growing emerging economy. And by 2021, its growth rate is projected to be 1.5 per cent more than China's 6 per cent.

According to the World Bank, growth in India is projected at 7.5 per cent in Fiscal Year 2019/20 (April 1, 2019 to March 31, 2020), unchanged from the previous forecast, and to stay at this pace through the next two fiscal years.

"Private consumption and investment will benefit from strengthening credit growth amid more accommodative monetary policy, with inflation having fallen below the Reserve Bank of India's target,"&nbsp;it said.&nbsp;

Support from delays in planned fiscal consolidation at the central level should partially offset the effects of political uncertainty around elections in FY2018/19, it said.

The World Bank said that India's urban consumption was supported by a pickup in credit growth, whereas rural consumption was hindered by soft agricultural prices.

On the production side, robust growth was broad-based, with a slight moderation in services and agricultural activity accompanied by an acceleration in the industrial sector. Weakening agricultural production reflected subdued harvest in major crops on the back of less rainfalls, it said.

Services activity softened mainly due to slowing trade, hotel, transport, and communication activity. The industrial sector benefited from strong manufacturing and construction with solid demand for capital goods. The slowing momentum in economic activity in late 2018 carried into the first quarter of 2019, as suggested by softening services and manufacturing Purchasing Managers' Indexes, the report said.

Observing that the new Goods and Services Tax regime is still in the process of being fully established, creating some uncertainty about the projections of government revenues, the report said fiscal deficits continue to exceed official targets in some countries -- India, Pakistan.

Pakistan's growth, on the other hand, is expected to slow further to 2.7 per cent in FY2019/20, which begins July 16, as domestic demand remains depressed and as current account and fiscal deficits diminish only gradually.&nbsp;

India is projected to grow at 7.5 per cent in the next three years supported by robust investment and private consumption, the World Bank has said. The Bank in its Global Economic Prospects released Tuesday said that India is estimated to have grown 7.

India is projected to grow at 7.5 per cent in the next three years supported by robust investment and private consumption, the World Bank has said. The Bank in its Global Economic Prospects released Tuesday said that India is estimated to have grown 7.2 per cent in fiscal year 2018/19, which ended March 31. A slowdown in government consumption was offset by solid investment, which benefitted from public infrastructure spending. As against a growth rate of 6.6 per cent in 2018, China's growth rate in 2019 is projected to be dropped to 6.2 per cent and then subsequently to 6.1 per cent in 2020 and 6 per cent in 2021, the bank said. With this India will continue to retain the position of being the fastest growing emerging economy. And by 2021, its growth rate is projected to be 1.5 per cent more than China's 6 per cent. According to the World Bank, growth in India is projected at 7.5 per cent in Fiscal Year 2019/20 (April 1, 2019 to March 31, 2020), unchanged from the previous forecast, and to stay at this pace through the next two fiscal years. "Private consumption and investment will benefit from strengthening credit growth amid more accommodative monetary policy, with inflation having fallen below the Reserve Bank of India's target," it said. Support from delays in planned fiscal consolidation at the central level should partially offset the effects of political uncertainty around elections in FY2018/19, it said. The World Bank said that India's urban consumption was supported by a pickup in credit growth, whereas rural consumption was hindered by soft agricultural prices. On the production side, robust growth was broad-based, with a slight moderation in services and agricultural activity accompanied by an acceleration in the industrial sector. Weakening agricultural production reflected subdued harvest in major crops on the back of less rainfalls, it said. Services activity softened mainly due to slowing trade, hotel, transport, and communication activity. The industrial sector benefited from strong manufacturing and construction with solid demand for capital goods. The slowing momentum in economic activity in late 2018 carried into the first quarter of 2019, as suggested by softening services and manufacturing Purchasing Managers' Indexes, the report said. Observing that the new Goods and Services Tax regime is still in the process of being fully established, creating some uncertainty about the projections of government revenues, the report said fiscal deficits continue to exceed official targets in some countries -- India, Pakistan. Pakistan's growth, on the other hand, is expected to slow further to 2.7 per cent in FY2019/20, which begins July 16, as domestic demand remains depressed and as current account and fiscal deficits diminish only gradually.

World Bank pegs India's growth at 7.5% for next three years; China to grow slowly

World Bank has slashed its global growth rate forecast for the year 2019, despite revising global growth rate World Bank has not changed numbers for India. Watch this video to know more.

India unaffected by global slowdown

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