IMF ACCORD
Pakistan has met all requirements for IMF bailout deal, finance official says
The South Asian country has set challenging revenue targets in its annual budget to help it win approval from the IMF for a loan to stave off another economic meltdown, even as domestic anger rises at new taxation measures.
Pakistan's National Assembly passes Rs 18,877 billion budget for fiscal 2024-25
The budget, facing opposition, sets growth targets and tax revenue goals while addressing concerns about IMF loans and tax exemptions to aid economic growth.
Sri Lanka reaches deal on debt restructuring with bilateral creditors including India, China and France
Sri Lankan President Ranil Wickremesinghe announced a debt restructuring deal with India, France, Japan, and China, a critical step in economic recovery after the 2022 debt default. Under an IMF bailout program, the agreement is expected to revive stalled foreign projects. Sri Lanka declared bankruptcy in 2022 due to economic mismanagement, COVID-19 impacts, and tax cuts. The deal defers loan payments until 2028 and extends repayment until 2043. Supporters celebrated the announcement in Colombo as it promises to restart crucial infrastructure projects.
India’s forex reserves dip $2.9 bn to come off all-time record high
India's foreign exchange reserves saw a notable decrease of $2.92 billion to reach $652.9 billion as of June 14, according to data from the Reserve Bank of India. This followed a significant increase of $24.3 billion in the previous week, pushing reserves to a record high of $655.8 billion as of June 7.
China will struggle to undo US dominance
The US economy is thriving with strong growth and investment, while China's influence is waning. The euro zone is also facing challenges.
Despite IMF scrutiny, Pakistan boosts defence spend by 16%
Pakistan has increased its defence budget by 16.4%, despite seeking a bailout deal from the IMF to prevent economic collapse. The latest allocation of $7.37 billion for fiscal year 2024-25 is a 16.4% increase from the previous year's $6.33 billion. Pakistan's armed forces heavily rely on imports, with China emerging as its biggest partner. The country is the world's fifth-largest arms importer, with 82% of its arms imports coming from China in 2019-2023.
Pakistan hikes defence budget by nearly 15 per cent in 2024-25
Pakistan announced a 15% increase in defence spending, reaching Rs 2,122 billion in the 2024-25 budget. Finance Minister Aurangzeb presented the budget in the National Assembly, the first under the PML-N and PPP coalition government.
Pakistan missed GDP growth target; achieves 2.38 % against envisaged 3.5 % in FY 2023-24: Economic Survey
The growth remained below the estimated target of 3.5 per cent for the outgoing year and the government failed to achieve it, mainly due to underperformance of industries and services sectors.
Japan's economy is shrinking, although slightly less than previously thought
Japan GDP growth: Revised government data shows Japan's economy shrank at an annual rate of 1.8%, an improvement from the initial estimate of 2.0%. Private sector investments were revised to minus 0.4%. Weak consumer spending, a depreciating yen, and a scandal involving improper vehicle tests at major automakers are among the challenges faced. The Bank of Japan's next move is closely watched.
Pakistan and IMF disagree over new income tax rates that will burden salaried class
Pakistan's talks with the IMF ended inconclusively over disagreements on new income tax rates for salaried and non-salaried individuals and the income tax threshold, as reported by the media.
Pakistani Prime Minister Sharif meets China's Xi in Beijing ahead of IMF talks
China's President Xi Jinping met Pakistani Prime Minister Shehbaz Sharif in Beijing, affirming China's support for Pakistan's sovereignty and economic development. The meeting occurred ahead of Pakistan's annual budget and anticipated IMF loan application. Pakistan's strategic location on the Arabian Sea is vital for China's trade routes. Pakistan owes China $27 billion, nearly 13% of its total debt, mainly for infrastructure projects. Xi emphasized the importance of the China-Pakistan Economic Corridor and called for enhanced security for Chinese projects, following a recent attack on Chinese engineers.
India’s forex reserves down $2 bn to come off all-time record high
India's forex reserves fell by $2 billion to $646.67 billion as of May 24, according to the Reserve Bank of India (RBI). This decline follows a previous increase of $4.54 billion, reaching an all-time high of $648.7 billion on May 17. The reduction includes a $1.51 billion decrease in foreign currency assets, a $482 million drop in gold reserves, a $33 million dip in SDRs, and a $1 million decline in IMF reserves.
India's growth outlook: Economy to get a blockbuster release this Friday? But that's too late to stream in poll campaigns
GDP Q4: As the country buzzes with election excitement, India is set to release its GDP growth numbers for the fourth quarter of FY24 this Friday, alongside the full fiscal year figures. Analysts are eagerly awaiting to see if the January to March quarter numbers surpass expectations, fueling hopes of a surprising uptick in growth.
India seen to emerge as an economic superpower in impending problem-ridden global financial landscape
Global recession risks have diminished, but inflation concerns threaten financial stability. The IMF, World Bank, and rating agencies forecast a slowdown in global growth, citing Middle East conflicts, financial stress, persistent inflation, and reduced international trade as key risks. The IMF's Global Debt Monitor reveals global debt at $235 trillion, or 238% of global GDP, raising fears of a debt crisis. Fiscal prudence may suffer as many nations face elections this year.
Private sector activity picks up to 61.7 in May, according to HSBC Flash PMI
The HSBC Flash India Composite Output Index rose to 61.7 in May compared with 61.5 in the previous month. “The latest data showed strength in new export orders for both sectors, which rose at the fastest pace since the series started in September 2014,” said Pranjul Bhandari, chief India economist, HSBC.
GDP likely expanded 6.8% in Q4; FY24 print may hit 7.8%
The strong March quarter print could lift overall gross domestic product (GDP) growth for the full fiscal year to 7.8% against 7.6% assessed in the government's first advance estimates released in February. The International Monetary Fund (IMF) has also forecast 7.8% growth for FY24. The government will release fourth-quarter growth numbers and provisional GDP data for FY24 on May 31.
IMF asks Pakistan to 'impose' tax on monthly pensions, says 'new bailout programme' will require reforms
The International Monetary Fund (IMF) has requested Pakistan to impose a tax on monthly pensions exceeding Rs 100,000 as part of a new bailout program. The IMF's demand is expected to gain legislative support to tax wealthy pensioners. Pakistan remains committed to the IMF loan program and must exercise fiscal discipline to qualify. The IMF also demanded an increase in general sales tax (GST) to 18% on commodities and services, and the end of GST exemption.
Amid IMF loan talks, cash-strapped Pakistan mulls 5-yr extension on $15.5 billion Chinese energy debt
Cash-strapped Pakistan is considering to seek a five-year extension on its $15.5 billion debt in the Chinese energy sector as talks with the IMF for a fresh loan continue. The consent of the Chinese government and Independent Power Producers is crucial for contract amendments, which may involve lengthy negotiations. The extension could lead to a reduction in tariffs for consumers and a rise in outstanding liabilities by $1.3 billion over five years, potentially easing financial burdens and stimulating economic growth.
Pakistan to privatise all SOEs, except strategic enterprises: PM Sharif
Asserting that the government's job is not to do business but to ensure a business and investment-friendly environment, Sharif directed all ministries to take action and cooperate with the Privatisation Commission.
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