Pakistan to seek International Monetary Fund bailout to overcome financial crisis

Pakistan       by Usman Arshad | Published

"As a result, estimates of 2017 public debt vary considerably: the official government debt figure is 37 per cent of GDP, while the data reported in the latest World Economic Outlook show it at 47 per cent of GDP, and the "augmented" debt measure, which includes more off budget borrowing by local governments, stands at 68 per cent of GDP", he said.

World Bank Group President Jim Yong Kim said fintech would be particularly helpful to low-income countries, where access to financial services is low.

"Of the many qualities of Jerome Powell is he's an individual who really understands the plumbing of the USA and the global financial system", Carney said. Asked about such concerns earlier on Thursday, Lagarde told a news conference that any International Monetary Fund loan, to Pakistan or other countries, requires "a complete understanding and absolute transparency about the nature, size, and terms of the debt that is bearing on a particular country". China was the fastest growing economy in 2017 as it was ahead of India by 0.2 percentage points.

The half-yearly Global Financial Stability Report released on Wednesday finds a 5 per cent probability that these emerging economies could see debt outflows of US$100 billion or more, representing 0.6 per cent of their combined GDP, over a period of four quarters.

Lagarde said she would meet Pakistani officials on Thursday, with expectations that Islamabad will request a bailout over a looming balance-of-payments crisis, with Prime Minister Imran Khan saying this week his country needs $10-12 billion.

It stated that global debt still increased by more than 50 percent thereafter with China accounting for almost 40 percent of the USA dollar value of the increase over the period.

While Nigeria will grow from 1.9 per cent in 2018 to 2.3 percent in 2019, South Africa and Angola were projected to move from 0.8 to 1.4 and -0.1 to 3.1 per cents respectively, the International Monetary Fund said yesterday. If tariffs were imposed to their most extreme limits there would be a "clear slowdown and the impact on the developing countries would be greater", he said.

"Growth performance varies, however, across countries".

"The government has chose to do both", he said while addressing a ceremony to launch Naya Pakistan Housing Programme, a flagship project of his government to build 5 million houses in five years for low income people. On Tuesday, the Pakistani rupee plunged 7 per cent in an apparent central bank devaluation, the country's fifth devaluation since December. But she added that the WTO does need to work on addressing issues like subsidies.

Finance Minister, Zainab Shamsuna Ahmed who is the leader of the Nigerian delegation to the Annual General Meeting is expected to be part of the meeting.

"While foreign investors play a critical role in financial deepening in emerging market economies, excessively high levels of participation may increase the sensitivity of emerging asset markets to external shocks", the report said.

Trump has led the escalating trade war because of what he believes are bad policies he said have created an $800 billion USA trade deficit.



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