ibusinesslines.com
ibusinesslines.com November 18, 2018


Pakistan’s currency plunges as it seeks International Monetary Fund loan

11 October 2018, 02:23 | Kelvin Horton

Pakistan’s currency plunges as it seeks International Monetary Fund loan

IMF should evaluate CPEC projects objectively while granting bailout package to Pakistan China

Pakistan has formally requested the International Monetary Fund for the financial assistance to help address country's economic challenges, Christine Lagarde, Managing Director IMF said in a statement Thursday. The acceleration relative to 2016-17 reflects a more supportive external environment, including stronger global growth, higher commodity prices, and improved capital market access, following efforts to improve fiscal balances in the aftermath of the commodity price slump.

The IMF expects that Russia's growth will reach 1.8 percent in 2019, according to the World Economic Outlook report released on Tuesday.

The US and China have been at loggerheads for months with the nations locked in a tit-for-tat trade conflict as they continue to slap hefty tariffs on each other.

The Breton Woods institution, which said this at the Annual General Meetings of the IMF/World Bank now going in Bali, Indonesia, also revised downwards growth prospects for Nigeria in 2018 from 2.1 per cent to 1.9 per cent.

The IMF predicted United Kingdom growth to would be 1.4% in 2018, rising to 1.5% in 2019, while the eurozone 2018 growth forecast was cut to 2.0% from 2.2%.

"In the United States, momentum is still strong as fiscal stimulus continues to increase, but the forecast for 2019 has been revised down due to recently announced trade measures, including the tariffs imposed on $200 billion of US imports from China", IMF report said. It had previously predicted jobless rates of 5.5% and 5.2% respectively.

It's the thirteenth time Pakistan has turned to the International Monetary Fund for support since the late 1980s and the lender said last week that recent government efforts haven't been sufficient to stem a looming crisis.

While defending rate hikes, Lagarde added Thursday that uncoordinated increases in advanced economies were contributing to destabilising capital outflows from emerging markets.


Brazil will see a 0.4 percentage-point drop in GDP growth to 1.4% for 2018 as a nationwide truckers strike paralysed much of the economy. The IMF has also revised down its forecast for Indonesia's growth.

The IMF also warns market investors, who have seen the largest upward bull run in stocks in history.

India hopes to secure a waiver from USA sanctions on Iran before they take effect on November 4, as it had significantly cut Iranian oil imports before the deadline, officials said on Monday...

"Where we are now is we've gotten some bad news".

"We will be listening very, very attentively when and if they come to us", said Obstfeld.

One of the International Monetary Fund (IMF)'s most detailed studies of the state of banking since the financial crisis reveals trade tensions are building and claims a "growing anxiety" around a breakdown in negotiations between Britain and the European Union could lead to financial uncertainty.

More tariffs and their countermeasures "could lead to a broader tightening of financial conditions, with negative implications for the global economy and financial stability", the fund warned.



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