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The Print
01-07-2025
- Business
- The Print
Private capital crucial for sustainable development: FM Sitharaman
In an era of volatile FDI flows and mounting global uncertainty, she said private capital has emerged as an increasingly important source of development finance. Addressing the Leadership Summit of the International Business Forum at Sevilla, Spain, she said that private investment is a catalytic force, unlocking capital, boosting productivity, fostering innovation, and introducing technological rigour — all essential for inclusive, sustainable economic growth, according to an official statement. New Delhi, Jun 30 (PTI) Finance Minister Nirmala Sitharaman on Monday underlined the crucial role of private capital in driving sustainable development, saying it is both an urgent necessity and a significant opportunity. 'In recent years, we have witnessed encouraging growth in private investment, supported by the rise of innovative financial instruments alongside traditional sources. However, private capital mobilization remains significantly below what is required, with low- and middle-income countries receiving a disproportionately small share,' she said. This underscores the urgent need for targeted efforts to overcome investment barriers and better align financial flows with development priorities, she said. 'Mobilizing private capital is not merely a financing strategy — it is a development imperative. With coordinated action, thoughtful regulation, and shared ambition as reflected in Compromiso de Sevilla, we can ensure that private investment becomes a force for inclusive, sustainable, and resilient growth,' she said. Talking about key challenges for emerging economies, she said these include the high cost of capital, a shortage of bankable projects, regulatory and institutional constraints, limited local capacity, and high perceptions of risk – both country-specific and currency-related. Effective mobilization of private capital demands a multi-pronged strategy, combining robust domestic reform with strengthened international cooperation, she said. Pointing out seven strategic areas where transformation is both necessary and achievable, she said, strong domestic financial markets, addressing perceived risks through institutional reforms, creating scale in investment opportunities and scaling up of blended finance. Besides, she said Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) must assume a stronger enabling role for mobilization of private capital. Stressing that international credit rating methodologies must evolve to better reflect the structural strengths and long-term resilience of EMDEs, she said, current sovereign ratings often understate key fundamentals. Reforming rating methodologies would not only enhance fairness but also reduce financing costs and unlock far greater volumes of private investment, she added. Finally, she said, unlocking capital at the grassroots level requires support for MSMEs. 'These engines of inclusive growth need access to credit, technology, and capacity-building, along with simplified compliance frameworks. India's initiatives, ranging from credit guarantees and stress-period financing to E-Commerce Export Hubs, have improved MSME creditworthiness and global value chain integration,' she said. Sitharaman on Monday embarked on a three-nation official visit. She is leading an Indian delegation to Spain, Portugal and Brazil to attend a host of events, including the BRICS Finance Ministers and Central Bank Governors Meeting (FMCBG). PTI DP MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
30-06-2025
- Business
- Time of India
Private capital crucial for sustainable development: FM Nirmala Sitharaman
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Finance Minister Nirmala Sitharaman on Monday underlined the crucial role of private capital in driving sustainable development , saying it is both an urgent necessity and a significant the Leadership Summit of the International Business Forum at Sevilla, Spain, she said that private investment is a catalytic force, unlocking capital, boosting productivity, fostering innovation, and introducing technological rigour -- all essential for inclusive, sustainable economic growth, according to an official an era of volatile FDI flows and mounting global uncertainty, she said private capital has emerged as an increasingly important source of development finance."In recent years, we have witnessed encouraging growth in private investment, supported by the rise of innovative financial instruments alongside traditional sources. However, private capital mobilization remains significantly below what is required, with low- and middle-income countries receiving a disproportionately small share," she underscores the urgent need for targeted efforts to overcome investment barriers and better align financial flows with development priorities, she said."Mobilizing private capital is not merely a financing strategy -- it is a development imperative. With coordinated action, thoughtful regulation, and shared ambition as reflected in Compromiso de Sevilla, we can ensure that private investment becomes a force for inclusive, sustainable, and resilient growth," she about key challenges for emerging economies, she said these include the high cost of capital, a shortage of bankable projects, regulatory and institutional constraints, limited local capacity, and high perceptions of risk - both country-specific and mobilization of private capital demands a multi-pronged strategy, combining robust domestic reform with strengthened international cooperation, she out seven strategic areas where transformation is both necessary and achievable, she said, strong domestic financial markets, addressing perceived risks through institutional reforms, creating scale in investment opportunities and scaling up of blended she said Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) must assume a stronger enabling role for mobilization of private that international credit rating methodologies must evolve to better reflect the structural strengths and long-term resilience of EMDEs, she said, current sovereign ratings often understate key rating methodologies would not only enhance fairness but also reduce financing costs and unlock far greater volumes of private investment, she she said, unlocking capital at the grassroots level requires support for MSMEs "These engines of inclusive growth need access to credit, technology, and capacity-building, along with simplified compliance frameworks. India's initiatives, ranging from credit guarantees and stress-period financing to E-Commerce Export Hubs, have improved MSME creditworthiness and global value chain integration," she on Monday embarked on a three-nation official visit. She is leading an Indian delegation to Spain, Portugal and Brazil to attend a host of events, including the BRICS Finance Ministers and Central Bank Governors Meeting (FMCBG).
The Star
06-05-2025
- Business
- The Star
Ensuring economic resilience
KUALA LUMPUR: Exporters – especially small and medium enterprises (SMEs) – affected by the ongoing US tariff issue will receive support from the government, says Prime Minister Datuk Seri Anwar Ibrahim. 'The government is committed to assisting businesses affected by current global developments. 'As an initial step, we have announced an increase in Government Guarantees by RM1bil under the Business Financing Guarantee Scheme to help affected SME exporters obtain loans from commercial banks,' he said during the special Dewan Rakyat sitting yesterday held to discuss Malaysia's responses to US tariffs. The government has also agreed to increase soft loan facilities by Development Finance Institutions (DFIs) amounting to RM500mil to support affected SME entrepreneurs, he added. Anwar said Putrajaya will continue to monitor ongoing developments and remains committed to providing targeted assistance to directly affected SMEs. Other measures include promoting regional cooperation and new markets. 'With our major trading partners potentially colliding in a trade war, it is important for Malaysia to diversify its trading footprint to new markets in Europe, the Middle East, Central Asia, and South America, among others, as well as strengthen our intraregional trade, especially with Asean member countries.' Anwar was referring to increasing tariff tensions between China and the United States, which are Malaysia's largest and third largest trading partners respectively. To strengthen Asean integration and encourage economic activity between member countries, Malaysia – which is Asean Chair this year – will drive development projects across Asean, such as the Asean Power Grid, he added. Anwar said Malaysia will continue to strengthen economic activities with its Asean neighbours in border regions, such as the Johor-Singapore Special Economic Zone as well as development projects for the southern Thailand border area. The latter include constructing the second friendship bridge between Rantau Panjang in Kelantan and Sungai Golok in Narathiwat, Thailand, and a new road route connecting Customs facilities in Bukit Kayu Hitam, Kedah, with those in Sadao, Thailand. Negotiations are also ongoing to resolve the reciprocal tariff issue, which includes pursuing strategic purchases or imports from the United States. 'For example, the Malaysia Aviation Group (MAG) placed an order for 30 Boeing aircraft, with an option for 30 more, which was finalised last year and recently signed.' He said trade and investment processes would be further streamlined across key sectors such as agriculture, finance, and digital. 'For instance, a cloud framework agreement involving cloud service providers such as Google, Amazon, and Microsoft forms part of ongoing efforts to advance the public sector's digital agenda,' he said. Meanwhile, Malaysia is expanding trade in other markets. For instance, progress is being made in the free trade agreement (FTA) space, Anwar said. 'Following the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), Malaysia made its first tariff-free shipment of sustainable palm oil to the United Kingdom last week,' he said. The Malaysia-European Free Trade Association partnership agreement negotiations were completed in April and are expected to be signed next month. FTA negotiations are also resuming with South Korea and the European Union. In addition, efforts will also be intensified to strengthen relations at the Asean level with regions such as those represented by the Gulf Cooperation Council (GCC). Negotiations on enhancing the Asean-China FTA is also expected to be finalised. 'With the resilience and confidence shown by our domestic economy, we will not easily succumb to external pressures and challenges,' he added.
Express Tribune
01-03-2025
- Business
- Express Tribune
SBP announces bank holiday across country on March 3
Listen to article The State Bank of Pakistan has announced that Monday, March 3, 2025, will be observed as a bank holiday across the country. The closure coincides with the first day of Ramadan and is designated for Zakat deduction. According to an official notification, all banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs) will remain closed for public dealings on this date. However, bank employees are required to report to work as usual, as the day will be treated as a normal working day except for customer services. The central bank has advised customers to plan their transactions accordingly. Digital banking services, including ATMs and online banking, will remain operational during the holiday.
