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The Print
30-05-2025
- Business
- The Print
Forex reserves jump USD 6.992 bln to USD 692.721 bln
For the week ended May 23, foreign currency assets, a major component of the reserves, increased by USD 4.516 million to USD 586.167 billion, the data released on Friday showed. In the previous reporting week ended May 16, the overall reserves had dropped by USD 4.888 billion to USD 685.729 billion. The forex reserves had touched an all-time high of USD 704.885 billion in end-September 2024. Mumbai, May 30 (PTI) India's forex reserves jumped by USD 6.992 billion to USD 692.721 billion during the week ended May 23, the RBI said on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The gold reserves increased by USD 2.366 billion to USD 83.582 billion during the week, the RBI said. The Special Drawing Rights (SDRs) rose by USD 81 million to USD 18.571 billion, the apex bank said. India's reserve position with the IMF was also up by USD 30 million at USD 4.401 billion in the reporting week, the apex bank data showed. PTI AA SHW This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Print
23-05-2025
- Business
- The Print
India's forex kitty drops USD 4.88 bn to USD 685.72 bn
For the week ended May 16, foreign currency assets, a major component of the reserves, increased by USD 279 million to USD 581.652 billion, the data released on Friday showed. The overall reserves jumped by USD 4.553 billion to USD 690.617 billion in the previous reporting week. The forex reserves touched an all-time high of USD 704.885 billion in September 2024. Mumbai, May 23 (PTI) India's forex reserves dropped USD 4.888 billion to USD 685.729 billion for the week ended May 16, the Reserve Bank of India said on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. After the sharp USD 4.52 billion jump in the previous reporting week, the gold reserves dropped by USD 5.121 billion to USD 81.217 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by USD 43 million to USD 18.49 billion, the apex bank said. India's reserve position with the IMF was also down by USD 3 million at USD 4.371 billion in the reporting week, the apex bank data showed. PTI AA BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Mint
16-05-2025
- Business
- Mint
IMF approves bailouts for Pakistan, Bangladesh: When is it provided to a country and what are the lending conditions?
IMF bailout: Despite strong reservations from India, the International Monetary Fund (IMF) last week approved the immediate disbursement of about $1 billion to Pakistan as part of a bailout package. After Pakistan, Bangladesh recently got the IMF's green light for receiving $1.3 billion in bailout funds, to be disbursed in multiple tranches. A bailout generally refers to financial support extended to an entity at risk of bankruptcy. Countries typically turn to the IMF when they face severe macroeconomic challenges, such as currency crises, mounting external debt, or dwindling foreign reserves. When a country borrows from the IMF, it commits to implementing specific policy reforms aimed at addressing the underlying economic issues that triggered the need for assistance. As per the IMF website, these policy adjustments are conditions for IMF loans and help ensure the country adopts strong and effective policies. The IMF provides financial support through Special Drawing Rights (SDRs), an international reserve asset based on a basket of five major currencies: US dollar, Euro, Chinese Yuan, Japanese Yen, and British Pound. This support can take the form of loans, cash disbursements, bond purchases, or equity investments. Among the conditions laid down for a country seeking financial assistance from the IMF could be certain structural reforms, such as fiscal transparency, tax reforms and reforms in state-owned enterprises. While the IMF's governing conditions for releasing the bailout package are uniform for all countries, what sets Bangladesh and Pakistan's bailout apart are the tranches across which the package has been approved Bangladesh Pakistan Bail out package - $4.7 billion Bail out package - $ 7 billion Spread across ECF, EFF, RSF Bail out as EFF In June, the IMF is set to release $1.3 billion to Bangladesh following the fourth review of its $4.7 billion loan programme. As of May 2025, Bangladesh has received $2.3 billion bailout across three tranches – ECF, EFF and RSF. Extended Credit Facility (ECF): Provides concessional financial assistance to countries with protracted balance of payments problems. Extended Fund Facility (EFF): Aims to assist countries facing serious medium-term balance of payments issues due to structural weaknesses. Resilience and Sustainability Facility (RSF): Supports countries in addressing long-term structural challenges, including climate change. The June disbursement is contingent upon Bangladesh implementing reforms such as adopting a market-based exchange rate and restructuring its revenue administration. Pakistan's engagement with the IMF includes: Extended Fund Facility (EFF): In September 2024, the IMF approved a 37-month EFF totaling about $7 billion to support Pakistan's medium-term economic stabilisation efforts. Contrary to the Stand-By Arrangement (SBA) included in Pakistan's 2023 IMF bailout, the EFF focuses on structural reforms, including broadening the tax base, reducing subsidies, and enhancing fiscal discipline.
Hans India
14-05-2025
- Business
- Hans India
Pakistan receives second tranche of IMF funding, to begin budget discussions virtually
Islamabad: Pakistan is scheduled to start virtual discussions with the International Monetary Fund (IMF) on the country's upcoming fiscal budget after the visit of the IMF mission was delayed due to security reasons amid the ongoing tensions between India and Pakistan which have affected flight operations nationwide. Sources said that the IMF virtual talks holds pivotal value as the country's government will present Pakistan's proposed budget details to the newly-elected IMF mission chief to Pakistan. "We still hope that the new mission chief would be able to travel to Islamabad over the weekend, which is subject to security situation. However, the adjustment to have the discussion virtually would not affect the work or the original programme schedule," said one official. Details revealed that the first round of the virtual discussions will start on Wednesday and continue for at least three days. "Discussions are expected to be held virtually for the first leg. For the second leg of the talks, the IMF team is expected to arrive in Islamabad on Saturday and stay till May 23," a source said. The IMF discussion on the fiscal budget are happening at a time when Pakistan received its second tranche of funding from the IMF under the Extended Funding Facility (EFF). Pakistan's State Bank confirmed that it has received Special Drawing Rights (SDR) Rs 760 million ($1.023 billion) as part of the second tranche under the IMF EFF programme, adding that the latest disbursement will be recorded in the country's foreign exchange reserves. The latest disbursement of IMF's second tranche to Pakistan follows an approval from the IMF Executive Board on May 9. The IMF also cleared a $1.4 billion funding arrangement under the Resilience and Sustainability Facility (RSF) to support Pakistan's climate resilience initiatives during the meeting. IMF has appointed a new mission chief for Pakistan, Iva Petrova, who is expected to lead the discussions along with the outgoing IMF mission chief Nathan Porter who carried the reputation of being strict on policy issues and kept a hawk eye on Pakistan finance ministry's media policy. 'Pakistan will unveil the budget for fiscal year 2025-26 on June 2, making it the second budget presentation of the sitting finance minister Muhammad Aurangzeb. The factors of the budget have to be in line with the parameters set during the current meetings with the IMF," said a government source, highlighting the critical importance of the IMF budget discussions. Experts say that the fiscal budget for the year 2025-26 is expected to be another tough one for the government and the people at large. 'Pakistan is expected to formulate the budget on the assumption of having 1.6 per cent of the country's GDP primary budget surplus. This would require the government to generate at least Rs two trillion over and above the non-interest expenses," said economic expert Shahbaz Rana. "Tax target for the Federal Board of Revenue (FBR) is proposed to be at least 11 per cent of the GDP. IMF will review if the Pakistan government is setting credible and realistic targets and measures to back its new tax targets," he added. The defence budget is also expected to be increased, while the overall budget to be presented hovers around Rs 18 trillion. "The overall budget deficit target after incorporating large provincial cash surpluses is projected at 5.1 per cent of the GDP or Rs 6.7 trillion," said Rana. On the other hand, the IMF has already set multiple pre-conditions, which Pakistan said it has fulfilled despite initial setbacks. "Pakistan has met the IMF targets for a primary budget surplus by the federal government, as well as net revenue collection and cash surplus targets by the four provinces. This is why the talks with the IMF on the upcoming fiscal budget may not be as tough," Rana said. "However, the Federal Board of Revenue (FBR) has miserably failed in multiple domains on its enforcement measures in areas including track and trace, compliance risk management and retailers scheme, and has failed in its tax collection drive', Rana added. Pakistan is hopeful that its past performance and the recent release of the second tranche of IMF, would justify its compliance to the IMF conditions, paving the way to a successful discussion before the fiscal budget in June 2025.
Business Times
08-05-2025
- Business
- Business Times
Bessent working on clear rules for US investment in China
[WASHINGTON] Treasury Secretary Scott Bessent said he's working with US legislators on outbound investment rules for China that would make clear what's allowed and what's not. 'We talked about the importance of establishing a either red light or green light, and not having a yellow zone, for outbound investment,' Bessent said on Wednesday (May 7), referring to a discussion with two House representatives. 'The outbound investment security programme is an important national security tool in our effort to restrict the PRC from exploiting the benefits of US investment,' he said, referring to the People's Republic of China. Bessent was answering questions at a House Financial Services Committee hearing. The topic of potential restrictions on American capital heading to China also came up in a separate House hearing Tuesday, when the Treasury chief advised that congressional legislation should leave flexibility in implementation, allowing the rules to be 'durable'. He also said the issue is 'nuanced'. The Trump administration is already working on beefing up guidance on outbound investment established by the Biden administration. 'We are trying to ensure that the investment community is aware and familiar with the programme,' Bessent said on Wednesday. 'We appreciate the interest from Congress. And while legislation will be important and helpful, we would like a bit more time' to inform any bill, he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up New tool While the Committee on Foreign Investment in the US, or CFIUS, has long had the ability to investigate, and nix, foreign interests from acquiring American assets, in recent years there have been calls in Washington to restrict outbound flows for some purposes. 'It is a new national security tool that we restrict the PRC from exploiting the benefits' of American money, Bessent said. The Treasury secretary was also asked about proposed legislation to put conditions on allowing China's yuan to make up a larger weight of the basket of currencies used to set the value of the International Monetary Fund's so-called Special Drawing Rights. The fund in 2015 approved the yuan to join that basket, offering it newfound status as a global reserve currency. 'I look forward to working with Congress on this issue on whether additional legislation is needed to address the Chinese practices – or whether it could be done through trade negotiations,' Bessent said. BLOOMBERG
