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NDTV
a day ago
- Business
- NDTV
India Red-Flags $800 Million Asian Development Bank Aid Package To Pakistan
New Delhi: India has expressed deep concerns over the potential misuse of the $800 million ADB aid package to Pakistan as the country is increasing its defence expenditure, despite the poor fiscal position, with the army exercising de facto control over the government in Islamabad. The army top brass now leads the Special Investment Facilitation Council, which gives it more control over the economic policy. India has warned that this entrenched military role poses serious risks of policy reversal and poor reform implementation, according to reliable sources. Pakistan's tax-GDP ratio has been declining, with the country going through an economic crisis. The foreign exchange reserves have hit rock bottom, and inflation has soared to double-digit figures. However, despite the dire economic situation, the military-driven government has gone for increasing expenditure on defence. India has also pointed out that Pakistan has a very poor track record in implementing the economic reforms that are mandatory with these aid packages from multilateral institutions. India's concern is that these funds can be diverted for defence expenditure. The fighter jets purchased from China and the large number of drones used by Pakistan in the wake of Operation Sindoor reflect the increased spending on military hardware, an official said. It pointed out that Pakistan recently approached the International Monetary Fund (IMF) for the 24th bailout, indicating policy ineffectiveness. This further shows that the previous ADB and IMF-supported programmes have failed to create sustainable macroeconomic stability. India has also highlighted that Pakistan's policy of promoting cross-border terrorism has led to a worsening of the security situation in the region. It has further pointed out that Islamabad's track record on implementation of the FATF action points related to terrorist financing investigations and prosecution of leaders of UN-designated terrorist groups and freezing and confiscation of criminal assets is also highly unsatisfactory.
Hans India
a day ago
- Business
- Hans India
India red-flags $800 million ADB aid package to Pakistan
New Delhi: India has expressed deep concerns over the potential misuse of the $800 million ADB aid package to Pakistan as the country is increasing its defence expenditure, despite the poor fiscal position, with the army exercising de facto control over the government in Islamabad. The army top brass now leads the Special Investment Facilitation Council, which gives it more control over the economic policy. India has warned that this entrenched military role poses serious risks of policy reversal and poor reform implementation, according to reliable sources. Pakistan's tax-GDP ratio has been declining, with the country going through an economic crisis. The foreign exchange reserves have hit rock bottom, and inflation has soared to double-digit figures. However, despite the dire economic situation, the military-driven government has gone for increasing expenditure on defence. India has also pointed out that Pakistan has a very poor track record in implementing the economic reforms that are mandatory with these aid packages from multilateral institutions. India's concern is that these funds can be diverted for defence expenditure. The fighter jets purchased from China and the large number of drones used by Pakistan in the wake of Operation Sindoor reflect the increased spending on military hardware, an official said. It pointed out that Pakistan recently approached the International Monetary Fund (IMF) for the 24th bailout, indicating policy ineffectiveness. This further shows that the previous ADB and IMF-supported programmes have failed to create sustainable macroeconomic stability. India has also highlighted that Pakistan's policy of promoting cross-border terrorism has led to a worsening of the security situation in the region. It has further pointed out that Islamabad's track record on implementation of the FATF action points related to terrorist financing investigations and prosecution of leaders of UN-designated terrorist groups and freezing and confiscation of criminal assets is also highly unsatisfactory.
Nahar Net
21-05-2025
- Business
- Nahar Net
Ortagus has 'big plan' to get Lebanon out of economic crisis
by Naharnet Newsdesk 21 May 2025, 14:41 Deputy U.S. Envoy for the Middle East Morgan Ortagus has a plan to get Lebanon out of its economic crisis, the diplomat said at an Economic Forum in Qatar. "The International Monetary Fund is not the only choice," Ortagus said, adding that she has a big plan for Lebanon and a vision that allows Lebanon to become a country of investments and maybe then it would not even need the IMF loan. "If we can turn Lebanon into an investment country, we can use the investors' money and spare it further debt," she said, adding that "reforms are very important." In February the IMF said it was open to a new loan agreement with Lebanon following discussions with its recently-appointed finance minister. The previous caretaker administration did not enact reforms the IMF had demanded to implement a loan package to save the collapsed economy. The world lender "welcomed the authorities' request for a new IMF-supported program to bolster their efforts in addressing Lebanon's significant economic challenges", the IMF said in a statement. Lebanon's economic crisis has pushed most of the population below the poverty line, according to the United Nations. International donors including the IMF have called on the Lebanese authorities to implement major reforms, including restructuring the banking sector, in order to unlock funding. In April 2022, Lebanon and the IMF reached conditional agreement on a $3-billion-dollar loan package but painful reforms that the 46-month financing program would require have not been undertaken. Ortagus also called at the Qatar conference for the full disarmament of Hezbollah, "not just south of the Litani."
Business Recorder
14-05-2025
- Business
- Business Recorder
IMF cuts Angola's 2025 growth forecast to 2.4% on emerging risks
NAIROBI: The International Monetary Fund has cut Angola's preliminary growth outlook for 2025 to 2.4% from an initial 3%, it said after an assessment mission to Luanda, citing lower prices of oil and tightening external financing conditions. The Southern African oil exporter had to pay $200 million as extra security for a $1 billion loan from JPMorgan during the height of the selloff of risky assets last month, exposing the challenges faced by small, open African economies. 'This downward revision to the outlook also poses risks to fiscal performance,' the Fund said in a statement, adding that the findings will be discussed by its board in July. The team, was however, reassured by the government's determination to contain emerging risks, and to put in place mitigating measures, it said in a statement late on Tuesday. The IMF officials were on a mission known as Post Financing Assessment, which is reserved for nations with outstanding credit above their quotas that do not have an IMF-supported programme or a staff-monitored programme. IMF talks begin today The Fund sent a separate statement saying its head of Africa department, Abebe Aemro Selassie, had met with Angola's President Joao Lourenco in Luanda, to discuss the situation. 'I emphasised the IMF's readiness to continue supporting Angola's efforts,' the statement quoted Abebe as saying after the meeting.
See - Sada Elbalad
11-05-2025
- Business
- See - Sada Elbalad
Egypt Undergoes IMF Fifth Review Loan Program
Taarek Refaat Egypt is currently undergoing the fifth review of its International Monetary Fund (IMF) loan, a significant milestone in the implementation of the IMF-supported economic reform program, as part of its ongoing efforts to enhance economic stability and achieve sustainable growth. Through the review, the IMF assesses Egypt's commitment to implementing economic policies, in preparation for making critical decisions regarding new loan disbursements. At the same time, these reforms raise numerous questions about their social and economic impact, especially in light of the current challenges facing the country. The review addresses several issues, including the state's withdrawal from certain activities and the cessation of crowding out the private sector, allowing it to play a greater role in economic activity, thus alleviating the burden of government debt. The issue of exchange rate flexibility is also a constant topic in discussions between the Egyptian government and the IMF, along with tax and institutional reforms. The fifth review comes within the framework of the program signed with the IMF. The IMF approved the disbursement of the fourth tranche of the loan, valued at $1.2 billion, in early April, following the Board of Executive Directors' approval of the results of the fourth review of Egypt's economic reform program. The International Monetary Fund (IMF) sees two major problems threatening social stability in Egypt: inflation, which impacts the most vulnerable groups, and the lack of job opportunities, which impacts the middle class, Jihad Azour, Director of the IMF's Middle East and Central Asia Department, told Asharq Al-Awsat in early May. According to Azour, the IMF, through its program for Egypt, aims to raise growth levels, engage the private sector more actively in economic activity, and address the inflation problem. The IMF recently raised its forecast for real GDP growth in Egypt by 0.2 percentage points for the current and next years, while lowering its growth estimates for the Middle East and North Africa region as a whole for both years. The IMF also called on Egypt in early May to exercise caution in its approach to interest rate cuts, given the global uncertainty resulting from US President Donald Trump's recent decisions regarding tariffs. Egypt cut interest rates last month for the first time in nearly five years, after annual inflation fell to 13.6%, less than half of its peak in September 2023. In March 2024, the Central Bank of Egypt raised interest rates to a record low, coinciding with a more than 40% devaluation of the Egyptian pound. The rate remained unchanged until last month's 225 basis point cut to 25%. Egypt's domestic market saw foreign outflows of more than $1 billion in April, according to Goldman Sachs estimates, after Trump announced new tariffs, sparking global financial turmoil. The Egyptian pound hit record lows following the developments before paring some of its losses. Egypt is subject to the minimum US tariff rate of 10%. Despite the recent cut, the real interest rate—adjusted for inflation—remains among the highest globally, at around 11.5%. The Egyptian economy grew during the second quarter of the current fiscal year (2024/2025) at its fastest quarterly rate in more than two years, at 4.3%, supported by the manufacturing and tourism sectors, despite continued declines in Suez Canal revenues due to tensions in the Red Sea. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
