Latest news with #Washington-headquartered
Yahoo
30-05-2025
- Business
- Yahoo
Trump tariffs effectively reinstated as President succeeds in court appeal
Appeals judges in the US have effectively reinstated Trump's import tariffs following a ruling by the US Court of International Trade on Wednesday (28 May) that the taxes were 'invalid'. After the trade court concluded the implementation of tariffs 'exceed any authority granted to the President', and therefore were 'invalid and cannot be implemented', Trump and is team immediately rallied against the order by filing an appeal with the Washington-headquartered US Court of Appeals for the Federal Circuit. That appeal for a stay of execution was granted yesterday (29 May). 'The request for an immediate administrative stay is granted to the extent that the judgments and the permanent injunctions entered by the Court of International Trade in these cases are temporarily stayed until further notice while this court considers the motions papers,' the Appeals court said in a statement. Plaintiffs were directed by the Court to respond to the stay order by 5 June and the US administration led by Trump by 9 June, and no later in both cases. New York State attorney general Laetitia James was part of the coalition of 11 other attorneys who sued the Trump administration over imposing the global tariffs using the International Emergency Economic Powers Act (IEEPA). The Appeals court indicated the US Court of International Trade has yet to respond to its decision, while Trump suggested on social media that the case may go before the US Supreme Court to make a final judgment. In yesterday's statement, the Appeals judges explained with respect to the ruling on Wednesday by the trade court. 'The United States moves to consolidate its appeals from those rulings and has applied for this court to stay the judgment and injunction pending these appeals and for an immediate administrative stay while the court considers that motion. The United States's request for the Court of International Trade to grant the same relief remains pending before that court.' Trump took to the social media platform Truth Social to vent his frustration, calling the ruling by the US Court of International Trade as 'so wrong, and so political'. The President added: 'Hopefully, the Supreme Court will reverse this horrible, country threatening decision, quickly and decisively. 'The horrific decision stated that I would have to get the approval of Congress for these tariffs. In other words, hundreds of politicians would sit around D.C. for weeks, and even months, trying to come to a conclusion as to what to charge other countries that are treating us unfairly. 'If allowed to stand, this would completely destroy Presidential power - the Presidency would never be the same.' New York State attorney general James had said on Wednesday that 'no president has the power to single-handedly raise taxes whenever they like' and outlined some of the potential impacts. 'These tariffs are a massive tax hike on working families and American businesses that would have led to more inflation, economic damage to businesses of all sizes, and job losses across the country if allowed to continue.' Navigate the shifting tariff landscape with real-time data and market-leading analysis. . "Trump tariffs effectively reinstated as President succeeds in court appeal" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Indian Express
18-05-2025
- Business
- Indian Express
IMF cites ‘enterprise risks' for Pakistan amid tensions with India; lists 11 new structural benchmarks to avail loan
As part of its nod for two loan tranches worth $2.4 billion on May 9 for Pakistan, the International Monetary Fund (IMF) has introduced 11 new structural benchmarks, including parliamentary approval of budget in line with the loan facility, publishing a governance action plan, and notifications of electricity tariff rebasing and gas tariff adjustments, to be met by the country before its next review of the Extended Fund Facility (EFF) in September. In a staff country report issued on May 17, the Fund has also cited increased 'enterprise risks' for Pakistan amid rising tensions with India, adding that there could be 'reputational risks' also if there is a 'perceived misuse' of Fund disbursement. 'Enterprise risks have increased. The rising tensions between India and Pakistan, if sustained or deteriorate further, could heighten enterprise risks to the fiscal, external and reform goals of the program. Reputational risks could also come from any perceived lack of evenhanded or if there was a perceived misuse of Fund disbursements,' the IMF said. The release of the IMF report came a day after India's Defence Minister Rajnath Singh had stated that in current times, any financial assistance to Pakistan is no less than terror funding. The Minister had specifically pointed out that the IMF should reconsider its financial assistance of $1 billion to the neighbouring country. The IMF is financing a $7-billion aid package to Islamabad that was approved in September 2024. The ongoing 37-month long EFF program of the IMF consists of six reviews over the span of the bailout. In its report released Saturday, the Fund said the Pakistani authorities have reiterated their strong commitment to the program, which is 'designed to help restore economic stability, build resilience through stronger reserve buffers, and advance reforms to create stronger and inclusive growth'. The Washington-headquartered multilateral agency sought to clarify that disbursements under the EFF are dedicated to build reserves, adding the facility's fiscal and reserve goals (including floors on social spending) limit the space for non-priority spending and the use of reserves to finance imports. 'Careful Fund communication will be essential to underscore the Fund's neutral role and avoid misperceptions about its lending activities,' the Fund said. Though the IMF's report includes a supplement incorporating updates on recent economic developments and the program performance, it stated that these recent developments do not alter the thrust of the staff appraisal. The recent updates included by the IMF have taken note of the significant rise in tensions between Pakistan and India after the April 22 attacks. 'So far, the market reaction has been modest with the stock market retaining most of its recent gains and spreads widening moderately,' it said. The 11 new structural benchmarks introduced by the Fund have been linked to fiscal, governance, social, monetary and financial parameters along with metrics to be met in energy sector and trade, investment policy and deregulation. As per the new norms, Pakistan will be required to ensure achievement of fiscal objectives such as parliamentary approval of FY26 budget in line with IMF staff agreement to meet program targets by end-June 2025. The country will also need to adopt legislation to remove the cap on the debt service surcharge by end-June 2025 and liberalise trade and increase vehicle affordability by through submission of all required legislation for lifting all quantitative restrictions on the commercial importation of used motor vehicles (initially only for vehicles less than five years old) to parliament by end-July 2025. Pakistan has also been asked to bring out notifications of the annual electricity tariff rebasing and gas tariff adjustments by July 1, 2025 to maintain energy tariffs at cost recovery levels. It will also have to adopt legislation to make captive power levy ordinance permanent by end-May 2025 to promote uptake of electricity grid usage and incentivise, the IMF said. Rest of the conditions have to be met with a deadline beyond September 2025 such as the condition to prepare a plan by end-December 2025 to fully phase out all incentives in relation to Special Technology Zones and other industrial parks and zones by 2035 to provide a level playing field for investment. The IMF has also asked the Pakistan government to prepare and publish a plan by end-June 2026 outlining the government's post-2027 financial sector strategy, outlining the institutional and regulatory environment from 2028 onwards. On May 9, the Executive Board of the IMF had completed the first review of Pakistan's economic reform program supported by the EFF arrangement, allowing for an immediate disbursement of around $1 billion, bringing total disbursements under the arrangement to about $2.1 billion. In addition, the IMF Executive Board had approved a tranche of $1.4 under the Resilience and Sustainability Facility (RSF). India had abstained from voting in the Board meeting as it raised concerns over the efficacy of IMF programs for Pakistan given its 'poor track record' and also on the possibility of 'misuse of debt financing funds for state-sponsored cross-border terrorism', as per an official release by the Ministry of Finance, Government of India on May 9. Before the meeting, India's Foreign Secretary Vikram Misri had said that the Fund's Board should look 'deep within' and take into account the facts before generously bailing out the country. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
Indian Express
03-05-2025
- Business
- Indian Express
6 months of tenure left, Govt recalls Subramanian from IMF board
Six months ahead of the end of his three-year term as the International Monetary Fund's Executive Director, Krishnamurthy V Subramanian has been called back to India by the government, sources have confirmed to The Indian Express. The government is looking for his replacement to be nominated to the IMF Board, sources said. The reasons for his exit have not been officially announced. Sources said Subramanian is learnt to have raised questions about IMF's datasets, which did not go down well in the corridors of the Washington-headquartered multilateral agency. Additionally, sources said, concerns were flagged over an 'alleged impropriety' relating to the promotion and publicity of his latest book India @ 100. Subramanian, who was earlier Chief Economic Adviser, was nominated as IMF's ED by the government in August 2022 for a three-year term beginning November 1, 2022. Queries sent to Subramanian, the IMF and the Ministry of Finance by The Indian Express on this issue did not elicit a response. In February 2025, Subramanian, along with his two senior advisors at the IMF, had termed the weighted approach to rating by the IMF staff as skewed, misleading and going against the spirit of 'transparency,' 'objectivity' and 'even-handedness.' As per the IMF's website, Subramanian's name appeared as IMF's ED till May 2. As of May 3, the IMF has now marked the position of ED for India, Bangladesh, Bhutan, and Sri Lanka as 'vacant'. Harishchandra Pahath Kumbure Gedara is listed as the Director Alternate for the South Asia region. On May 2, Subramanian was scheduled to speak at a conference titled 'Investing Opportunities in India' organised by DoorDarshi Advisors' in Omaha, Nebraska in the US. A day earlier, the organisers posted on X that Subramanian has had an exigency and won't be able to join the event. The premature exit of Subramanian from the IMF's ED post comes ahead of the crucial IMF Board meeting on May 9, which is to be held to review financing facilities extended to Pakistan. At the meeting, India is going to oppose funding to its neighbouring country for terror financing in the backdrop of the attack carried out in Pahalgam on April 22 that killed 26 tourists. Most Executive Directors have got an extended term at IMF earlier. Before Subramanian, economist Surjit Bhalla was selected by the government for the post of IMF ED in October 2019 for a three-year period. Bhalla joined the IMF Executive Board in November 2019 and was then re-elected in the next electoral cycle for the two-year period from November 1, 2020 to October 31, 2022. As per the IMF, the Executive Board is responsible for conducting the day-to-day business of the IMF. It is composed of 24 executive directors, who are elected by member-countries or by groups of countries, and the managing director, who serves as its chairman. The Board usually meets several times each week. All IMF member-countries are represented on its Executive Board, which discusses the national, regional, and global consequences of each member's economic policies and approves IMF financing to help member-countries address temporary balance of payments problems, as well as overseeing the IMF's capacity development efforts.
Hans India
24-04-2025
- Business
- Hans India
World Bank trims India's GDP growth to 6.3% in FY26
New Delhi: The World Bank on Wednesday lowered India's growth forecast for the current fiscal by 4 percentage points to 6.3 per cent amid global economic weakness and policy uncertainty. In its previous estimate, the World Bank had projected India's growth at 6.7 per cent for the fiscal year 2025-26. In India, growth in FY24/25 disappointed because of slower growth in private investment and public capital expenditures that did not meet government targets, the World Bank said in its twice-yearly regional outlook. 'In India, growth is expected to slow from 6.5 per cent in FY24/25 to 6.3 per cent as in FY25/26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty,' said its South Asia Development Update, Taxing Times. On Tuesday, the International Monetary Fund (IMF) also lowered India's GDP forecast for the current fiscal to 6.2 per cent from its January estimates of 6.5 per cent. The World Bank report said the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty. 'Private consumption is expected to benefit from tax cuts, and the improving implementation of public investment plans should boost government investment, but export demand will be constrained by shifts in trade policy and slowing global growth,' it said. It further said that amid increasing uncertainty in the global economy, South Asia's growth prospects have weakened, with projections downgraded in most countries in the region. Stepping up domestic revenue mobilisation could help the region strengthen fragile fiscal positions and increase resilience against future shocks, it said. The Washington-headquartered multilateral agency has projected regional growth to slow to 5.8 per cent in 2025, 0.4 percentage points below October projections before ticking up to 6.1 per cent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities, including constrained fiscal space.
NDTV
23-04-2025
- Business
- NDTV
World Bank Lowers India's Growth Forecast To 6.3 % For Fiscal Year 2025-26
New Delhi: The World Bank on Wednesday lowered India's growth forecast for the current fiscal by 4 percentage points to 6.3 per cent amid global economic weakness and policy uncertainty. In its previous estimate, the World Bank had projected India's growth at 6.7 per cent for the fiscal year 2025-26. In India, growth in FY24/25 disappointed because of slower growth in private investment and public capital expenditures that did not meet government targets, the World Bank said in its twice-yearly regional outlook. "In India, growth is expected to slow from 6.5 per cent in FY24/25 to 6.3 per cent as in FY25/26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty," said its South Asia Development Update, Taxing Times. On Tuesday, the International Monetary Fund (IMF) also lowered India's GDP forecast for the current fiscal to 6.2 per cent from its January estimates of 6.5 per cent. The World Bank report said the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty. "Private consumption is expected to benefit from tax cuts, and the improving implementation of public investment plans should boost government investment, but export demand will be constrained by shifts in trade policy and slowing global growth," it said. It further said that amid increasing uncertainty in the global economy, South Asia's growth prospects have weakened, with projections downgraded in most countries in the region. Stepping up domestic revenue mobilisation could help the region strengthen fragile fiscal positions and increase resilience against future shocks, it said. The Washington-headquartered multilateral agency has projected regional growth to slow to 5.8 per cent in 2025, 0.4 percentage points below October projections before ticking up to 6.1 per cent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities, including constrained fiscal space. "Although tax rates in South Asia are often above the average in developing economies, most tax revenues are lower. On average during 2019-23, government revenues in South Asia totalled 18 per cent of GDP, below the 24 per cent of GDP average for other developing economies," it said. Revenue shortfalls are particularly pronounced for consumption taxes but are also sizable for corporate and personal income taxes, the report said. In Bangladesh, the report said the growth is expected to slow in FY24/25 to 3.3 per cent amid political uncertainty and persistent financial challenges, and the growth rebound in FY25/26 has been downgraded to 4.9 per cent. For Pakistan, the World Bank said its economy continues to recover from a combination of natural disasters, external pressures, and inflation, and is expected to grow by 2.7 per cent in FY24/25 and 3.1 per cent in FY25/26. In Sri Lanka, the government has made further progress with debt restructuring, and a projected rebound in investment and external demand is expected to lift growth in 2025 to 3.5 per cent before it returns to 3.1 per cent in 2026.
