Pakistan Seeks Largest Ever Loan Package from IMF for Economic Bailout

Finance Minister Asad Umar speaks in a video message. — DawnNewsTV

Finance Minister Asad Umar speaks in a video message. — DawnNewsTV

In an statement, IMF Managing Director Christine Lagarde said she met on October 11 with Pakistani Finance Minister Asad Umar and the governor of the country's central bank, Tariq Bajwa, on the sidelines of a conference in Bali, Indonesia. In 2017, India had clocked a 6.7% growth rate.

Lagarde told reporters Thursday at the annual meeting of the International Monetary Fund and World Bank (WB) in Bali, Indonesia, that so far there had been no "contagion" of major damage from penalty tariffs imposed by the two countries on each other's exports, but that they do risk hurting "innocent bystanders".

The new forecasts show that a burst of strong growth, fueled partly by US tax cuts and rising demand for imports, was starting to wane.

The report also amplified worries about worldwide trade, echoing numerous earlier IMF statements, but noted that trade tensions have thus far affected individual sectors more directly than the financial system.

Lagarde urged countries to "de-escalate" trade frictions and fix global trading rules, rather than abandon them.

Following a sharp Wall Street sell-off on Wednesday, Trump said the Federal Reserve "is making a mistake". The IMF predicts the global economy will grow by 3.7 percent in 2018 and 2019 - a 0.2 percentage point downward revision from previous forecasts.

"It's tempting to be a bit depressed about this perspective but I'm actually hopeful because there is a clear appetite to improve and expand trade", she said.

After the global financial crisis, we see a role reversal, with fast increases in public debt.

The report applied a stress to the USA public sector assets, heavily concentrated in public pension funds, mortgages and student loans, finding that a scenario involving a severe recession, higher long-term interest rates and rapid falls in stock and real estate prices would shrink United States public net worth by an equivalent of 26 per cent of GDP by 2020. -China trade war, coupled with threatened global US automotive tariffs and retaliation from trading partners.

At its annual meeting in Bali it downgraded its prediction to 3.7% from 3.9% in July.

Kim said the World Bank has launched a "human capital index" to help rank countries by the level of their investments in such areas as education and health care. On Monday, the currency was trading at 128 per US dollar on the open market and 124.20 in the official interbank rate.

Pakistan began exploring the possibility of yet another loan package with the International Monetary Fund while the PML-N was still in power and the exploratory talks continued under the interim government as well. Concerns are growing, also, over slowing growth in China and rising debts among some developing countries resulting from projects associated with Beijing's "Belt and Road Initiative" to develop ports, roads and other infrastructure.

The annual summit for global finance brings together central bankers and finance ministers, development experts and civil society groups from across the globe.

Organizers said police intelligence personnel had infiltrated the event planning team as volunteers, subjecting them to intimidation and constant surveillance.

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