Pakistan has been struggling to fix its economy for the last many years and it was close to default in 2023 but a timely loan of USD 3 billion by the IMF saved the situation.
Defence Minister Rajnath Singh said that Centre provided package to Jammu and Kashmir for development which was far more than what Pakistan sought from the International Monetary Fund (IMF). He also said that while India spends money in J-K for development, Pakistan misuses bailout money.
Denmark's Christian Kettel Thomsen and Switzerland's Thomas Jordan, Das was recognised for his effective management of inflation, economic growth, currency stability, and interest rates. This accolade highlights his successful monetary policies amidst global economic challenges.
International Monetary Fund's First Deputy Managing Director Gita Gopinath attended the Diamond Jubilee event at the Delhi School of Economics and said that India needs basic reforms, private investments, and revamping the education system.
The IMF has upgraded India's GDP growth forecast to 7% for the fiscal year 2024–25, citing anticipated improvements in rural consumption. Despite maintaining global growth projections at 3.2%, the IMF cautioned about risks including inflation and trade tensions, urging prudent monetary policies.
The verbal threat by President Asif Ali Zardari came after Pakistan's government said it would continue to seek IMF loans, which he opposed. His party leaders have also expressed unhappiness with the lack of cooperation from provincial and federal governments.
As per the World Economic Outlook report, India continues to be the fastest-growing economy of the world, ahead of China's growth projection of 4.6 per cent during the same period.
The comments by Sharif came a day after the IMF said it had agreed to a provisional or staff-level agreement with Islamabad which, if approved by its board, will disburse the last tranche of $1.1 billion under the $3 billion standby arrangement.
Pakistan's austerity measures aim to promote fiscal responsibility amid a severe economic crisis, causing them to seek a financial bailout from the IMF. The global moneylender reached a staff-level agreement with Pakistan to release the last tranche of the $3 billion bailout package.
Despite Pakistan showing improvement in some areas, the IMF predicted that the country's economic growth remains modest and inflation was above target. The IMF Executive Board had approved the $3 billion Stand-By Arrangement (SBA) for the cash-strapped Pakistan last year.
Pakistan's cash-strapped economy is struggling to stabilise from a financial crisis and secured a $3 billion standby arrangement from the International Monetary Fund last summer.
The Ministry of Energy officials said they have met the end-December targets related to containing the flow of circular debt below Pakistani Rs 385 billion, timely increase in the electricity prices, and slowing the increase in line losses.
"Our job is 98% done," Privatisation Minister Fawad Hasan Fawad said when asked about the plan to sell the airline. "The remaining 2% is just to bring it on an Excel sheet after the cabinet approves it."
The IMF chief said that some countries have successfully managed inflation and can afford accommodative monetary policies.
Artificial intelligence is likely to exacerbate overall inequality, and more productivity from high-income workers and companies would boost capital returns, widening the wealth gap, said IMF Managing Director Kristalina Georgieva.
The finance ministry said that any adverse global shock or extreme event is expected to uni-directionally impact all the economies in an interconnected and globalised world. A cross-country comparison shows that India has done relatively well.
Pakistan's caretaker Finance Minister Shamshad Akhtar outlined key aspects of the IMF agreement, affirming the government’s commitment to regular tariff adjustments, including a planned gas price hike in January to prevent the accumulation of circular debt in both the gas and power sectors.
International Monetary Fund raised India's GDP projection marginally by 0.2 per cent to 6.3 per cent even as it slashed the global growth forecast to 3 per cent. IMF in July had estimated India's GDP forecast at 6.1 per cent for 2023-24. India's growth is projected to be higher than China.
The IMF noted that there are potential risks to prices, primarily from food security concerns. Recent export restrictions in India, the world's largest rice exporter, and uncertain effects of El Nino are contributing to the upward tilt in risks.
In September, Pakistan experienced its first inflation increase in four months, driven by government-mandated fuel price hikes aligned with IMF conditions for a $3 billion bailout program.
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