International Monetary Fund downgrades outlook for world economy to 3.7% growth

Daniel Fowler
October 11, 2018

In interbank, the dollar value increased to Rs134 as against Rs124.35 when the market closed on Monday.

Foreign investors warmed to the news on IMF's possible involvement.

Milesi Ferretti, Deputy Director Research said while presenting the report. Public debt would enhance by over Rs900 billion due to the recent rupee depreciation.

The risk of a global financial crisis initiated by sharp capital outflows in emerging markets due to the divergence of monetary policies in the United States and developing countries remains small but will grow as the Federal Reserve continues to raise its interest rates, as it is expected to do this year and next.

The State Bank of Pakistan (SBP) runs what is widely seen as a managed float, though its official stance is that the currency freely trades.

The IMF had recently termed the exchange rate as "overvalued".

"It's inevitable that central banks make the decisions that they make". The reserves dropped further to $43.52bn on Tuesday, October 9.

"The economy would stabilise once Pakistan would receive funds from the IMF", said a market analyst.

Over the last few months, the Chinese government has urged banks to lend more and called on local governments to speed up bond issuance to raise funds for infrastructure spending.

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In just the last few years RadioShack, Toys "R" Us and Sports Authority have all followed the path to the retailer graveyard. The company is also talking to lenders about providing it with debtor-in-possession financing, CNBC reported .

"The government has chose to do both", he said while addressing a ceremony to launch Naya Pakistan Housing Programme, a flagship project of his government to build 5 million houses in five years for low income people. Washington said on Friday it was considering waivers for nations that were reducing imports of Iranian oil.

He contended that China had "already retaliated" against his tariff increases.

Taxation measures will be adopted to reduce the fiscal deficit over and above the recently announced mini-budget.

"Trade deficits don't (necessarily) mean cheating by the other side..."

(Web Desk) - Since the time the government has given indication to go to International Monetary Bank, people (especially supporters of opposition parties) on social media have started trolling PTI.

After consulting with "leading economists", Pakistan will formally approach the International Monetary Fund for support and Finance Minister Asad Umar will hold talks with officials during the lender's annual meetings in Bali this week, the Finance Ministry said in a statement late Monday. A large current account imbalance. It has also loaned billions to Pakistan to help ease the pressure on the foreign currency reserves, which are used to defend the currency.

The IMF fears this could lead to sharp falls in markets.

This comes after the Government also revived upwards growth projection for this year, saying the economy is showing signs of recovery despite a number of challenges and risks.

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