International Monetary Fund slashes global growth forecasts

Finance Minister Asad Umar says decision is taken after consulting leading economists

Finance Minister Asad Umar says decision is taken after consulting leading economists

It kept the 7.3 per cent growth projection for this year made in July. It added that downside risks detailed in the April WEO "have become more pronounced or have partially materialized" such as trade barriers and reversal of capital flows to emerging market economies with weaker fundamentals and higher political risk. This is still lower than the global economic growth of 3.7 percent.

Analysts say Pakistan needs a loan of around $12 billion to turn the corner, but a diplomat told AFP in August that Islamabad is betting on a loan of at least $6.5 billion to get it through the crisis.

Prime Minister Imran Khan, who came to power after July elections, is under pressure to generate external funding as the country faces the latest in a long line of financial blowouts.

"After exhausting all options to seek funding from all avenues, including from friendly countries, PM Imran Khan approved making a formal request to the International Monetary Fund for the provision of next bailout package from the International Monetary Fund", official sources said while talking to The News here on Monday night.

The Toronto Stock Exchange's S&P/TSX composite index was down 70.78 points, or 0.44 per cent, at 15,875.39.

"It's a positive rather than a negative thing for a country like Pakistan where you generally see targets not being met". For 2019 however, the country's 6.6 percent growth forecast tops most countries in ASEAN, closely followed by Vietnam with 6.5 percent while Indonesia is a distant third with 5.1 percent. The reserves had fallen to $8.4 billion last week, which were enough to cover only one and half month's imports bill.

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North Korea maintains a Catholic church in Pyongyang, the Jangchung Catholic Church , though it is not affiliated with the Holy See.

China, Islamabad's closest ally, has pledged about $60 billion in infrastructure spending in Pakistan as part of its Belt and Road initiative.

The currency's latest drop to between 130 to 136 per dollar, according to the people who asked not to be identified as they aren't authorized to speak publicly, comes after the International Monetary Fund repeatedly stated that the rupee was overvalued.

Maurice Obstfeld, the IMF's chief economist, said at a media briefing about the fund's latest World Economic Outlook: "When you have the world's two largest economies at odds, that's a situation where everyone suffers". At 0930 GMT, it was down about 7 percent.

He said the country is going through a tough time.

The Ministry of Finance and State Bank of Pakistan has not taken any measure to control the rupee depreciation and allowed the market to set the currency value. "Overall, market participants appear complacent about the risk of a sharp tightening in financial conditions". "Our probability that we would attach to further bad news has gone up", Obstfeld said.

Dollar-denominated bonds chalked up solid gains, with many issues adding around 1.5 cents, according to Tradeweb data - their biggest daily gain in several weeks.

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