Pakistan’s Finance Minister Seeks Support Amid Fiscal Gap; India Lauded for G20 Leadership
Pakistan’s Finance Minister Engages with IMF and World Bank Officials
Pakistan’s Finance Minister, Dr. Shamshad Akhtar, attended the Bretton Woods Institutions meetings in Morocco today, engaging with second-tier officials from the International Monetary Fund (IMF) and World Bank. Despite not securing one-on-one meetings with their respective leaders, Dr. Akhtar and the Pakistani delegation, which includes officials from the State Bank of Pakistan (SBP) and the World Bank, are determined to address a $4.5 billion financing gap for this fiscal year.
World Bank and AIIB to Provide Loans to Pakistan
The World Bank plans to provide over $2.1 billion in loans to Pakistan, including up to $1.6 billion in project loans and a $350 million budget support loan, according to World Bank Country Head Najy Benhassine. Additionally, the Asian Infrastructure Investment Bank (AIIB) has pledged a $250 million budget support loan to Pakistan.
Meetings with Prominent Financial Institutions
Dr. Akhtar’s agenda also includes meetings with representatives from Lazard, Standard Chartered Bank, and Deutsche Bank. Deutsche Bank, known for its strong financial performance and revenue growth, could potentially be a valuable partner for Pakistan in addressing its financing gap.
Engagements with Development Banks and Finance Ministers
In addition to the above meetings, Dr. Akhtar will also meet officials from the Islamic Development Bank, Asian Development Bank, and AIIB. Discussions with finance ministers of Saudi Arabia and Iran are also scheduled. These engagements aim to explore further avenues for financial support and collaboration.
India’s Successful G20 Presidency
Meanwhile, at the same summit, Indian Finance Minister Nirmala Sitharaman was praised by her French counterpart Bruno Le Maire for India’s successful G20 Presidency and the New Delhi Leaders Declaration. Sitharaman highlighted the importance of multilateralism through G20 in tackling global challenges such as the COVID-19 pandemic, escalating inflation, and recent conflicts. She also held discussions on Digital Public Infrastructure, development partnerships, trade, and investment with representatives from Comoros and Morocco.
Hungary’s Economic Strategies in Line with IMF’s Forecast
In other news from the IMF-World Bank Annual Meetings, Hungarian State Secretary for Macroeconomic and International Affairs, Tibor Toth, stated that the IMF’s latest forecast aligns with Hungary’s future economic strategies. The IMF projects Hungary to lead GDP growth among V4 countries in 2024, with a rate of 3.1 percent, surpassing the projected EU growth rate. Additionally, the IMF expects a decline in Hungary’s Consumer Price Index (CPI) to single digits this year, with an end-year projection above 8 percent and an average annual inflation of 6.6 percent in 2024.
This article provides valuable insights into the meetings attended by Pakistan’s Finance Minister and the support sought to address the country’s fiscal gap. It also highlights India’s successful G20 Presidency and Hungary’s alignment with IMF’s economic forecast. The engagements with various financial institutions and development banks demonstrate Pakistan’s efforts to secure financial assistance, while India’s leadership role in the G20 underscores its commitment to global cooperation. These developments are crucial in shaping the economic landscape of the region.
