IMF

In a significant step towards revitalizing its economy, Pakistan has wrapped up vital discussions with the IMF, centering on fiscal strategies and essential reforms. The dialogues emphasized changes in the energy sector, restructuring of state-owned enterprises, and efforts to draw in private investment.

The International Monetary Fund (IMF) has allocated $695 million to support Sri Lanka's recovery efforts following Cyclone Ditwah and the ongoing crises in West Asia. While the country faces significant challenges, its commitment to economic reforms demonstrates remarkable resilience. Unfortunately, the escalating conflict has intensified economic difficulties, with growth anticipated to decelerate.

India's foreign exchange reserves dropped by $7.511 billion to $681.384 billion in the week ending May 22, marking a second consecutive weekly decline. This decrease follows a significant fall in the previous week, with the reserves now under pressure due to the Middle East conflict and RBI's currency market interventions.

Pakistan plans to increase its defense budget by PKR 100 billion for the next fiscal year, reaching an estimated PKR 2.665 trillion. This move aligns with an IMF-backed reform program projecting a significant rise in federal revenues to PKR 17.144 trillion. The government is also committed to digitizing payments and tackling corruption across institutions.

India's economy has faced significant challenges from global oil price surges over the past fifty years. From the 1973 Arab embargo to the recent Hormuz disruption, these shocks have impacted inflation and foreign exchange reserves. Policymakers have continuously adapted strategies to manage these crises, balancing economic stability with consumer needs.

Acknowledging the impact of the West Asia crisis, the RBI has said that several factors will help India counter the negative effects and emerge strong.

Debt-laden Senegal has denied a report in the Financial Times that it covertly borrowed 650 million euros ($754 million) to avoid a default, saying it acted in line with "market transparency rules". But the Financial Times reported Monday that the new government had secretly "tapped 650 million euros from development lender Africa Finance Corporation and First Abu Dhabi Bank last year in borrowings that gave them privileges over existing bondholders".

For fuel, price hikes will do the job. For rupee, a hike in interest rates, one-time dollar bonds issue for NRIs & capital gains tax rejig will do the trick. Remember, our macros are just fine

Gold prices dropped to over a month's low as rising oil prices and Middle East tensions fueled investor anxiety, pushing them away from the safe-haven asset. Higher energy costs are also raising inflation concerns, increasing the likelihood of prolonged elevated interest rates from the US Federal Reserve.

A new book challenges India's growth narrative, highlighting a 'lost decade' of jobless growth. With millions of young Indians unemployed and a significant return to agriculture, the country faces a narrowing demographic dividend window. Experts warn of potential social conflict and a credibility crisis for the current economic model.

India's enduring love for gold spans centuries, evolving from tradition to modern investment. Women hold vast reserves, and the market is set for significant growth. Digital gold and ETFs are gaining traction alongside traditional jewellery. Gold remains a symbol of prosperity, security, and auspiciousness for Indians across generations.

India's foreign exchange reserves experienced a significant drop of $7.794 billion, reaching $690.693 billion in the week ending May 1. This decline, primarily driven by a fall in foreign currency assets and gold reserves, follows a previous decrease. The central bank's intervention in the forex market to support the rupee is a key factor behind this trend.

Pakistan admits its vulnerability to global oil shocks, lacking strategic reserves like India, which holds 60-70 days of stock. Islamabad's limited reserves leave it exposed, unlike India's stable prices aided by fiscal space and strategic stockpiles. Pakistan's IMF commitments restrict its ability to offer consumer relief amid soaring crude prices.

RBI is not alone in repatriating its gold reserves. Several central banks like France’s Banque de France, Germany’s Deutsche Bundesbank, Serbia’s National Bank have done the same - buy why?

As Indian-Americans excel and India’s economy expands, perceptions are being rewritten. Not everyone in the US is comfortable with that new reality.

For RBI the situation is clear: The resilience of the global economy, already inflicted with trade tensions, is being tested by the conflict in West Asia. The biggest takeaway from the RBI bulletin is that India’s domestic supply chains may come under risk from a prolonged war scenario, though strong macroeconomic fundamentals provide a buffer.

Anthropic's powerful AI model, Claude Mythos, capable of finding software vulnerabilities, has prompted a global financial sector scramble. Banks, regulators, and central bankers are urgently assessing risks and accelerating cybersecurity investments. Project Glasswing offers controlled access for defensive security work, highlighting the evolving threat landscape.

India’s economy is still expanding quickly, but the country is no longer fifth in the IMF’s latest global GDP rankings. A weaker rupee, dollar-based comparisons and a new GDP series help explain why the headline has changed without overturning the larger growth story

Pakistan aims to repay the remaining $1.5 billion loan to the UAE by April 23, following a $2 billion repayment. This comes as the country anticipates a $1.2 billion disbursement from the IMF after recent negotiations. Saudi Arabia has also extended a $3 billion deposit maturity, depositing $2 billion to bolster reserves.

India's foreign exchange reserves surged by $2.362 billion to $703.308 billion in the week ending April 17, following a previous gain of $3.825 billion. This increase, driven by rising foreign currency assets and gold reserves, marks a rebound after a decline caused by Middle East geopolitical tensions.