Risks to global financial system rise

For IMF Support Pakistan Might Have To Disclose Its China Debts

The Fed last raised rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of economic growth.

"Today, it was decided that we should start talks with IMF", Finance Minister Asad Umar told GEO TV in an interview on Monday night.

Around 32,000 members of the global financial elite are on the Indonesian holiday island for a week of discussions that have been clouded by U.S. President Donald Trump's America First trade policy.

An escalation in global trade tensions, together with rising geopolitical risks and policy uncertainty in major economies, could trigger a broad-based correction in global capital markets and cause a sharp tightening of global financial conditions, the International Monetary Fund (IMF) warned on Wednesday.

Lagarde said a trade war or currency war between the U.S. and China would affect both participants and a lot of innocent bystanders.

Also, the International Monetary Fund admits that though oil producing countries like Nigeria are going to benefit from higher prices, it sees signs of lower investment in manufacturing, coupled with weaker trade growth.

Adjustments would occur as domestic production displaces higher-priced imports, the model shows, but in the long run, the U.S. GDP would still be 1.0 percent below a baseline without these tariffs, while China's GDP output would be one half percent below the baseline.

Lagarde weighed into the currency debate on Thursday and appeared to side with China, saying that yuan weakness against the dollar was driven by the greenback's strength as the U.S. Federal Reserve hikes interest rates.

"Trade is very critical because that is what has lifted people out of extreme poverty", Kim said.

Soon after Khan's new administration took office in August, the government had explored all possible avenues of financing, including loans from friendly countries and Pakistani diaspora community for donations, said sources. -China trade war, coupled with threatened global US automotive tariffs and retaliation from trading partners.

"We know that risky behaviour and unsustainable debt is a recipe for financial crises".

Kim said the World Bank has launched a "human capital index" to help rank countries by the level of their investments in such areas as education and health care.

Managing Director Christine Lagarde on Thursday said that a bailout deal with Pakistan would require "absolute transparency" of its debts, many of which come from China's landmark Belt and Road Initiative. Concerns are growing, also, over slowing growth in China and rising debts among some developing countries resulting from projects associated with Beijing's "Belt and Road Initiative" to develop ports, roads and other infrastructure.

Finance Minister, Zainab Shamsuna Ahmed who is the leader of the Nigerian delegation to the Annual General Meeting is expected to be part of the meeting.

"We discussed important economic issues", Mnuchin said of their meeting on Twitter.



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