International Monetary Fund and Pakistan Officials Scheduled to Meet Today to Seek Bailout

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Thus, policymakers still have an excellent opportunity to build resilience and implement growth-enhancing reforms, the economic counsellor said.

"In several key economies, moreover, growth is being supported by policies that seem unsustainable over the long term", he said.

The IMF slashed China's growth rate to 6.6 per cent in 2018 and further down to 6.2 per cent in 2019, from 6.9 per cent in the previous year.

"But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan's State Bank that would help boost national reserves", he said, without offering details or taking any name on the matter.

Speaking to journalists in Bali, the Deputy Director, Research, IMF, Gian Maria Milesi-Ferretti, said the largest economies on the continent were holding down economic development in Africa as a result of poor growth rate.

But the U.S. tax cuts and rising spending that have boosted growth, helping compensate for the impact of the growing trade conflict, could spark a sudden "inflation surprise", and in turn lead to faster-than-expected rise in United States interest rates, according to the fund.

"The forecast does not incorporate the impact of further tariffs on Chinese and other imports threatened by the United States, but not yet implemented, due to uncertainty about their exact magnitude, timing, and potential retaliatory response", according to the International Monetary Fund.

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China's yuan currency has faced strong selling pressure this year, losing more than 8 per cent between March and August at the height of market worries, though it has since pared losses as the authorities stepped up support.

"Pakistan is suffering from a number of imbalances: A very large fiscal imbalance".

However, the International Monetary Fund has slashed its global growth forecast for this year and the next to 3.7 per cent owing to escalating trade disruptions between the United States and China.

The tariffs stem from the Trump administration's demands that China make sweeping changes to its intellectual property practices, rein in high-technology industrial subsidies, open its markets to more foreign competition and take steps to cut a $375 billion USA goods trade surplus.

The eurozone's 2018 growth forecast was cut to 2.0 per cent from 2.2 per cent previously, with Germany particularly hard hit by a drop in manufacturing orders and trade volumes. "This is not true in emerging and developing economies, where financial conditions have tightened markedly over the past six months", he said.

The country is going through a tough time, which has been left behind by the previous government, he said, adding: "We have to find a way to get out of this hard situation". "Any sharp reversal for emerging markets would pose a significant threat to advanced economies", said Obstfeld.

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