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looking beyond borders

foreign policy and global economy

Archive for the tag “IMF”

The IMF Should Take Over Libra

Humanity would have suffered had Facebook been allowed to use Libra to privatise the international payments system. But the authorities that are now strangling Libra should look to the future and do with it something innovative, useful, and visionary: hand Libra, or its core concept, over to the International Monetary Fund so that it can be used to reduce global trade imbalances and rebalance financial flows. Indeed, a Libra-like cryptocurrency could help the IMF fulfill its original purpose.

Read Here – Project Syndicate

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The Anatomy Of The Coming Recession

Unlike the 2008 global financial crisis, which was mostly a large negative aggregate demand shock, the next recession is likely to be caused by permanent negative supply shocks from the Sino-American trade and technology war. And trying to undo the damage through never-ending monetary and fiscal stimulus will not be an option.

Read Here – Project Syndicate

Pakistan: Bad Moon Rising

Pakistan’s Prime Minister Imran Khan is fond of using sporting clichés to explain complicated political dilemmas. “Bowling out the opposition” and forcing the “Umpire’s finger” are both regulars from his public speaking playbook. But as problems mount for Pakistan’s civilian leader, it’s getting harder to explain away reality with handy cricket metaphors. Cricket, after all, cannot be played in the rain—and Khan’s ship of state is about to run into some pretty bad weather.

Read Here – The American Interest

The Geoeconomics Of CPEC

Grappling with a crippling economic crisis at home, Pakistan is compelled to tread slowly and carefully in the emerging geoeconomics and politics of the region. Although financial help and support from China, Saudi Arabia and the UAE have contributed to partially resolving the country’s balance of payments crisis, yet an IMF bailout seems inevitable. Some would translate it as a return to old partners in the West — or the US to be more precise.

Read Here – Dawn

Saudi Crown Prince Oversees $20 bln Of Deals With Pakistan

Crown Prince Mohammed bin Salman told Pakistani Prime Minister Imran Khan to consider him the “ambassador of Pakistan” in Saudi Arabia moments after the two countries signed key memorandums of understanding (MoUs) worth $20 billion on Sunday in the fields of energy, petrochemicals, minerals, agriculture and food processing.

Read Here – Arab News

The Real Problem With The Saudi’s ‘Davos In The Desert’

It was always hard to see why a semi-medieval Middle Eastern autocracy reliant on a single fossil fuel was the best place to discuss any of those issues. And it is just as hard to believe the world will be worse off for not hearing what the IMF’s Christine Lagarde or J.P. Morgan’s Jamie Dimon think about them.

Read Here – The Spectator

What Is Saudi Arabia’s Grand Plan For Pakistan?

Pakistan’s new government has been in a mad dash to attract foreign aid and investment—most notably from Saudi Arabia—to offset a widening current account deficit, rising foreign debt repayment obligations, and avert a balance of payments crisis. Pakistan’s external financing needs will approach or exceed $30 billion this fiscal year.

Read Here – The National Interest

The US-China Cold War Is Now Playing Out In Pakistan

Are America and Pakistan finally breaking up? The short answer is no. As much as both states are fed up with each other, they remain far too co-dependent to simply walk away.  What we are seeing instead is a tough and protracted re-negotiation over the terms of the relationship. The question of Pakistan’s role in Afghanistan is not necessarily the hardest issue…The far bigger question… is what India and Pakistan’s role will be in the emerging cold war between the US and China.

Read Here – Defense One

Fixing Pakistan’s Financial Woes

In what has become somewhat of a ritual, Pakistan is back at the doorsteps of international creditors. The PML-N government has left national coffers empty, just like the PPP and the Musharraf-led PML-Q governments before it. Like clockwork, Pakistan goes to the IMF after every election: 2008, 2013 and now 2018. This time the request for financial assistance is expected to be the largest ever.

Read Here – Dawn

Pakistan’s Economic Turmoil Threatens China’s Ambitions

Some in Pakistan have speculated that China may oppose an IMF program out of concerns that it would compel China to release the financing terms of many CPEC projects. But outside of situations where external debt restructuring is required, it would be exceedingly unusual for the IMF to make such a demand. Instead, the IMF would likely require confidential data on debt payment schedules and other financial information necessary to understand Pakistan’s full balance of payments situation.

Read Here – Foreign Policy

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