Vision 2030 Progress Update And The Impact of Non-Oil Revenue Streams In Saudi Arabia
The Middle East Director for the IMF explains growth trajectory in the region and explores the economics beyond oil for the Kingdom. And we see why Jeddah is quickly becoming a tourist and economic hotspot – home to the Al-Balad old town and the upcoming Trump Tower.
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Asharq Al-Awsat
2 days ago
- Asharq Al-Awsat
IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook
The International Monetary Fund warned on Friday that risks related to trade tensions continue to cloud the global economic outlook and uncertainty remains high despite some increased trade and improved financial conditions. IMF First Deputy Managing Director Gita Gopinath said the fund would update its global forecast later in July given "front-loading ahead of tariff increases and some trade diversion," along with improved financial conditions and signs of continued declines in inflation. In April the IMF slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs on imports now at 100-year highs and warning that rising trade tensions would further slow growth. At the time, it cut its forecast for global growth by 0.5 percentage points to 2.8% for 2025, and by 0.3 percentage points to 3%. Economists expect a slight upward revision when the IMF releases an updated forecast in late July. According to Reuters, Gopinath told finance officials from the Group of 20 major economies who met this week in South Africa that trade tensions continued to complicate the economic outlook. "While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high," she said, in a text of her remarks. She urged countries to resolve trade tensions and implement policy changes to address underlying domestic imbalances, including scaling back fiscal outlays and putting debt on a sustainable path. Gopinath also underscored the need for monetary policy officials to carefully calibrate their decisions to specific circumstances in their countries, and stressed the need to protect central bank independence. This was a key theme in the G20 communique released by finance officials. Gopinath said capital flows to emerging markets and developing economies remained sluggish, but resilient, in the face of increased policy uncertainty and market volatility. For many borrowers, financing conditions remained tight. For countries with unsustainable debt, proactive moves were essential, Gopinath said, repeating the IMF's call for timely and efficient debt restructuring mechanisms. More work was needed on that issue, including allowing middle-income countries to access the G20's Common Framework for Debt Restructuring, she said.
Arab News
3 days ago
- Arab News
Pakistan sees $16 million in online animal sales during Eid — central bank
KARACHI: Pakistanis spent more than 4.7 billion rupees (approximately $16.3 million) on sacrificial animals through digital transactions during Eid-ul-Azha this year, the State Bank of Pakistan (SBP) said on Tuesday, highlighting a growing shift toward cashless commerce in one of the country's most traditional and informal markets. The digital sales were part of the central bank's 'Go Cashless in Cattle Markets Campaign 2025,' launched to promote financial inclusion and reduce cash handling during the three-day religious festival that began on June 7. The annual holiday, also known as Eid Al-Adha, marks the Islamic ritual of animal sacrifice, during which millions of Pakistanis buy goats, cows, and camels, often in large, informal marketplaces. The SBP said the campaign was implemented in collaboration with 24 commercial banks and covered 54 major cattle markets across the country. 'The campaign was successfully implemented in 54 major cattle markets across Pakistan, resulting in 64,553 transactions valued at Rs 4.656 billion,' the central bank said in a statement. Eid-related animal trade represents a significant part of Pakistan's informal economy. By introducing digital payment options in livestock markets, the central bank aims to improve financial transparency and support the government's broader goal of documenting the cash-based economy. Pakistan is currently under a $7 billion loan program with the International Monetary Fund (IMF), which encourages reforms including digitization of financial services to boost tax collection and economic stability. 'Digital payment systems play a vital role in modern economies by offering transparency, reducing fraud risks, and providing secure, convenient, and inclusive access to financial services,' the SBP said. It added that such initiatives were crucial for building trust and driving adoption of digital platforms, especially among underserved groups like livestock traders. The central bank said feedback from buyers and sellers in the cattle markets was positive, with participants appreciating the reduced reliance on physical cash. 'This campaign was highly appreciated by the buyers and sellers in the cattle markets, as it reduced their reliance on cash,' the bank noted. Najeeb Ahmed Warsi, head of online trading at Foundation Securities Ltd, called the initiative a meaningful step toward modernizing Pakistan's financial landscape. 'This campaign is more than just numbers, it's a clear step forward in Pakistan's journey toward a digitally-driven, cashless economy,' he said. 'By digitizing traditional markets, we're building trust, increasing financial inclusion, and setting the stage for a safer, smarter financial ecosystem.' Warsi noted that the partnership between 24 commercial banks and the central bank allowed the initiative to scale effectively across the country. 'This groundbreaking initiative earned widespread praise from both buyers and sellers, who welcomed the shift from cash to digital payments, and transparency during one of the busiest market seasons,' he added. The SBP said it would continue fostering collaborations across the financial sector to further Pakistan's transition to a digitally inclusive economy.
Arab News
4 days ago
- Arab News
IMF says Egypt makes mixed reform progress, cites state dominance of economy
CAIRO: Egypt's progress on structural reforms under an $8 billion International Monetary Fund loan agreement has been mixed, the fund said, citing the public sector's continued dominance of the economy as a problem. In its long-delayed staff report for the fourth review of Egypt's program, the IMF said there had been limited headway in reducing the role of state- and military-owned firms which enjoy preferential treatment in the form of tax exemptions, access to prime land and cheap labor. These companies remain largely shielded from public scrutiny, with 'very limited transparency about their financial condition,' the fund said. Egypt's reliance on a state-led growth model, centered on mega-projects and public investment, was curbing job creation and stifling the private sector in an increasingly volatile global environment, it said. 'The resulting financial and resource distortions have left Egypt with a large informal economy and few buffers against growing global financial, geopolitical and climate shocks,' the fund said. The report was published late Tuesday, four months after the board approved the review and unlocked a $1.2 billion disbursement. Total disbursements are around $3.5 billion. The 46-month facility was signed in March 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38 percent in September 2023. The fund said last week it would merge the fifth and sixth program reviews into one later this year to give Egypt more time to implement critical reforms. The fund forecast that Egypt's external debt would rise from $162.7 billion in 2024/25 to $202 billion by 2029/30. Public debt overall 'poses a high risk of sovereign stress,' it said, urging authorities to broaden the tax base, phase out untargeted subsidies and increase oversight of off-budget entities such as the state oil company EGPC and the urban development authority NUCA. The report also cited 'persistent and successive external shocks' that it said had 'complicated policy execution,' including the war in Sudan which has pushed hundreds of thousands to flee to Egypt, as well as trade disruptions in the Red Sea which reduced foreign exchange inflows from the Suez Canal by $6 billion last year. Egypt finance minister reacts Egypt's Finance Minister Ahmed Kouchouk said on Wednesday he is confident Egypt is hitting targets set by the IMF over the country's $8 billion loan programme and expects the next review to be completed by September or October. "Both sides, are working on the expectation that this should be happening in September, October," Kouchouk said on the sidelines of an event at the London Stock Exchange. "The IMF is after certain targets - and that's what's important." A successful agreement on a review and subsequent sign off by the Fund's executive board triggers payment of a tranche. Kouchouk also said he expected the government to complete three to four privatisation transactions before the end of the current financial year that started earlier this month. The IMF has made increasing the role of the private sector in the economy a requirement of an expanded $8 billion loan, and Egypt's cabinet said earlier this year it would offer stakes in military-owned companies through its sovereign wealth fund to help comply with the Fund's requirements. "It will be across a lot of sectors, but we have shared also a very strategic plan, a medium-term plan with the international institutions, including the IMF and others, with a very clear, visible timeline," added Kouchouk.
