Latest news with #macroeconomicStability
Arab News
11 hours ago
- Business
- Arab News
Pakistan eyes UAE's digitalization model to boost public finance reforms
ISLAMABAD: Pakistan's State Minister for Finance Bilal Azhar Kayani met his UAE counterpart Mohamed Bin Hadi Al Hussaini on Wednesday, stressing the importance of learning from the Gulf country's digitalization model to promote e-commerce and macroeconomic stability, the Pakistan embassy in Abu Dhabi said. Kayani is leading a senior delegation of Pakistani officials who arrived in the UAE this week to participate in a two-day experience exchange program aimed at learning from the UAE's governance and public sector innovation models. The program, running from July 8–9, includes sessions with various UAE ministries and authorities and focuses on innovative approaches to public service delivery, competitiveness, and institutional reform. The initiative is in line with Islamabad's desire to modernize its public sector and strengthen economic cooperation with the Gulf nation. 'Minister Kayani also outlined Pakistan's reform agenda to modernize public sector finance and emphasized the importance of learning from the UAE's digitalization model,' the Pakistani embassy said about Kayani's meeting with Al Hussaini. Kayani expressed Pakistan's appreciation for the UAE's continued financial support, the statement said, recognizing it played a vital role in maintaining the country's economic stability. The two sides held discussions on key aspects of fiscal management, including budgeting practices, public finance oversight and tax policy reforms, the Pakistan embassy in Abu Dhabi said. 'Both ministers shared insights from their respective national experiences, identifying common challenges and opportunities to strengthen institutional capacity and improve governance frameworks,' it said. Kayani said Pakistan's reform agenda, spearheaded by Prime Minister Shehbaz Sharif, was focused on e-commerce, digitization and sustained macroeconomic stability. 'He emphasized that Pakistan remains committed to deepening structural reforms, ensuring fiscal responsibility, and promoting transparency and good governance as key pillars of long-term economic resilience,' the statement said. The two sides also reflected on the memorandum of understanding (MoU) signed between Pakistan's Planning Ministry and the UAE's Cabinet Affairs ministry on June 16, 2025. The MoU reinforces the shared commitment of both governments to modernize governance, build institutional capacity, and develop future-ready public administration systems. Islamabad considers UAE a vital economic ally as it is Pakistan's third-largest trading partner after China and the United States. The Gulf country is also home to over 1.8 million Pakistani expatriates and is the highest source of foreign remittances for Pakistan after Saudi Arabia.
Zawya
02-07-2025
- Business
- Zawya
International Monetary Fund (IMF) Staff Completes 2025 Article IV Mission with Nigeria
The Executive Board of the International Monetary Fund (IMF) concluded the Article IV Consultation with Nigeria.(1) The Nigerian authorities have implemented major reforms over the past two years which have improved macroeconomic stability and enhanced resilience. The authorities have removed costly fuel subsidies, stopped monetary financing of the fiscal deficit and improved the functioning of the foreign exchange market. Investor confidence has strengthened, helping Nigeria successfully tap the Eurobond market and leading to a resumption of portfolio inflows. At the same time, poverty and food insecurity have risen, and the government is now focused on raising growth. Growth accelerated to 3.4 percent in 2024, driven mainly by increased hydrocarbon output and vibrant services sector. Agriculture remained subdued, owing to security challenges and sliding productivity. Real GDP is expected to expand by 3.4 percent in 2025, supported by the new domestic refinery, higher oil production and robust services. Against a complex and uncertain external environment, medium-term growth is projected to hover around 3½ percent, supported by domestic reform gains. Gross and net international reserves increased in 2024, with a strong current account surplus and improved portfolio inflows. Reforms to the fx market and foreign exchange interventions have brought stability to the naira. Naira stabilization and improvements in food production brought inflation to 23.7 percent year-on-year in April 2025 from 31 percent annual average in 2024 in the backcasted rebased CPI index released by the Nigerian Bureau of Statistics. Inflation should decline further in the medium-term with continued tight macroeconomic policies and a projected easing of retail fuel prices. Fiscal performance improved in 2024. Revenues benefited from naira depreciation, enhanced revenue administration and higher grants, which more-than-offset rising interest and overheads spending. Downside risks have increased with heightened global uncertainty. A further decline in oil prices or increase in financing costs would adversely affect growth, fiscal and external positions, undermine financial stability and exacerbate exchange rate pressures. A deterioration of security could impact growth and food insecurity. Executive Board Assessment (2) Executive Directors agreed with the thrust of the staff appraisal. They commended the authorities on the successful implementation of significant reforms during the past two years and welcomed the associated gains in macroeconomic stability and resilience. As these gains have yet to benefit all Nigerians, and with heightened economic uncertainty and significant downside risks, Directors emphasized the importance of agile policy making to safeguard and enhance macroeconomic stability, creating enabling conditions to boost growth, and reducing poverty. Directors agreed that the Central Bank of Nigeria is appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched. They welcomed the discontinuation of deficit monetization and ongoing efforts to strengthen central bank governance to set the institutional foundation for inflation targeting. Directors also welcomed steps taken by the authorities to build reserves and support market confidence and praised reforms to the foreign exchange market that supported price discovery and liquidity. They called for implementation of a robust foreign exchange intervention framework focused on containing excess volatility, stressing that the exchange rate is an important shock absorber. Directors also agreed with staff's call to phase out existing capital flow management measures in a properly timed and sequenced manner. Directors called for a neutral fiscal stance to safeguard macroeconomic stabilization with priority given to investments that enhance growth. Directors also called for accelerating the delivery of cash transfers to assist the poor. They commended the authorities on advancing the tax reform bill, an important step towards enhancing revenue mobilization and creating fiscal space for development spending, while preserving debt sustainability. Directors recognized actions to strengthen the banking system, including the ongoing process of increasing banks' minimum capital. They welcomed the authorities' efforts to boost financial inclusion and promote capital market development, while emphasizing the importance of moving to a robust risk‑based supervision for mortgage and consumer lending schemes as well as the fintech and crypto sectors. Directors welcomed progress made in strengthening the AML/CFT framework and stressed the importance of resolving remaining weaknesses to exit the FATF grey list. To lift Nigeria's growth outlook, improve food security, and reduce fragility, Directors highlighted the importance of tackling security, red tape, agricultural productivity, infrastructure gaps, including boosting electricity supply, as well as improved health and education spending, and making the economy more resilient to climate events. They noted that addressing structural impediments to private credit extension is also needed to support growth. Directors welcomed the IMF's capacity development to support authorities' reform efforts and agreed that enhancing data quality is critical for sound, data‑driven policymaking. Table 1. Nigeria: Selected Economic and Financial Indicators, 2023–26 2023 2024 2025 2026 5/8/2025 13:03 Act. Est. Proj. Proj. National income and prices Annual percentage change (unless otherwise specified) Real GDP (at 2010 market prices) 2.9 3.4 3.4 3.2 Oil GDP -2.2 5.5 4.9 2.3 Non-oil GDP 3.2 3.3 3.3 3.3 Non-oil non-agriculture GDP 3.9 4.1 3.7 3.7 Production of crude oil (million barrels per day) 1.5 1.5 1.7 1.7 Nominal GDP at market prices (trillions of naira) 234 277 320 367 Nominal non-oil GDP (trillions of naira) 221 260 303 351 Nominal GDP per capita (US$) 1,597 806 836 887 GDP deflator 12.6 14.5 11.4 11.4 Consumer price index (annual average) 24.7 31.4 24.0 23.0 Consumer price index (end of period) 28.9 15.4 23.0 18.0 Investment and savings Percent of GDP Gross national savings 31.8 39.6 37.5 37.7 Public -0.1 3.9 2.2 1.7 Private 31.9 35.7 35.3 36.1 Investment 30.0 30.4 30.5 33.1 Public 3.2 4.8 5.4 5.5 Private 26.8 25.6 25.1 27.6 Consolidated government operations Percent of GDP Total revenues and grants 9.8 14.4 14.2 13.8 Of which: oil and gas revenue 3.3 4.1 5.1 4.9 Of which: non-oil revenue 5.8 9.2 8.8 8.8 Total expenditure and net lending 13.9 17.1 18.9 18.7 Overall balance -4.2 -2.6 -4.7 -4.9 Non-oil primary balance -4.9 -4.9 -7.2 -6.9 Public gross debt1 48.7 52.9 52.0 50.8 Of which: FX denominated debt 18.1 25.5 25.8 24.8 FGN interest payments (percent of FGN revenue) 83.8 41.1 47.3 49.2 Money and credit Contribution to broad money growth (unless otherwise specified) Broad money (percent change; end of period) 51.9 42.7 17.9 22.3 Net foreign assets 10.5 30.4 2.1 7.2 Net domestic assets 41.3 12.3 15.8 15.1 Of which: Claims on consolidated government 20.1 -11.9 6.2 4.1 Credit to the private sector (y/y, percent) 53.6 30.1 17.9 18.2 Velocity of broad money (ratio; end of period) 2.7 3.3 2.2 2.1 External sector Annual percentage change (unless otherwise specified) Current account balance (percent of GDP) 1.8 9.2 7.0 4.6 Exports of goods and services -12.8 -4.5 -6.0 1.3 Imports of goods and services -4.4 -0.8 -6.8 8.4 Terms of trade -6.1 -0.6 -7.4 -3.3 Price of Nigerian oil (US$ per barrel) 82.3 79.9 67.7 63.3 External debt outstanding (US$ billions)2 102.9 102.2 105.9 110.2 Gross international reserves (US$ billions, CBN definition)3 33.2 40.2 36.4 39.1 Equivalent months of prospective imports of G&S 5.4 5.7 7.5 7.7 Memorandum items: Implicit fuel subsidy (percent of GDP) 0.8 2.1 0.0 0.0 Sources: Nigerian authorities; and IMF staff estimates and projections. 1 Gross debt figures for the Federal Government and the public sector include overdrafts from the Central Bank of Nigeria (CBN). 2 Includes both public and private sector. 3 Based on the IMF definition, the gross international reserves were US$8 billion lower in December 2024. (1) Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. Staff hold separate annual discussions with the regional institutions responsible for common policies in four currency unions—the Euro Area, the Eastern Caribbean Currency Union, the Central African Economic and Monetary Union, and the West African Economic and Monetary Union. For each of the currency unions, staff teams visit the regional institutions responsible for common policies in the currency union, collects economic and financial information, and discusses with officials the currency union's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis of discussion by the Executive Board. Both staff's discussions with the regional institutions and the Board discussion of the annual staff report will be considered an integral part of the Article IV consultation with each member. (2) At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions. Distributed by APO Group on behalf of International Monetary Fund (IMF).
Bloomberg
13-06-2025
- Business
- Bloomberg
Colombia Activates ‘Escape Clause' to Rule That Curbed Debt
Colombia activated an 'escape clause' to suspend borrowing limits and allow the government to run higher fiscal deficits. During his presentation of the nation's fiscal plan, Finance Minister German Avila told reporters that not to have taken this move would have endangered macroeconomic stability.
Arab News
01-06-2025
- Business
- Arab News
Pakistan reaffirms commitment to macroeconomic stability as Ipsos survey shows rising consumer trust
KARACHI: Pakistan on Sunday reaffirmed its commitment to macroeconomic stability after Ipsos, a Paris-based global market research and consultation firm, said consumer confidence grew in the South Asian country in the second quarter of this year. The Ipsos survey revealed a significant surge in consumer confidence, with 42% of Pakistanis now believing the country is heading in the right direction — the highest level recorded in six years. Perceptions of the economy being strong reached their most favorable levels since August 2019, and optimism overtook pessimism that marked a key psychological shift among the population, according to the survey. Pakistan's Finance Minister Muhammad Aurangzeb said the 'encouraging' data reflected the success of his government's disciplined and targeted macroeconomic strategy implemented over the last 14 months. 'He highlighted that consumer confidence in making major purchases and investments has doubled compared to the same period last year, indicating that households are beginning to feel more secure in their financial prospects. Similarly, confidence in job security is now at its highest since 2019, a sign that labor market conditions are gradually stabilizing in response to pro-growth policies and reforms,' the finance ministry said. 'Senator Aurangzeb reaffirmed that the government remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.' The development comes amid stabilization of key economic indicators, including inflation, exchange rate, foreign exchange reserves and fiscal discipline, that has led a renewed public trust in Pakistan, which is currently on path to economic recovery under a $7 billion International Monetary Fund (IMF) program secured in Sept. last year. Aurangzeb pointed out that this upswing in consumer confidence spans across urban and rural areas, and is particularly evident among youth and women, demonstrating the broad-based nature of the economic turnaround. He linked this optimism to sustained government efforts to create an enabling environment to enhance private sector growth, exports, social protection and financial inclusion. 'The findings of the IPSOS survey are a timely validation of Pakistan's economic direction and a clear signal that the country is on a steady path toward recovery and resilience,' the minister said.
Zawya
28-05-2025
- Business
- Zawya
IMF, Egypt make progress on 5th review talks under EFF
An International Monetary Fund (IMF) staff mission concluded its visit to Cairo, which took place from May 6th to 18th, after holding constructive discussions with Egyptian authorities on the country's economic and financial policies under the Extended Fund Facility (EFF) arrangement, the IMF announced. Led by IMF Chief Mission Vladkova Hollar, the visit yielded 'good progress' toward assessing Egypt's economic performance and the implementation of its policy commitments. However, talks will continue virtually to finalize the remaining policy elements required for the completion of the fifth review. 'Egypt has made substantial progress toward macroeconomic stability,' Hollar said in a statement following the mission. She noted that growth is expected to strengthen further, with the IMF raising its forecast for fiscal year (FY) 2024/2025 to 3.8%, reflecting stronger-than-expected performance in the first half (H1) of the year. The IMF welcomed Egypt's fiscal discipline, especially the improved oversight of large public infrastructure projects, which has helped keep total public investment spending within limits set for July to December 2024. Hollar praised the government's recent reforms to modernize tax and customs procedures, noting that they are starting to yield positive results. She emphasized the importance of further revenue mobilization through broadening the tax base and streamlining exemptions to enable greater spending on development and social priorities. The fund also commended Egypt's work on a medium-term debt management strategy aimed at improving fiscal transparency and easing the burden of debt service. With macroeconomic stabilization taking hold, the IMF stressed the need for deeper structural reforms. The IMF also underlined the importance of improving the business environment to support long-term resilience and job creation. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
