Results for: IMF Bailout

Sri Lankans head to the polls on Saturday to elect a new president, facing a tight race between incumbent Ranil Wickremesinghe, main opposition leader Sajith Premadasa, and Marxist challenger Anura Kumara Dissanayake. The election comes amidst a fragile economic recovery following the country’s worst financial crisis in decades, with high cost of living and poverty remaining key concerns for voters. The winner will inherit the task of steering Sri Lanka through the IMF bailout program and navigating the country towards a stable economic future.

Sri Lanka is poised to hold its first presidential election since the 2022 economic meltdown, with incumbent Ranil Wickremesinghe vying for re-election. The election is a three-way contest, featuring Wickremesinghe, Anura Kumara Dissanayake, and Sajith Premadasa. Voters will head to the polls on September 21st, and the results will be declared the following day.

Sri Lanka is gearing up for its first presidential election since the devastating economic crisis that began in 2019. This election is not only a significant political event but also a pivotal moment for the country’s ongoing recovery and future stability. The election will determine whether the reforms implemented under the current administration, which has secured a $2.9 billion bailout from the IMF and a debt restructuring deal, will continue or if a new direction will be taken. The outcome will have significant implications for Sri Lanka’s economic trajectory and its ability to navigate its path forward amidst ongoing challenges.

Sri Lanka will hold a presidential election on September 21, a crucial contest that will determine the course of reforms in the nation grappling with its worst economic crisis in decades. Incumbent President Ranil Wickremesinghe is expected to run, facing challenges from opposition leaders Sajith Premadasa and Anura Kumara Dissanayake. The election comes as Sri Lanka navigates a fragile economic recovery, supported by an IMF bailout and debt restructuring efforts. However, the new government will need to maintain the reforms to ensure a lasting economic transformation.

Amidst Pakistan’s ongoing economic crisis, a prominent business leader has advised Prime Minister Shehbaz Sharif to reconsider relations with neighboring countries, particularly India. The suggestion was made during the premier’s visit to Karachi, with the business leader emphasizing the potential economic benefits of improved ties. Pakistan’s previous decision to downgrade relations with India in 2019 has been cited as a contributing factor to the country’s economic struggles, leading to an all-time high inflation rate and a reliance on the International Monetary Fund.

Amidst Pakistan’s dire economic situation, Finance Minister Muhammad Aurangzeb will approach parliament for approval to enhance the government’s tax revenue generation. He emphasized the need for structural reforms, as Pakistan’s tax-to-GDP ratio remains low at 9%. The government has formally requested an IMF bailout package ranging from $6 to $8 billion, with details to be finalized in May 2024. Despite facing a dwindling $3.4 billion in foreign exchange reserves when the current government took office, Pakistan has since increased its reserves to $8 billion and anticipates an additional $1.1 billion from the IMF. Inflation has also decreased to 20.7%, according to the State Bank of Pakistan, and is projected to decline further to 5-7%. The country’s GDP growth is estimated to reach 2.6% in FY2024, and foreign exchange reserves are expected to hit $10 billion by June.

Pakistan’s Finance Minister Muhammad Aurangzeb has predicted positive economic developments in the ongoing fiscal year, including increased foreign exchange reserves and improved fiscal performance. The government is focused on reforms in the energy sector and privatizing loss-making enterprises. Pakistan has requested an IMF bailout package of $6-8 billion and the IMF has agreed to consider a larger, longer program. External buffers have deteriorated, but the government is implementing measures to reduce fiscal and current account deficits.

Amid ongoing crises and under pressure to secure an IMF bailout, PML-N leader Rana Sanaullah has called for reconciliation with imprisoned former Prime Minister Imran Khan. Sanaullah urges Khan to engage in dialogue to steer the country out of economic and political turmoil. The PML-N’s offer follows the party’s success in recent by-polls, with Sanaullah claiming that Khan’s stubbornness deterred PTI voters from participating.