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ISLAMABAD: The International Monetary Fund (IMF) has said that Pakistan remains under an Extended Fund Facility (EFF) arrangement and that an IMF staff team is expected to visit the country starting Feb. 25. Speaking at a press briefing in Washington on Thursday,&nbsp;<a href="https://www.pakistantv.com/article/foreign-investors-return-to-pakistan-as-sovereign-bond-inflows-surge" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">IMF</a>&nbsp;Communications Director Julie Kozack said the visit will be for discussions on the Third Review under the&nbsp;<a href="https://www.pakistantv.com/article/fitch-reaffirms-pakistans-b-credit-rating-removes-review-status" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">EFF</a>and the Second Review under the Resilience and Sustainability Facility (RSF).<div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-2" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 667px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-2&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=2024536716728832035&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=b20dfaf377288055659d21dac844e09f45427c2a&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px"></iframe></div></div>Kozack said Pakistan&rsquo;s policy efforts under the EFF have helped stabilize the economy and rebuild confidence. She said fiscal performance has been strong, noting that Pakistan currently has a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, which is in line with program targets. Headline inflation has been relatively contained, she added. Kozack also said Pakistan posted its first current account surplus in 14 years in fiscal year 2025. She further noted that the Governance and Corruption Diagnostic Report was recently published and includes proposals for reforms, including simplifying tax policy design, leveling the playing field for public procurement, and improving asset declaration transparency.

Woman walks past International Monetary Fund headquarters (IMF) building in Washington, DC. (File/MANDEL NGAN/AFP)

Economy

Speaking at a press briefing in Washington on Thursday, IMF Communications Director Julie Kozack said the visit will be for discussions on the Third Review under the EFF and the Second Review under the Resilience and Sustainability Facility (RSF).

Pakistan's policy efforts have helped stabilize economy: IMF  

Faraz Saeed

LAHORE: Pakistan&rsquo;s central bank chief has projected economic growth of up to 4.75% in the next fiscal year, citing strengthening activity as inflation eases and financial conditions loosen.&nbsp;According to the State Bank of Pakistan, Governor Jameel Ahmad said on Thursday that gross domestic product (GDP) is expected to expand by 3.75%-4.75% in fiscal year 2026, following a 3.7% growth rate in the first quarter.&nbsp;The remarks were made during a meeting of the Agricultural Credit Advisory Committee (ACAC), where officials reviewed the performance of agri-lending. The projection marks a gradual recovery for an economy that only recently stabilized after a balance-of-payments crisis that forced Islamabad into a $7 billion IMF bailout programme.&nbsp;Inflation eases, stability returnsJameel Ahmad said macroeconomic conditions had &ldquo;significantly improved,&rdquo; with overall inflation falling to 5.8% in January, a sharp decline from the double-digit levels seen in recent years, and reiterated that Pakistan had regained macroeconomic stability and was now moving toward sustainable growth.&nbsp;The governor attributed part of the recovery to aggressive monetary easing. The statement comes after Ahmad noted that financial conditions had eased considerably following cumulative policy rate cuts of 1,150 basis points since June 2024.&nbsp;He added that the full impact of those reductions was still feeding through the economy, supporting growth while maintaining price stability.&nbsp;Despite market expectations for more easing, the State Bank kept its benchmark interest rate unchanged at 10.5% last month, signaling caution as it balances domestic recovery with IMF commitments.&nbsp;Agriculture lending hits record high&nbsp;Agriculture, a sector that accounts for nearly a fifth of GDP and employs a large share of the workforce, remains central to the State Bank&rsquo;s recovery strategy. The SBP governor said banks disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during FY25, up 16% year-on-year. In the first half of FY26 alone, lending reached Rs1.41 trillion, while the number of borrowers rose to 2.97 million.&nbsp;The governor stressed the importance of expanding financial inclusion among small and underserved farmers, urging banks to make full use of the central bank&rsquo;s Risk Coverage Scheme for Small Farmers and Underserved Areas, as well as Zarkhez-e, the SBP&rsquo;s flagship digital agricultural lending platform.&nbsp;The ACAC also reviewed progress under Zarkhez-e, which officials describe as a key component in digitalizing agricultural credit delivery.&nbsp;Boosting post-harvest liquidityThe committee discussed expanding electronic warehouse receipt financing, a system that allows farmers to store crops and access credit against warehouse receipts, rather than resorting to distress sales immediately after harvest.&nbsp;Officials say the move could strengthen agricultural market linkages and improve post-harvest liquidity. Ahmad underlined that agriculture remains critical not only for farm productivity but also for rural livelihoods and food security.&nbsp;Strengthening agricultural financial intermediation, he said, is essential to promote value addition and ensure long-term sectoral sustainability.&nbsp;Balancing growth and IMF oversightThe SBP&rsquo;s cautious stance reflects the delicate stage of Pakistan&rsquo;s recovery. The country is still operating under IMF oversight after narrowly avoiding default in 2023.&nbsp;While inflation has eased and foreign exchange pressures have stabilized, policymakers remain wary of reigniting external imbalances. By holding rates at 10.5% despite expectations of a cut, the central bank signaled that monetary easing will proceed gradually.&nbsp;For now, the SBP&rsquo;s message is clear: macroeconomic stability has been restored, inflation is moderating, credit is expanding, particularly in agriculture, and growth is set to strengthen. The challenge will be sustaining that momentum without undermining hard-won stability.

Pakistan’s central bank governor, Jameel Ahmad, projects 3.75%-4.75% GDP growth in 2026, citing eased inflation, record agricultural loans, and financial inclusion efforts, while cautiously balancing recovery with IMF commitments and macroeconomic stability.

Pakistan’s central bank sees growth picking up as inflation slows  

ISLAMABAD: The International Monetary Fund (IMF) has projected that Bangladesh&rsquo;s economy will rebound to 4.7% growth in both FY26 and FY27 following a recent slowdown, though significant macro-financial challenges persist. The assessment followed the IMF&rsquo;s completion of its Article IV Consultation with <a href="https://www.pakistantv.com/article/bangladesh-remittance-inflow-surges-51-in-january" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Bangladesh</a>, with authorities agreeing to publish the staff report. <a href="https://www.pakistantv.com/article/bangladesh-scraps-indian-economic-zone-for-defence-industrial-park-plan" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Bangladesh&rsquo;s </a>GDP growth slowed to 3.7% in FY25 from 4.2% in FY24 and 5.8% in FY23, largely due to production disruptions during the 2024 popular uprising, tighter policy measures, and weak private investment. Inflation, while easing from previous double-digit levels, remained elevated at 8.2% year-on-year in October FY25. Tax revenue collection also weakened, leading to a sharp fall in the tax-to-GDP ratio. However, the fiscal deficit remained contained due to under-execution of capital and social spending, while foreign exchange reserves began to rebuild on the back of an improved current account balance. Gradual recovery&nbsp;Looking ahead, the IMF expects a gradual recovery over the medium term, with growth projected to accelerate toward around 6%, while inflation is expected to remain elevated at about 8.9% in FY26 before easing to around 6% in FY27. Risks to this outlook remain tilted to the downside, particularly if policy implementation is delayed, exchange rate reforms are reversed, or fiscal discipline weakens. IMF Directors commended the interim authorities&rsquo; stabilization efforts post-uprising but emphasized ongoing vulnerabilities, including weak revenue mobilization, banking sector fragilities, incomplete exchange rate reforms, and high inflation.&nbsp; They called for bold fiscal and financial reforms, including ambitious tax reforms, rationalization of subsidies, improved public investment management, and strengthened social safety nets. Banking sector reforms were also highlighted, with a focus on asset quality reviews, recapitalization, and robust restructuring frameworks. On monetary policy, the IMF stressed maintaining a tight stance to rebuild reserves and curb inflation, alongside full implementation of exchange rate reforms.&nbsp; Structural reforms were urged to enhance governance, promote job creation, diversify exports, and support Bangladesh&rsquo;s transition from least developed country status. Continued efforts under the Resilience and Sustainability Facility were noted as key to climate resilience and mobilizing climate finance.

Bangladesh

Looking ahead, the IMF expects a gradual recovery over the medium term, with growth projected to accelerate toward around 6%, while inflation is expected to remain elevated at about 8.9% in FY26 before easing to around 6% in FY27. 

IMF sees Bangladesh growth rebounding to 4.7% in FY26–27

Saqib Tanveer

DAVOS: International Monetary Fund Managing Director Kristalina Georgieva on Friday praised Prime Minister Shehbaz Sharif as &ldquo;a man of his word,&rdquo; endorsing Pakistan&rsquo;s commitment to politically difficult economic reforms under its IMF program.&nbsp;Speaking to Pakistan TV Digital on the final day of the World Economic Forum 2026 in Davos, Georgieva said Pakistan&rsquo;s government had demonstrated seriousness in implementing reforms agreed with the Fund. &nbsp;&ldquo;The Pakistani government has embraced serious reforms and the fruits of action are already there,&rdquo; she said. &ldquo;We are finally seeing the budget discipline bringing resources that can be deployed to improve lives of people.&rdquo;&nbsp;Georgieva said the IMF was encouraged by the pace and intent of implementation, signalling continuity in engagement with Islamabad.&nbsp;&ldquo;I very much look forward to continuing the implementation of the program that is the Pakistani program, the IMF,&rdquo; she said.&nbsp;The IMF chief spoke in personal terms about her interactions with Sharif, underscoring trust between the two sides.&nbsp;&ldquo;I highly respect the Prime Minister. He is serious. When he gives his word that something would be done, it gets done,&rdquo; she said.&nbsp;Describing recent meetings, Georgieva noted a focus on accountability and follow-through. &ldquo;We have been in meetings many times,&rdquo; she told Pakistan TV Digital. &ldquo;We always use time effectively to identify where progress is made, where there is still more work to do.&rdquo;&nbsp;&ldquo;And that was exactly the case this time.&rdquo;&nbsp;She concluded by commending the government&rsquo;s resolve to press ahead with reforms despite domestic pressures. &ldquo;So, my high respect for the seriousness of the Prime Minister and his cabinet to carry forward difficult reforms for the betterment of Pakistan.&rdquo;&nbsp;Her remarks signal continued IMF confidence in Pakistan&rsquo;s reform trajectory, even as the country grapples with inflation, fiscal tightening, and the social costs of stabilization measures.

Europe

Kristalina Georgieva praises Prime Minister Shehbaz Sharif in Davos, citing serious reforms, budget discipline, and continued confidence in Pakistan’s IMF-backed economic programme.

IMF chief calls PM Sharif ‘man of word,’ lauds Pakistan for undertaking difficult reforms

ISLAMABAD: Global credit rating agency Fitch Ratings on Wednesday reaffirmed Pakistan&rsquo;s long-term foreign-currency credit rating at B-, signaling continued economic stability. <a href="https://www.pakistantv.com/article/fitch-downgrades-frances-credit-rating-in-new-debt-battle-blow" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer" class="fr-green">Fitch</a> also assigned Pakistan a Recovery Rating of RR4, indicating average recovery for investors in the event of a default. Previously, Pakistan had been placed in the &ldquo;Under Criteria Observation&rdquo; category, a temporary status used when agencies reassess ratings under revised rules. It has now been removed. Improved financing conditionsThe rating agency had upgraded Pakistan&rsquo;s foreign-currency rating to B- with a stable outlook in April last year, reflecting improved external financing conditions and policy support under the International Monetary Fund program.&nbsp;Fitch warned that Pakistan&rsquo;s rating could come under pressure if fiscal reforms slow, debt levels rise, or external liquidity weakens, particularly due to delays in IMF program reviews.&nbsp;It said the rating could improve if Pakistan achieves sustained reductions in government debt, strengthens tax collection, and builds foreign exchange reserves beyond current forecasts.&nbsp;The decision was seen by market observers as a positive signal, as Pakistan retained its rating after a review under stricter criteria.

Also assigns Pakistan a Recovery Rating of RR4, which indicates an average level of recovery for investors in the event of a default.

Fitch reaffirms Pakistan’s B- credit rating, removes review status

Pakistan TV

ISLAMABAD: Minister of State for Finance, Revenue and Railways Bilal Azhar Kayani said on Thursday that, following the successful privatisation of Pakistan International Airlines (PIA), the next phase would focus on electricity distribution companies, including IESCO, GEPCO, and FESCO, as the government remains firmly committed to sustainable and inclusive growth.&nbsp;Speaking in an exclusive interview with Pakistan TV, Kayani described the successful privatisation of Pakistan International Airlines (PIA) as a landmark achievement after decades of failed attempts, saying it would reduce the burden of loss-making state-owned enterprises on the national exchequer and help transform PIA into a profitable, world-class airline.&nbsp;&ldquo;The momentum created by the PIA deal will help generate greater investor and advisory interest going forward for the privatization program,&rdquo; he said.&nbsp;&ldquo;The next phase of privatisation is focused on electricity distribution companies, including IESCO, GEPCO and FESCO,&rdquo; Kayani added.&nbsp;The minister said Pakistan&rsquo;s economy has undergone a significant turnaround over the past two years, shifting from crisis management to macroeconomic stabilisation.&nbsp;He added that the government assumed office in February 2024, at a time when inflation was hovering between 20 and 25 percent and Pakistan had just entered a new IMF programme.&nbsp;&ldquo;Today, less than two years on, we have not only successfully completed IMF reviews but also restored economic confidence,&rdquo; he said.&nbsp;The minister highlighted key achievements, including an increase in the tax-to-GDP ratio from 8.8 percent to 10.2 percent within a year, a notable rise in foreign exchange reserves, and a significant jump in workers&rsquo; remittances. &ldquo;Pakistan&rsquo;s improving outlook has been recognised globally, with all three major rating agencies, Standard &amp; Poor&rsquo;s, Moody&rsquo;s and Fitch, upgrading the country&rsquo;s ratings outlook,&rdquo; he added.&nbsp;Kayani credited Prime Minister Shehbaz Sharif&rsquo;s direct oversight of reforms at the Federal Board of Revenue (FBR) for improved tax collection.&nbsp;&ldquo;Initiatives such as Faceless Customs, digitisation of tax systems, and enforcement measures have reduced leakages and enhanced efficiency, earning recognition from the IMF, which showcased Pakistan&rsquo;s reforms as a case study during its annual meetings.&rdquo;&nbsp;Looking ahead, Kayani said the government&rsquo;s priority is shifting from stabilisation to quality GDP growth driven by exports and private-sector investment. He stressed the importance of inclusive growth that benefits lower-income groups and expands employment opportunities.&nbsp;&ldquo;To this end, the government is engaging closely with the private sector through working groups and policy consultations,&rdquo; he added.&nbsp;He also pointed to record-breaking performance at the Pakistan Stock Exchange as a reflection of growing investor confidence, while acknowledging it as one of several indicators of economic health. Additionally, Kayani praised the Special Investment Facilitation Council (SIFC) for improving ease of doing business by providing a one-window platform for domestic and foreign investors.&nbsp;The minister said reduced inflation, lower policy rates and a focus on export diversification, including IT and value-added agriculture, would help ensure sustainable economic growth in the years ahead.

The Experts Corner

After PIA’s privatization, Pakistan plans to privatize power DISCOs, citing economic stabilisation, IMF-backed reforms, improved ratings, and rising revenues.

After PIA success, government to privatise electricity distribution companies: Bilal Kiyani   

ISLAMABAD: Pakistan&rsquo;s Defense Minister Khawaja Muhammad Asif said Tuesday that the country demonstrated its military preparedness and operational capability during the May 2025 conflict with India, earning international recognition and boosting confidence in the country&rsquo;s defense sector.&nbsp;Speaking on Geo News program &quot;Capital Talk,&quot; Asif said Pakistan was &ldquo;ready and proved its abilities in the May war,&rdquo; adding that the confrontation highlighted the armed forces&rsquo; resolve and effectiveness. &nbsp;Asif said the conflict exposed India&rsquo;s strategic weaknesses and damaged Indian Prime Minister Narendra Modi&rsquo;s credibility at home and abroad.&nbsp;&ldquo;India reached out to the United States and also contacted China during the fighting,&rdquo; Asif said. &ldquo;Despite that, Pakistan delivered a decisive response.&rdquo;&nbsp;He warned that any future aggression would be met in the same way.&nbsp;Asif said Pakistan&rsquo;s aircraft and weapons systems were tested during the conflict and have since attracted international attention. &ldquo;Our military platforms have drawn global interest,&rdquo; he said. When asked whether Pakistan was prepared to fight on both its eastern and western borders in 2026, Asif said, &ldquo;Yes, we are completely ready, and we proved our preparedness in May last year.&rdquo;&nbsp;Reduced reliance on IMFThe minister said growing defense procurement orders reflect rising international confidence in Pakistan&rsquo;s military capabilities.&nbsp;&ldquo;This trend can help reduce Pakistan&rsquo;s reliance on the International Monetary Fund within six months,&rdquo; he said.&nbsp;The two nuclear-armed neighbors went to war in May after India launched what Pakistan described as an unprovoked attack following the killing of tourists in Indian-occupied Kashmir.&nbsp;India has accused Pakistani nationals of carrying out the attack, a claim Islamabad has denied. Pakistan has instead called for a neutral, international investigation.&nbsp;The fighting ended on May 10 with a US-brokered ceasefire.&nbsp;Asif said the May conflict reinforced Pakistan&rsquo;s defense readiness and deterrence posture, adding that the country&rsquo;s armed forces are respected worldwide.&nbsp;He also raised concerns about regional security, alleging links between India and militant groups, including the proscribed Tehreek-e-Taliban Pakistan, and the Afghan Taliban.&nbsp;Responding to a question on global affairs, Asif said Russia had &ldquo;some justifications&rdquo; for its actions in Ukraine but said the Venezuelan conflict had &ldquo;no legal or moral basis,&rdquo; warning that the global order is under strain.&nbsp;Commenting on Israel, Asif called Prime Minister Benjamin Netanyahu the world&rsquo;s &ldquo;most wanted criminal&rdquo; and a &ldquo;worst perpetrator against humanity.&rdquo;&nbsp;He added, &ldquo;If the United States truly stands for human rights, Netanyahu should be brought to trial.&rdquo;

Security

Says the country is prepared to counter threats on both eastern and western fronts, stressing deterrence against India and warning of militant risks linked to Afghanistan.

Pakistan defense minister says May conflict proved military readiness, deterrence strength

WASHINGTON: The International Monetary Fund said Friday that its board has approved $206 million in emergency financing for Sri Lanka, to help in the country&#39;s recovery from the devastating Cyclone Ditwah.&nbsp;The natural disaster killed more than 640 people, and affected more than 10 percent of Sri Lanka&#39;s population. Floods and landslides caused by the cyclone left extensive damage throughout the South Asian island nation.&nbsp;&quot;The disaster has created urgent humanitarian and reconstruction needs, generating significant fiscal pressures and balance-of-payments needs,&quot; IMF deputy managing director Kenji Okamura said in a statement.&nbsp;The IMF&#39;s emergency aid -- which comes under the Washington-based lender&#39;s rapid financing instrument -- is meant to help address these pressures, he added.&nbsp;The announcement comes a day after Sri Lanka&#39;s government unveiled plans for $1.6 billion in additional spending next year to fund cyclone recovery.&nbsp;While it is still early for a firm assessment, the fund&#39;s mission chief for Sri Lanka, Evan Papageorgiou, flagged a likely hit to economic activity in the short-term.&nbsp;&quot;Agriculture and tourism are key sectors in Sri Lanka&#39;s growth and are being hit the hardest,&quot; he told reporters in a briefing.&nbsp;&quot;Inflation is likely to rise due to supply disruptions, and the current account deficit will likely widen over the next year,&quot; he added.&nbsp;The government had also secured a World Bank agreement to repurpose $120 million from an ongoing project for disaster recovery spending.&nbsp;Separately, it got a $200 million loan from the Asian Development Bank to finance water management, the first such funding since the cyclone.&nbsp;The IMF said Friday that Sri Lankan authorities are still committed to their economic reform program aided by support of around $3 billion.&nbsp;A further tranche of this rescue package known as the Extended Fund Facility was coming up when the cyclone hit.&nbsp;The IMF said it has deferred the fifth review of the package, with a team set to visit Sri Lanka in early 2026 to resume discussions.&nbsp;It noted this deferment took place due to the time needed to assess the cyclone&#39;s economic impact and examine how an IMF-supported program can best support Sri Lanka&#39;s recovery and reconstruction efforts -- while preserving policy priorities

Asia

The IMF approved $206 million in emergency financing for Sri Lanka to aid recovery from Cyclone Ditwah, which killed over 640 people. The funds will address humanitarian needs, economic disruptions, and support ongoing reform programs.

IMF approves $206M aid to Sri Lanka after Cyclone Ditwah

ISLAMABAD: Pakistan&rsquo;s finance ministry has clarified that the structural benchmarks recently highlighted under Pakistan&rsquo;s IMF Extended Fund Facility (EFF) are part of a phased, medium-term reform agenda previously agreed with the Fund, and do not constitute new or abrupt conditions.&nbsp;In a statement on Sunday, the ministry said the measures build on reforms already initiated by the government and are implemented in a sequenced, step-by-step manner to achieve the program&rsquo;s policy objectives. It emphasized that the Memorandum of Economic and Financial Policies (MEFP) finalized after the EFF&rsquo;s Second Review supplements the earlier MEFP, ensuring continuity and deepening of Pakistan&rsquo;s reform agenda.&nbsp;According to the statement, the benchmarks cover multiple sectors, including fiscal management, governance, financial markets, state-owned enterprises, energy, trade, and corporate regulation.&nbsp;Key measures include enhancing the transparency of civil servants&rsquo; asset declarations, strengthening the operational effectiveness of the National Accountability Bureau, empowering provincial anti-corruption bodies with access to financial intelligence, and improving remittance flows by addressing bottlenecks in cross-border payments.&nbsp;The ministry also highlighted reforms in financial markets, including a comprehensive study of the local currency bond market to broaden the investor base, as well as a reform roadmap for the Federal Board of Revenue, operationalization of the Tax Policy Office, and preparation of a medium-term (3-5 year) tax strategy to enhance revenue predictability and administration.&nbsp;On energy and state-owned enterprises, it cited the ongoing privatization of selected power distribution companies, preconditions for private-sector participation in HESCO and SEPCO, and the signing of Public Service Obligation (PSO) agreements with major entities.&nbsp;In trade and commodity markets, deregulation of the sugar sector aims to reduce price distortions and liberalize operations. At the same time, corporate and regulatory reforms seek to strengthen governance, compliance for unlisted firms, and efficiency in special economic zones. Contingency measures, including a Federal Excise Duty on fertilizer and pesticides, remain part of the program framework.&nbsp;The ministry noted that the IMF&rsquo;s Second Review report confirmed eight of 13 prior benchmarks had been met, including approval of the FY26 budget in line with program targets, implementation of the new agricultural income tax, and amendments to improve asset disclosures. Some benchmarks were delayed due to ongoing reforms and recent floods, and the authorities have requested that their deadlines be reset while emphasizing that overall progress remains on track.&nbsp;The finance ministry concluded that the phased approach ensures reforms are sustainable, sequenced, and aligned with Pakistan&rsquo;s medium-term economic priorities, reiterating that the EFF&rsquo;s structural benchmarks support the government&rsquo;s own reform agenda rather than imposing externally driven conditions.

 The benchmarks cover multiple sectors, including fiscal management, governance, financial markets, state-owned enterprises, energy, trade, and corporate regulation.

Pakistan says IMF benchmarks part of ongoing reform agenda

ISLAMABAD: The International Monetary Fund officially launched its new regional center in Shanghai on Monday, aiming to strengthen research, policy dialogue, and capacity-building across the Asia-Pacific region, marking a significant expansion of the fund&#39;s presence in the region. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowfullscreen="true" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1997868040684474655&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=e8a889d7c22acd41d230d76ea7167318b94c6287&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" style="position: static; visibility: visible; width: 550px; height: 630px; display: block; flex-grow: 1;"></iframe></div> </div>The Shanghai Regional Center, established in partnership with the People&#39;s Bank of China, will serve as a hub for research on economic policies affecting emerging and middle-income countries across the region, the IMF said in the press release. The center will also facilitate engagement with member countries and capacity-building programs. &quot;The center will further strengthen the IMF&#39;s engagement in the dynamic Asia Pacific region, deepen our understanding of perspectives from member countries, and foster international economic cooperation,&quot; IMF Managing Director Kristalina Georgieva said in a statement. Johannes Wiegand, a veteran IMF economist with extensive experience in global and regional economic policy, will serve as the center&#39;s first director. The facility will be co-located with the China IMF Capacity Development Center to maximize collaboration between the two institutions. The IMF thanked China for its financial contributions in setting up the facility. The launch event included an inaugural research seminar titled &quot;Trending Issues in Macroeconomic Policy Research,&quot; which brought together economic scholars from across the region and IMF staff. Participants discussed challenges facing emerging economies, including structural transformation, growth, finance, artificial intelligence, and innovation. The Shanghai center is part of the IMF&#39;s global network of 20 regional centers and offices. These facilities serve various functions, from research and policy analysis to technical assistance and stakeholder engagement.

China

The International Monetary Fund launched its Shanghai Regional Center to enhance engagement in the Asia-Pacific region, promote economic research, and facilitate capacity-building programs for emerging markets, in partnership with the People's Bank of China.

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