Babar Ali’s Post

Debt of the 26 poorest countries is at an 18-year high while two-thirds face armed conflicts or institutional fragility with natural disasters causing average annual losses of 2% of GDP

Surcharges exacerbate challenges faced by countries already dealing with dire climate, security, and health crises. They should not be a thing, period.  Time for the IMF to move closer into line with its broader mandate and urgent needs of developing countries in a time of growing challenges. More below: 

The International Monetary Fund (IMF) monitors the economic and financial development globally. Its mission is to #promote the stability of the international monetary system and enable the countries to trade and grow #sustainably. IMF is set to provide Pakistan with $1 Billion in 2025 for climate financing upon completing the first economic review under the Extended Fund Facility (EFF) loan program. This potential financing would make the current loan program, the largest in Pakistan’s history. Regardless, it was noted that the progress made in securing climate-related funds with the IMF mission was not according to the required standards. Further, it was revealed that a Washington-based lender has approved Pakistan’s proposal to allocate 1 percent of its #GDP annually for climate change initiatives. This includes overcoming natural disasters and executing early warning systems under the National Adaptation Plan. Nonetheless, the release of #climate financing remains depending on the condition that it meets specific targets. #DigitalPakistan #TechUpdate

Debt and crises collide as World Bank, IMF meetings begin The World Bank and International Monetary Fund annual meetings are set to kick off amid warnings of a looming donor funding crisis and record debt levels for countries battered by conflict and disasters. The 21-26 October meetings are a forum for policymakers to discuss economic challenges. Economic inequities are intertwined with today’s humanitarian crises. The world’s 26 lowest-income countries are “deeper in debt” than they’ve been in years, a World Bank analysis released before the meetings warned. They’re more vulnerable to disasters, the cost of adapting to climate change is higher, and many are snared in conflict, “yet international aid as a share of their GDP has dwindled to a two-decade low, forcing many to obtain financing on punishing terms”, the report said. Meanwhile, donor promises for major development, health, and climate funds could fall short in the coming months, the US-based Center for Global Development warned. It’s based on an analysis of current donor commitments and past funding to everything from the Global Fund and Gavi to new climate funds. Source: https://lnkd.in/gz9j5v-i

The liquidity crisis is not over for developing countries. While some low- and lower-middle-income countries have regained access to financial markets, liquidity pressures have continued to increase. Immediate debt relief remains the best way to stabilize developing economies and enable them to pursue climate-related investments. Here are my latest thoughts in a piece co-authored with Isaac Diwan #africa #debtrelief #climate https://lnkd.in/gZr_pArU

What's Africa to expect from this week's World Bank and IMF spring meetings. A few topics which will be discussed during the meeting. -Transform biased credit rating practices of the big three credit rating agencies (S&P, Moody’s, Fitch). -Channel climate and development finance to strategic investments in regenerative agriculture and agroecology to restore Africa’s food sovereignty, renewable energy deployment for Africa’s development rather than for export. -Commit to a credible reform path for the global debt architecture.  -Urge private lenders to participate in debt reduction and rescheduling of loan repayments from low-income African countries to tackle the debt crisis. #credit rating practices #climate and development finance #Africa’s development #agriculture and agroecolog #worldbank #IMF

What's Africa to expect from this week's World Bank and IMF spring meetings by Elizabeth Khumalo As the World Bank and the IMF Spring Meetings kicks off this week, African nations, particularly those in the Southern region, are keenly

A RECENT article by Nathan Porter, IMF’s Pakistan mission chief, on ‘Revitalising Pakistan’s economy’ in Dawn provided a comprehensive overview of the key considerations and decisions vis-à-vis the Extended Fund Facility (EFF) that will guide our economic reform challenges up to October 2027. However, a crucial element was overlooked — climate change. Pakistan cannot afford to delay climate action any longer. The absence of any mention of climate risks highlights a significant gap in the Fund’s approach to Pakistan’s economic turnaround. This oversight is particularly of concern since our fiscal policy is not designed to support climate resilience and mitigation efforts while pursuing macroeconomic stability.

At this week’s World Bank Fall Meetings, it's crucial for world leaders to address the urgent debt crisis that threatens the progress of developing countries. The United Nations reports that nearly half the global population live in countries spending more on debt than on education or health services. Global public debt reached a staggering $92 trillion in 2022, with 45 developing countries bearing a disproportionate share. African countries pay four times more in borrowing costs than the U.S., and the number of countries with high debt levels has surged from 22 in 2011 to 59 in 2022. These statistics serve as a stark reminder of the global financing crisis derailing efforts towards climate resilience, poverty alleviation, and the fulfillment of the U.N.'s Sustainable Development Goals. World leaders must implement smart reforms to the Multilateral Bank infrastructure to unlock crucial funding and drive sustainable development. Increased support for the International Development Association (IDA), a vital financial mechanism that provides low-interest loans and grants to the world's poorest nations, is also essential.

This is tragic. Today, we learnt that the country of 🇰🇪 pays 80% of its GDP towards debt service. How does it meet other needs let alone meet its climate bill? We urgently need a reform of our global financial architecture that serves communities and coubties not that strangles . We need a humane global financial architecture and do away with the old outdated one !