With uncertainty on the horizon, the IMF has downgraded its outlook for the world's economic output. It warned that US tariffs on European cars, a no-deal Brexit or a trade war with China could tank the global economy.
Christine Lagarde's resignation came two weeks after her nomination on July 2 for the ECB's top job. She did not immediately quit the IMF because of uncertainty over whether the new European Parliament would support her and other new EU leadership positions, sources told Reuters.
The global lender last week formally approved the USD 6 billion loan to Pakistan, which is facing "significant" economic challenges on the back of "large" fiscal and financial needs and "weak and unbalanced" growth.
Pakistan last month reached an agreement with the Washington-headquartered International Monetary Fund (IMF) for a USD 6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy as tries to overcome a ballooning balance-of-payments crisis.
Earlier on Wednesday, the IMF said current and threatened US-China tariffs could cut 2020 global gross domestic product by 0.5%, or about $455 billion -- a loss larger than G20 member South Africa's annual economic output.
Even as Pakistan continues its brinkmanship with India, its sliding economy has required the International Monetary Fund to bail it out for the 13th time in 3 decades. How dire is its financial state, how did it get here?
A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Khan met IMF chief Christine Lagarde in China.