IMF

The IMF warns that the war in the Middle East is increasing global inflation. The IMF now projects headline inflation to reach 4.7% this year, up from 4.1% in 2025, with AI investment helping to mitigate the impact.

The IMF reduced its 2026 global growth projection, citing uncertainty and risks from renewed fighting in the Middle East. Petya Koeva Brooks, an IMF deputy director, highlighted the impact of recent developments on the economic outlook.

The IMF warns that the U.S.-Iran conflict will cause prolonged high inflation through 2027, despite not initially harming economies as much as feared.

The IMF has raised its inflation projections for global price growth. Donald Trump announced that the ceasefire with Iran is 'over'.

The IMF has appointed Silvana Tenreyro as its next chief economist. She is a former Bank of England policymaker and will be the second woman to hold the position.

Jamaat-i-Islami Pakistan chief Hafiz Naeemur Rehman announced nationwide protests against the government's 'extortionary' petroleum levy, citing high taxes on petrol and diesel, misuse of climate support levy funds, and rising energy prices. The protests are scheduled for Friday, July 10, with demands for lower petrol prices and government action on energy infrastructure and regional disputes.

Pakistan's unified agriculture income tax regime collected only Rs5.62bn, less than 2% of declared agricultural income, highlighting systemic failures due to political resistance and institutional weaknesses. Provincial governments, influenced by landed elites, failed to enforce the tax effectively despite IMF-backed reforms.

The government reduced petrol and diesel prices by Rs1.97 per litre, effective immediately until July 10, reflecting lower global prices. Diesel prices peaked at Rs520.35 on April 3, while petrol reached Rs458.41. Tax adjustments, including a doubled climate support levy, influenced the price cuts.

The IMF's Tobias Adrian stated that policy choices will determine whether tokenization strengthens or fragments the financial system. He highlighted that risks could shift from banks to market infrastructure providers and smart contracts as tokenization expands.

The IMF states that tokenization may accelerate financial processes but could also increase vulnerability to shocks. The organization highlights both potential benefits and risks associated with tokenization in finance.

The IMF is joining efforts to address 'opaque' debt in Nigeria, targeting total return swaps that threaten transparency in emerging market sovereign debt.

The State Bank of Pakistan (SBP) has abolished the Sohni Dharti Remittance Programme (SDRP) and Telegraphic Transfer Charges Incentive Scheme (TTCIS), effective July 1, 2026, following IMF scrutiny. The incentives, which cost up to Rs120bn annually, were discontinued to address concerns over non-performance-linked financial allocations. Banks will continue offering free remittance transfers to users despite the scheme’s termination.

Tunisia has rejected an IMF program and plans to raise nearly 2 billion euros in 2026 through markets, relying on its central bank to manage debt as bills mature.

Senegalese lawmakers voted to limit presidential powers, proposing reforms to empower parliament and ban the president from leading a political party or coalition. The move follows political tensions after Speaker Ousmane Sonko was dismissed as prime minister by President Bassirou Diomaye Faye, amid a national debt crisis and IMF lending suspension.

Egypt is nearing a $1.6 billion IMF payout with an initial deal. Talks are planned in Cairo, attended by the CIA chief, aimed at a truce in the Gaza Strip.

The EU ETS Directive revision is critical for balancing decarbonization with industrial competitiveness as Europe faces rising energy costs and a growing global competitiveness gap. Higher electricity prices in the EU, driven by ETS costs, threaten industries like chemicals, with closures and job losses already reported.

IMF chief economist warns that 'tit-for-tat' trade warfare threatens the global economy, with Pierre-Olivier Gourinchas stating such tactics will be self-defeating. Gourinchas, who is leaving the fund, highlights risks from attempts to gain small advantages through trade conflicts.

The government secured parliamentary approval for the FY27 budget, which aligns with IMF requirements but lacks meaningful structural reforms. Finance Minister Muhammad Aurangzeb emphasized growth potential under stable energy prices, though the budget perpetuates reliance on consumption, remittances, and real estate, with minimal progress on tax system improvements or export-led growth strategies.

Ethiopia's economy is among Africa's fastest-growing and has received IMF backing, but the country remains in default after bondholder talks collapsed in May 2026.

Ecuador must reopen its frozen mining cadastre by end-June under an IMF deadline, which could enable progress on stalled copper and gold projects. The IMF's involvement highlights the urgency of the decision.

The IMF approved Ukraine’s first program review amid Russian strikes on Kyiv. The IMF softened tax conditions after only one of four required bills passed parliament, with a key test in September over the 2027 financing gap.

Senegal's political crisis has deepened as President Faye dismissed Prime Minister Sonko and dissolved the government amid a frozen IMF programme.

The IMF has warned that Costa Rica's public health system reserves may deplete by 2029, leading to increased state financial burden. This alerts to potential funding shortages in the country's renowned healthcare system.

Senegal’s government is open to debt restructuring after discovering billions in undisclosed debt from the previous leadership, which pushed its debt to over 130% of GDP. Political tensions between President Bassirou Diomaye Faye and former Prime Minister Ousmane Sonko over debt resolution led to a crisis, but Sonko has softened his opposition. The IMF acknowledged progress in reducing the deficit but highlighted risks from the Iran war.

El Niño is expected to cause droughts in Africa, threatening cocoa and coffee crops in Ghana and Côte d’Ivoire, which supply over half the world’s cocoa. The droughts could reduce outputs, drive up global prices, and harm farmers who do not benefit from government-fixed prices. The IMF’s Africa chief announced plans to support nations affected by conflict-induced shocks.

Venezuela's GDP has fallen from $370 billion in 2012 to $100 billion, with a $240 billion debt pile expected to be revealed. The US-imposed regime change and lifted sanctions may enable a historic debt restructuring, surpassing Greece's 2012 default and involving numerous creditors without IMF participation.

The state budget is criticized for lacking strategic vision, favoring the wealthy, and deferring necessary reforms. It reduces provincial funding, increases indirect taxes burdening the poor, and maintains a low tax-to-GDP ratio, failing fiscal equity and expansion goals.

Nigeria's $5 billion swap deal with First Abu Dhabi Bank has drawn an IMF warning over hidden costs as Abuja seeks cheaper financing.

The IMF warns that instability in the Middle East, caused by the US-Israeli war on Iran, could have lasting economic impacts on Africa, particularly affecting food security and agricultural costs. IMF's new Africa director, Zeine Zeidane, stated that disruptions in fertilizer exports may take six to seven months to resolve.

Simon Johnson states that AI will reduce the demand for white-collar workers. He discusses job preparation in the context of AI's impact.

Suriname discovered oil and is hosting the SEOGS energy summit with a local-content forum, but lacks a local-content law unlike Guyana, leaving oil participation determined by contract clauses. The IMF highlights the GranMorgu project's potential economic impact.

A Pakistani parliamentary committee criticized the government for collecting climate levies without initiating concrete projects, approved an Islamabad token tax hike, and demanded stricter enforcement of petroleum levies from oil marketing companies. The panel, chaired by Naveed Qamar, emphasized aligning climate policies with IMF commitments and highlighted Pakistan's vulnerability to environmental risks.

The PTI criticized the government for 'anti-poor' and 'anti-farmer' fiscal policies, citing economic decline, reduced cotton production, and mismanagement in agriculture. They accused the ruling coalition of over-taxation, misquoting World Bank data, and prioritizing luxuries over public welfare.

The Senate Secretariat has terminated fuel conservation and austerity measures, restoring a five-day workweek with full staff from June 22 due to eased fuel prices following a US-Iran deal. Prime Minister Shehbaz Sharif approved ending these measures, except for specific market timings.

Pakistan has repeatedly entered IMF programs with recurring issues of a narrow tax base, economic distortions, and weak institutions. The article argues that systemic inefficiencies persist due to elite-driven policies designed to concentrate power and resources, exemplified by the petroleum levy which funds federal priorities without benefiting provinces.

Qatar's LNG exports show tentative recovery as a tanker transited the Strait of Hormuz, a key route affected by the Iran war. QatarEnergy aims to restore 50% of output capacity within a month of the strait reopening fully, with full production hindered by Iran's earlier attacks on two LNG plants, requiring up to $26 billion and five years for repairs. The IMF projects an 8.6% GDP contraction for Qatar this year, the worst in the Gulf.

Senegal’s Ousmane Sonko, now parliament’s speaker, expressed openness to IMF debt restructuring talks, a shift from his previous opposition as prime minister. The country faces economic pressure after undisclosed $7 billion loans pushed debt to over 130% of GDP, leading the IMF to suspend a $1.8 billion lending program.

Flutterwave, a Nigeria-founded fintech firm operating in 35 African countries, aims to expand through acquisitions and integrate Ripple's stablecoin to become Africa's primary fintech platform. The company secured a $3.25 billion valuation after an investment round including Ripple and has acquired Mono, a Nigerian startup, to enhance its consumer financial data offerings.

The IMF Chief warns that artificial intelligence (AI) could create a new inequality crisis. This highlights potential risks of AI exacerbating economic disparities.

PPP Chairman Bilawal Bhutto-Zardari warned of a National Assembly boycott unless the party's budget-related demands are addressed, citing discrepancies between pre-budget consultations and the final budget document. The PPP raised concerns about provinces meeting IMF-linked revenue targets and urged the government to broaden the tax base instead of increasing taxes on existing classes. Another round of talks between PPP leaders and Deputy Prime Minister Ishaq Dar is expected.