Ministry of Finance

The World Bank is set to phase out loans to China by 2031, with China's Ministry of Finance attributing the shift to the nation's advancing economy and evolving development needs. The ministry described the declining bilateral financing cooperation as a 'natural' transition toward knowledge sharing.

The Pakistani government plans to transition to a Riba-free financial system by Dec 31, 2027, with all new loans Shariah-compliant from Jan 1, 2028. Existing conventional loans will continue until maturity, and foreign-owned banks may offer both Islamic and conventional products. The strategy aligns with a 2022 court ruling and a 2024 constitutional amendment.

The Pakistani government anticipates easing inflationary pressures in FY2027 following the reopening of the Strait of Hormuz and reduced geopolitical tensions. The Ministry of Finance highlights improved global market sentiment, lower oil prices, and stronger macroeconomic fundamentals as factors supporting economic growth and stability.

The government established a Petroleum Prices Stabilisation Fund to mitigate oil price shocks by channeling proceeds into the Public Account under the Special Deposit Fund. The fund aims to adjust petroleum prices weekly to minimize consumer impact, leveraging savings from unconventional oil imports and potential future austerity measures.

Ethiopia's Ministry of Finance has reached an agreement in principle with an Ad Hoc Committee representing investors behind its one-billion-dollar Eurobond. The deal signals progress toward restructuring the country's debt obligations.

The Federal Board of Revenue (FBR) in Pakistan is proposing to replace monthly tax collection targets with a fiscal-year-based performance evaluation system to reduce short-term pressure on field officers and focus on annual outcomes. The shift aligns with broader tax administration reforms, including centralised technology-driven enforcement and a reallocation of responsibilities to the Tax Policy Office and Tariff Policy Board.

Sudan's Ministry of Finance has launched efforts to regulate the informal sector and transition it into the formal economy to improve economic management and data quality. The initiative aims to broaden the base of formal economic activity.

Finance Minister Muhammad Aurangzeb presented a budget with tax relief for high-earning individuals, concessional loans for farmers, and subsidies for fertilizers and farm equipment. However, the budget is criticized for lacking a coherent industrial policy to drive sustainable, export-led growth and for relying on real estate as a growth engine, a strategy with a history of structural weaknesses in Pakistan.

China retaliated against Washington by banning government procurement from 46 US defense contractors and blacklisting 10 American companies from receiving Chinese dual-use exports. The Ministry of Finance announced the restrictions, targeting firms in defense and rare earth sectors.

Indonesia's Finance Minister Purbaya Yudhi Sadewa secured Chinese support for Indonesia’s first sovereign Panda Bond during a visit to Beijing. The visit also included discussions on expanding yuan-rupiah settlements and strengthening financial cooperation.

Members of parliament have proposed establishing an independent Parliamentary Budget Office to provide unbiased budget analysis, with a 2025 private member's bill introduced but opposed by the Ministry of Finance. The bill was referred to a committee for review, but no amended draft has been presented for the 2026-27 budget debate. Examples of existing parliamentary budget offices in countries like Australia, Canada, and Afghanistan are cited.

Pakistan's Finance Minister Muhammad Aurangzeb emphasized economic planning mindful of external and geopolitical risks during a meeting with UK Parliamentary Under-Secretary Hamish Falconer. Discussions covered regional stability, structural reforms, and strengthening Pakistan-UK economic cooperation.

Zou Jiayi is president and chairwoman of the Asian Infrastructure Investment Bank (AIIB), a multilateral development lender headquartered in Beijing and inaugurated in 2016. She previously held senior roles at the Ministry of Finance and the Chinese People’s Political Consultative Conference.

Mainland China's Ministry of Finance plans to issue 15 billion yuan ($2.2 billion) in sovereign bonds in Hong Kong next week, its third issuance this year, to strengthen Hong Kong's role as the world's largest offshore yuan trading hub. Analysts anticipate strong demand due to the yuan's appreciation and international investors seeking portfolio diversification amid geopolitical tensions.

The Federal Government approved payments for 1,240 contractors across ministries and agencies. Contractors with verified claims of N100 million or below were prioritized in the latest disbursement.

India's Ministry of Finance is considering a potential $525 million share sale in Hindustan Zinc. The transaction is being evaluated by the government as part of its financial strategy.

Pakistan's foreign exchange reserves are nearing $18 billion for FY26, but a widening trade deficit of $34.76 billion threatens reserves and remittances. Experts warn of a potential current account deficit, depreciation pressure on the rupee, and challenges from upcoming foreign debt payments.

Vietnam’s Ministry of Finance has proposed allowing small and medium enterprises (SMEs) to use digital assets, virtual assets, and intellectual property as collateral for loans. The initiative aims to expand financing options for SMEs by recognizing non-traditional assets as security.

Yen traders are preparing for potential intervention risks as Monday holidays approach in Japan. The article references Japan's credit rating cut by Moody's Investors Service from Aa2 to Aa3, indicating concerns about the country's financial stability.

Saudi Arabia has ordered government entities and its sovereign wealth fund to freeze payments to consultancy firms, management consultants, and law firms until the end of June as it manages economic pressures from the Iran war. The freeze applies to both new contracts and existing work, though the Finance Ministry disputes claims of payment delays. This marks the end of a consulting boom that flourished under Vision 2030 over the past decade.

Polish lawmakers have approved a revised crypto bill backed by the Ministry of Finance to implement the EU MiCA framework. The bill was passed with a vote of 241-200 after facing repeated vetoes. This move aims to regulate the cryptocurrency sector in Poland.

Japan's Ministry of Finance intervened in the yen during Golden Week. The intervention may indicate Tokyo's resolve is being tested by markets. Japan previously fired its yen bazooka twice.

Atsushi Mimura, Japan's vice finance minister for international affairs, declined to comment on discussions about potential government intervention in the yen's exchange rate.

Romania's Finance Minister, Alexandru Nazare, is urging continued economic reforms to prevent the country's credit rating from being downgraded to junk status. The government emphasizes the need for sustained policy efforts to maintain financial stability and investor confidence.

Finland is considering a tourist tax to generate revenue and manage tourism-related costs, allowing municipalities to set their own rates based on accommodation prices. The proposal, inspired by similar systems in cities like Venice and Paris, could take effect in 2027 after public feedback and legislative review. The tax would apply to both international visitors and domestic travelers.