Prime Minister Sheikh Hasina has urged the United Nations Development Programme (UNDP) to take initiatives for creating a large international fund to help the Rohingyas in Bangladesh. The prime minister made the remarks during a meeting with visiting UNDP Goodwill Ambassador and Crown Princess Victoria of Sweden. After the meeting, PM's Speechwriter Nazrul Islam briefed reporters on Monday (March 18). Including Rohingya issue, various bilateral and multilateral issues along with climate change were discussed in the meeting.  

Prime Minister Sheikh Hasina has sought a special fund for creating more women entrepreneurs for their socioeconomic progress and more loan at concessional rates to implement climate-related projects. Addressing the World Bank, she said, "You (WB) can give a special fund for the socio-economic development of women in Bangladesh." The special fund will accelerate the government's efforts to create women entrepreneurs. ’ The Prime Minister said this when World Bank Managing Director (Operations) Anna Bojerde paid a courtesy call on her at Jatiya Sangsad Bhaban here this afternoon. Prime Minister's Speechwriter M Nazrul Islam briefed the reporters after the meeting.

The International Monetary Fund (IMF) has observed that, Bangladesh economy is on the right track.  On Friday, October 13, IMF Director for the Asia and Pacific Department (APD) Krishna Srinivasan said it on mentioning various measures of the government to address macroeconomic challenges. Krishna Srinivasan said,  "I think, the economy is on right track in terms of meeting the objective of programme, getting inflation under control and addressing macroeconomic challenges given in difficult global environment." He said this at a press conference on 'Economic Outlook for Asia Pacific' as part of the Annual Meetings of the World Bank Group and IMF.   "They have tightened monetary policy to reduce inflation. They have allowed more flexible exchange rate." Also mentioned that, every countries of the region including Bangladesh has been facing challenges due to global crisis.  "In coming years, strengthening multilateral and regional cooperation and mitigating the effects of geo-economic fragmentation are vital for Asia's economic outlool," he added.  He said, lower nontariff trade barriers, boost connectivity, and improve business environments are essential to attract more foreign and domestic investment across the region

The funds will help the country avoid default as it grapples with inflation and the aftermath of devastating floods. The IMF has demanded Islamabad implement structural reforms and increase tax collection. The International Monetary Fund (IMF) approved a $3 billion (€2.7 billion) bailout package for Pakistan on Wednesday. The decision follows months of talks with the South Asian country, which has been confronted with severe economic challenges and the prospect of default. Pakistan is facing an acute balance of payments crisis with central bank reserves that could only cover a month of controlled imports, and was also hit by devastating flooding last year. What did the IMF say about the deal? The IMF's Executive Board said the aid "aims to support immediate efforts to stabilize the economy and guard against shocks while creating the space for social development spending to help the people of Pakistan." The aid will be dispersed over nine months, with about $1.2 billion being disbursed immediately. The IMF said Pakistan was facing "a difficult external environment, devastating floods and policy missteps have led to large fiscal and external deficits, rising inflation and eroded reserve buffers in FY23." Pakistan received initial approval for the aid in June. The IMF asked Pakistan to raise consumer energy prices, let go of currency controls, improve tax collection and tighten monetary policy. The central bank is to raise its policy interest rate to a record high of 22% and the government is to raise $1.39 billion in new taxes. The organization also said that it wanted Islamabad to further progress in structural reforms, especially in the energy sector, state-owned enterprises and climate resilience. The bailout had been on hold since December, when the IMF refused to release $1.1 billion from the loan because of the country's lack of compliance with a 2019 agreement signed under the previous government headed by former Prime Minister Imran Khan. Imran Khan's government was toppled in a no-confidence vote in April 2022. Bailout gives Pakistan 'fiscal space' to move forward Prime Minister Shehbaz Sharif said the bailout "bolsters Pakistan's economic position to overcome immediate-to-medium-term economic challenges." He said that the funds gave the "next government the fiscal space to chart the way forward." The Pakistani head of government said that the deal was achieved against "the heaviest of odds" and "against [a] seemingly impossible deadline." Sharif's coalition government is due to face a national election later this year. Islamabad also recently received support from Saudi Arabia and the United Arab Emirates, which have provided $3 billion over the last two days. In the last three months, China had rolled over $5 billion in loans to save the country from default. The Fitch credit rating agency upgraded Pakistan's sovereign debt rating by one notch to CCC from CCC- on Monday. That agency says it perceives a "substantial credit risk" with "a real possibility" of default at this rating.   

An Rs 250 crore fund has been created in Assam by multiple stakeholders, including World Bank, to promote small and medium units in the agriculture sector, officials said on Tuesday. Venture capital fund Caspian Impact Investment Adviser said it has joined hands with the Assam Rural Infrastructure and Agricultural Services (ARIAS) Society to roll out the agribusiness investment firm.  The Hyderabad-based company said that according to the agreement, ARIAS will be the nodal agency for establishing and implementing a contributory and determinate investment trust — the Assam Agribusiness Investment Fund (AAIF). “With a corpus of Rs 250 crore, AAIF is a unique sector-specific fund, focusing on boosting agricultural productivity and employment generation in the state.  It will mainly invest in small and medium enterprises in the agribusiness and allied sectors to achieve accelerated growth,” it said in a statement. ARIAS is designated as the anchor investor for the AAIF, which will be managed by Caspian Equity as the fund manager. Commenting on the development, Caspian Impact Investment Adviser Executive Director and CEO Saurabh Johri said: “We are delighted to collaborate with ARIAS in our shared mission to catalyse the economic development of Assam’s rural communities.  By combining our investment expertise with ARIAS’ deep-rooted knowledge and experience, we aim to make a sustainable impact and empower individuals to thrive.” Caspian Investment Director Ravi Narasimham will lead the fund and the company looks forward to building a partnership with ARIAS to enable the creation of a prosperous and empowered rural community, he added. ARIAS Society Chairman Ashish Kumar Bhutani said, “AAIF is a unique and first-of-its-kind state-led initiative that aims to address the critical gaps in value chain finance in the agriculture and allied sectors and help increase farmers’ income.”  World Bank Group Finance Sector Specialist Toshiaki Ono said that agribusiness SMEs play a vital role in this transformation but external finance, especially long-term and patient capital for their growth, is extremely limited. “We are confident that the Fund will support high-growth and high-impact agribusiness SMEs for vibrant and resilient agri-food value chains in Assam,” he added. Source: assamtribune.com

IMF predicts 5.9 per cent growth for India. The country continues to remain a relative “bright spot” in the world economy, and will alone contribute 15 per cent of the global growth in 2023, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said a couple of months back. The International Monetary Fund in its much-awaited World Economic Outlook report ‘A Rocky Recovery’ predicted that India would grow 5.9 per cent this year. The IMF maintained an optimistic outlook on India. This projected growth is propelled by the rich demographic dividend of the country and people’s growing income and propensity to consume. “We realised that 2020-2021 has been actually a lot better than we thought,” IMF economist Daniel Leigh said at a press briefing, responding to a question from The Hindu. The growth numbers were released as part of the World Economic Outlook (WEO): A Rocky Recovery report, launched at the start of the World Bank and IMF Spring Meetings in Washington DC. “And so actually, there’s less room for catching up,” Mr. Leigh said. For the fiscal year which ended March 31, the IMF had estimated a 6.8 per cent growth rate for India. “And that pent-up demand, from consumption that was informing our previous forecast, is going to be less because they’ve already had more catching up before,” Mr Leigh said. “Again, a very strong economy, which is necessary to allow India to continue to converge towards higher living standards and create those jobs that are necessary,” said Mr Leigh. The Hindu had asked about the outlook for jobs and employment. Global output growth is projected by the IMF to slow to 2.8 per cent in 2023 (calendar year), picking up to 3 per cent in 2024. India continues to remain a relative “bright spot” in the world economy, and will alone contribute 15 per cent of the global growth in 2023, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said a couple of months back. While digitisation pulled out the world’s fifth-largest economy from pandemic lows, prudent fiscal policy and significant financing for capital investments provided in the next year’s Budget will help sustain the growth momentum. “India’s performance has been quite impressive. For this year, we expect India to retain a high growth rate, 6.8 per cent for the year that ends in March. For FY 2023/24 (April 2023 to March 2024) we project 6.1 per cent, a bit of slow down like the rest of the world economy, but way above the global average. And in that way, India is providing about 15 per cent of global growth in 2023,” Ms Georgieva told PTI in an interview. To compare the quantitative impact of different forces, the study relied on a macroeconomic model (PP) based on Platzer and Peruffo (2022) PP is a “real” macroeconomic model, in the sense that it abstracts from nominal and financial frictions that typically underlie cyclical fluctuations. Similarly, for tractability, uncertainty is assumed away. While these are reasonable assumptions for the study of medium- to long-term trends in the real interest rate, the model is ill-equipped to analyze the impact of the financial drivers discussed earlier. Nonetheless, PP still allows for foreign developments to affect domestic interest rates through their implication for net international capital flows. PP is calibrated to represent eight major global economies: the United States, Japan, Germany, the United Kingdom, France, China, India, and Brazil. These are the five largest advanced economies and the three largest emerging market and developing economies, which cover some 70 per cent of global GDP. Demographic developments, the age-earning profile, the share of income going to the richest 10 per cent, productivity trends, the retirement age, average pension replacement rates, labour share, government debt, and public expenditure inform the country-specific calibrations. India’s real GDP growth rates are calculated as per national accounts: for 1998–2011 with the base year 2004/05 and, thereafter, with the base year 2011/12. The WEF paper ‘A Rocky Recovery’ clarified that the projections are based on available information on the authorities’ fiscal plans, with adjustments for the IMF staff’s assumptions. Subnational data are incorporated with a lag of up to one year; general government data are thus finalised well after central government data. IMF and Indian presentations differ, particularly regarding disinvestment and license-auction proceeds, net versus gross recording of revenues in certain minor categories, and some public sector lending. Starting with FY2020/21 data, expenditure also includes the off-budget component of food subsidies, consistent with the revised treatment of food subsidies in the budget. The IMF staff adjusts expenditures to take out payments for previous years’ food subsidies, which are included as expenditures in budget estimates for FY2020/21. Monetary policy projections are consistent with achieving the Reserve Bank of India’s inflation target over the medium term, despite a recent uptick.

The International Monetary Fund on Tuesday said that India and China are expected to contribute more than half of global growth this year, with the rest of Asia contributing an additional quarter. Economists have turned bullish on China, with the country halting its Covid Zero policy and reopening in the second half of 2022. The Indian economy has also shown positive signs, with its growth being amongst the highest in the world over the last two years. The war in Ukraine and the rise of central bank rates to fight inflation were highlighted as factors constraining economic activity. However, the re-opening of China and the loosening of pandemic-related lockdown restrictions may help to boost global growth. The ongoing war in Ukraine and logistical challenges posed by the pandemic and other geopolitical issues have kept price pressures high, particularly in energy commodities and general foodstuffs. Asia's emerging and developing economies are hitting their stride as pandemic supply chain disruptions fade and the service sector booms. "Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are all back to their robust pre-pandemic growth," the organisation said. The IMF noted that conditions in Asia and the Pacific are now improving, with economic headwinds that the regions faced last year now fading. "These developments are helping improve prospects across the region, with growth set to accelerate to 4.7 percent this year from 3.8 percent in 2022. This will make it by far the most dynamic of the world’s major regions and a bright spot in a slowing global economy," it said. With central banks opting to cut rates aggressively, Asian economies are likely to see lower levels of inflation. "There are now encouraging signs that headline inflation peaked during the second half of last year, though core inflation is proving more persistent and has yet to ease definitively. We expect inflation to return to central bank targets sometime next year amid an easing of financial and commodity headwinds," the IMF said. With higher spending during the pandemic driving fiscal deficits higher, several Asian countries continue to face debt distress. "With several Asian countries facing debt distress, authorities must continue with their plans for gradual fiscal consolidation. Doing so will also ensure that monetary and fiscal policies are not acting at cross purposes," it said.

2022 is the year of 5th anniversary of the India-UN Development Partnership Fund, a landmark moment to reflect on how the vision for South-South collaboration ingrained in the ambition and design of the Fund, came to the service of partner countries and communities. On this event, eminent personalities from the United Nations, Permanent Representatives of partnering countries and Resident Coordinators supporting the implementation of projects at the country level, exchanged perspectives on the fund's results to date. At the event, Permanent Representative of Morocco Omar Hilale said, "The India-UN development partnership fund is a practical demonstration of bankable partnerships with developing countries aiming at advancing and accelerating the sustainable developments towards the world. Morocco is a powerful advocate for South-South cooperation."  Ambassador of Malawi Dr. Agnes Chimbri-Molande praised the India UN development partnership fund and said that the fund aims to achieve a transformative SDG impact through South-South cooperation. India's generous contributions to the India-UN Development Partnership Fund shows its desire to be a true catalyst for global sustainable development, said Usha Rao-Monari, Associate Administrator of the United Nations Development Program. Government of India established the India-UN Development Partnership Fund in in June 2017, to work with fellow developing countries in a spirit of South-South cooperation by providing support to projects that aim to contribute to the achievement of the (SDGs), as per their request. This fund is a dedicated facility established in 2017 within United Nations Framework Convention on Climate Change (UNFSSC). It is supported by the Government of the Republic of India, and implemented in collaboration with the United Nations system. The India-UN Development Partnership Fund supports Southern-owned and led, demand-driven, and transformational sustainable development projects in the developing world.  United Nations agencies implement the Funds projects in close collaboration with partnering governments. Source: ANI

Venture capital firm Sequoia India and Southeast Asia has raised USD 2.85 billion - the highest ever in one tranche by any venture capital fund - to fund startups and other ventures in the region, the company said in a statement. Of the funds raised, USD 2 billion is dedicated to India across two funds and the remaining USD 850 million funds is for Southeast Asia. As per the SEC filings and earlier fundraising announcements, this now takes Sequoia's total committed capital in India and South East Asia to USD 9 billion over the past 16 years. "Sequoia India and Sequoia Southeast Asia have collectively raised USD 2.85 billion across a new set of funds, including India venture and growth funds and a USD 850 million Southeast Asian fund - the firm's first dedicated fund for that region," the statement said. This is the largest fund raised by any VC firm in the region, it added. Sequoia has had a stellar run in the last few years, witnessing 9 IPOs of companies it funded and USD 4 billion of exits in the last 18 months. The firm has 36 unicorns in the region, including the likes of Zomato, Unacademy, Pinelabs, Byjus and Razorpay. "This fundraise comes at a time when markets are starting to cool after a very long bull run, and is a signal of the firm's deep commitment to the region's startup ecosystem that continues to show promise," the statement said. "India and Southeast Asia have both grown rapidly in the last decade, thanks to the acceleration of digital adoption and rising consumer incomes." Last year, India emerged as the third-largest startup ecosystem in the world, after the USA and China. Southeast Asia, meanwhile, is on track to become a USD 1 trillion digital economy by 2030. Sequoia has been present in India for the past 16 years and in Southeast Asia for ten. "The firm has partnered with more than 400 startups across multiple sectors, stages and market cycles and has 36 unicorns in its portfolio. Between 2021-2022, the VC firm saw nine IPOs, with notable ones like Freshworks and Zomato," the statement said. The company said its initiatives in the region contribute to building and supporting the ecosystem in ways that go beyond capital. "Surge, a 16-week program of early-stage startups launched in 2019, has grown to a community of 246 founders from 112 startups across more than 15 sectors. It also launched Sequoia Spark, a fellowship and mentorship program for female founders last year, as well as Sequoia Build, a program for growth-stage startups looking to scale sustainably," it noted. With this fundraise; Sequoia India will continue to partner with the next generation of founders, building enduring companies across seed, Series A, and growth stages. It will also continue to double down on initiatives to collaborate across the ecosystem with founders, governments, co-investors, and partners. "The market in India is seeing increasing consumption power, supportive regulations and high talent density. Founders today are leveraging this to solve a diverse range of problems with the aim to create value for millions of people, both in India and for the world. And many large companies with regional or global footprints are expected to emerge from this region in the decade to come," the statement added. Source: Business Standard

    Vedanta Resources Ltd's plan to set up a USD 10 billion fund to acquire state-owned firms has attracted interest from sovereign wealth funds and the corpus will be floated once the government invites price for firms such as BPCL NSE -2.25 % or Shipping Corporation of India (SCI), its chairman said. Metals and mining magnate Anil Agarwal's group has expressed interest to acquire government stake in Bharat Petroleum Corporation Ltd (BPCL) and SCI  NSE -3.77 %, worth over USD 12 billion. "We are creating a USD 10 billion fund," Agarwal said in an interview. The fund will be made of Vedanta's own resources and outside investment. "We have a tremendous response for this, especially from the sovereign wealth funds," he said. The idea is to create a fund with a 10-year life span that will use a private equity-type strategy, buying into companies and boosting their profitability before seeking an exit.   Agarwal had previously stated that Vedanta would team up with London-based firm Centricus to create a USD 10-billion fund that will invest in stake sale of public sector undertakings. Centricus oversees USD 28 billion in assets. "They all want me to be the chairman," he told PTI in the interview. While Vedanta has completed due diligence of BPCL, the government earlier this month postponed invitation of the price bid for sale of its stake in SCI. The government has not indicated any date for invitation of price bids for BPCL or SCI. "As soon as the government starts coming out with a disinvestment programme, in no time we can raise. Nobody wants to put in money and pay fees and other costs. All is ready and as soon as the government activates the bidding process, we will move forward. Money will not be a problem," he said. Agarwal, who turned a tiny scrap metal business into London-headquartered Vedanta Resources, made a fortune buying state companies and fixing them. In 2001, it acquired Bharat Aluminium Company Ltd (BALCO), followed by the acquisition of the loss-making Hindustan Zinc in 2002-03. In 2007, it acquired a 51 per cent controlling stake in Sesa Goa Ltd from Mitsui & Co and in 2018 Vedanta snapped up Electrosteel Steels Ltd (ESL), pipping suitors like Tata Steel. He is now seeking to repeat that success, betting he can spot gems among the dozens of companies being put on the block by Prime Minister Narendra Modi's government to raise record proceeds. The entrepreneurial dynamism in India "can be harnessed to unlock incredible transformation in the public sector", Agarwal said. "We believe that this strategy can, and will, play a crucial role in the country's ongoing industrialisation." Source: The Economics Times