International Monetary Fund chief warns trade wars could be detrimental to global growth

Govt decides to ‘immediately’ approach IMF

Govt decides to ‘immediately’ approach IMF

Last year, China shipped goods worth $375 billion more to the USA than it took in from the United States, a figure Trump has often said he wants to curb sharply in an effort to promote American businesses. "We demanded money as a self-respecting, sovereign state that does not need anyone's help to reaffirm itself as the very best country in the world", Umar said.

Lagarde and World Bank President Jim Yong Kim spoke separately on the sidelines of the lenders' annual meeting in a resort zone of the tropical Indonesian island of Bali.

New IMF research shows emerging market countries excluding China could face debt portfolio outflows of up to $100 billion, a level last seen during the global financial crisis.

U.S. Secretary of State Mike Pompeo has said there would be "no rationale" for an International Monetary Fund bailout of Pakistan that pays off Chinese loans.

Speaking today at the International Monetary Fund and World Bank annual meetings in Bali, Indonesia, Ms Lagarde said: "The real question is: Is the economy strong enough?"

Earlier today, Lagarde had said she would meet with Pakistani officials today with expectations that Islamabad will request a bailout of its shaky economy.

"We need to join hands to fix the current trade system, not destroy it", she added. The tariffs stem from the Trump administration's demands that China make sweeping changes to its intellectual property practices, rein in high-technology industrial subsidies, open its markets to more foreign competition and take steps to cut a $375 billion USA goods trade surplus.

But she added that the WTO does need to work on addressing issues like subsidies.

The Fund in its 2018 World Economic Outlook released yesterday also warned that the fragile growth of the region may not be enough for the attainment of the Sustainable Development Goals, if the trend remains for a while.

An IMF mission led by Harald Finger visited Pakistan and met key stakeholders within the government of Pakistan. "As we do in all cases, we will examine closely all aspects, including Pakistan's debt position, in evaluating any loan program", a State Department Spokesperson told PTI.

"Trade is critical, because that is what has lifted so many people out of extreme poverty", said Kim.

"We will have to take a loan to support the falling economy".

Maurice Obstfeld, IMF's chief economist and director of research said whatever affects the three major economies will affect the whole region as majority of the countries relies on their trajectories. Concerns are growing, also, over slowing growth in China and rising debts among some developing countries resulting from projects associated with Beijing's "Belt and Road Initiative" to develop ports, roads and other infrastructure.

"This is because if services are not sufficiently covered, if digital transformation is not covered in that trade framework, then we are missing the point and we are probably losing out on the productivity gains that we could have", she said.