Tag Archives: World Bank

Russia ratifies $100bn BRICS New Development Bank

The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.

The bank’s board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors, according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.

The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

Read more » RT
See more » http://rt.com/business/234027-russia-ratifies-brics-bank/

Catching the dragon

IN RECENT weeks, economists at the World Bank, the International Monetary Fund and Goldman Sachs, a bank, have tentatively suggested that within a year or two, India’s economy might be growing more quickly than China’s. The day came sooner than they had imagined. Official statistics published on February 9th revealed that India’s GDP rose by 7.5% in 2014, a shade faster than China’s economy managed over the same period (see chart). Narendra Modi, India’s publicity-savvy prime minister, could scarcely have hoped for a better endorsement of his first few months in office.

Read more » The Economist
See more » http://www.economist.com/news/business-and-finance/21642656-indias-economy-grew-faster-chinas-end-2014-catching-dragon?fsrc=scn/tw/te/bl/catchingthedragon

Brics nations to create $100bn development bank

The leaders of the five Brics countries have signed a deal to create a new $100bn (£58.3bn) development bank and emergency reserve fund.

The Brics group is made up of Brazil, Russia, India, China and South Africa.

The capital for the bank will be split equally among the five participating countries.

The bank will have a headquarters in Shanghai, China and the first president for the bank will come from India.

Brazil’s President, Dilma Rousseff, announced the creation of the bank at a Brics summit meeting in Fortaleza, Brazil on Tuesday.

A new player

At first, the bank will start off with $50bn in initial capital.

The emergency reserve fund – which was announced as a “Contingency Reserve Arrangement” – will also have $100bn, and will help developing nations avoid “short-term liquidity pressures, promote further Brics cooperation, strengthen the global financial safety net and complement existing international arrangements”.

The creation of the Brics bank will almost surely create competition for both the World Bank and other similar regional funds.

Brics nations have criticised the World Bank and the International Monetary Fund for not giving developing nations enough voting rights.

One of the goals for the bank – whose creation has been discussed for some time – would be to increase the amount of money loaned to developing countries to help with infrastructure projects.

Courtesy: BBC
http://www.bbc.com/news/business-28317555

World Bank: India Overtakes Japan as World’s Third Largest Economy

In purchasing power parity (PPP) terms, India is now the world’s third largest economy — surpassing Japan.

By Ankit Panda

In a sliver of good economic news during an Indian election that is widely focused on economic growth, the World Bank announced in a report on Tuesday that India overtook Japan as the world’s third largest economy in terms of purchasing power parity (PPP). According to the World Bank’s International Comparison Program (ICP) data, India holds a 6.4 percent share of global GDP on a PPP basis. The United States remains in first place with a 17.1 percent share and China trails it at 14.9 percent. Japan, while still the world’s third largest economy in nominal terms, holds a 4.8 percent share of global wealth.

Read more » THE DIPLOMAT
http://thediplomat.com/2014/05/world-bank-india-overtakes-japan-as-worlds-third-largest-economy/

We are billionaires, let Pakistanis suffer! Ishaq Dar sons..

We are billionaires, let Pakistanis suffer!

By Ahmed Tamjid Aijazi

Dubai: HDS Tower in Cluster F of Jumeirah Lakes Tower is only one of the 34 story buildings that belong to the mighty HDS Group. The News Tribe learnt that several other buildings in Jumeirah Lakes Towers, Business Bay and International City, like the HDS Sunstar Towers, are also owned by the millionaire brothers, surprisingly Pakistanis.

The uniqueness of the car rental company lies in its array of niche car manufacturers and models of cars unavailable to the market. HDS Rent a Car owns the 2012 Lamborghini Aventador LP700-4, Mercedes Benz SLS 63 AMG Gullwing, apart from the more economy cars such as Peugeots and Renaults. Some of the many exotic, luxury and SUVs in the lineup are the the Ferrari Berlinetta F12 and the McLaren F1, and you can do the numbers yourself!

The owners from a ‘poor and starving’ country Pakistan, where the average monthly income for an individual is $41, are offering such exotic services in Dubai, which even the local Emiratis fail to afford.

Sources further told The News Tribe that the story does not end here; another Finance Minister from the Nawaz Sharif Government, made hundreds of real estate transactions with Madhu Bhindari, an Indian billionaire entrepreneur, who is on a run-away from Dubai, after losing 150 million dirhams in the 2008 crisis. However, the finance minister’s buildings and investments are still there, earning a hefty income.

A Pakistani real estate agent, who claimed to carry out transactions for a serving government officer in Sindh Government, told The News Tribe that a lot of Pakistani bureaucrats and politicians have properties worth millions in Dubai.

“The son of a serving government officer from Sindh government invested a huge amount of money in real estate here in 2008, and I carried out transactions for him,” the agent claimed.

“Where are these politicians getting the money from?” asked a frustrated Pakistani in Dubai, who came to know that the building he lived in is owned by Ali and Hasnain Dar’s HDS Group.

“If they have billions of dollars and so much money, why is it not in Pakistan? These politicians talk about the welfare of Pakistani people, but all they can think about is themselves!”

Previously, Director Swiss Bank had stated that Pakistan has around 97 billion dollars only in Swiss Banks. But, it seems that Pakistani politicians and businessmen have more than 97 billion dollars outside Swiss Banks, invested in various countries and financial hubs like Dubai.

According to the Swiss Bank director, if the money is utilized for the welfare of Pakistan and its people, then Pakistan can make tax free budget for next 30 years, can create 60 million jobs, can carpet four lanes road from any village to Islamabad, provide endless power supply, every citizen can earn Rs. 20,000 salary for the next 60 years and there is no need to take loans from IMF or World Bank.

Courtesy: The News Tribe

http://www.thenewstribe.com/2012/08/11/we-are-billionaires-let-pakistanis-suffer/#.UEVIKpZXljs

Thar Coal Politics

Conflicting News about Thar Coal in Business Recorder – Thar Coal Politics

by: Khalid Hashmani, McLean, Virginia, USA

The politics surrounding the Thar Coal continues to confound Sindhis and other Pakistanis. Only two days ago (May 21), the newspaper Business Recorder, which is published from Karachi, said that the World Bank had withdrawn support for the Thar Coal project. Today, comes another story in the same newspaper saying that the World Bank will support the Thar Coal project. It seems that there is some manipulation going on once again in an attempt to gain control for the central government over this important asset of Sindh.

It must be noted that other than oil and gas, where Pakistani constitution requies shared control, Coal is exclusively under provincial jurisdiction.

Continue reading Thar Coal Politics

Why there is so much of noise against Kerry-Lugar bill?

by: Iqbal Tareen

There is so much of noise against Kerry-Lugar bill as if this was the first time ever Pakistan is receiving any assistance without strings attached. From the days of Baghdad Pact to SEATO, Ayub Khan’s rule to Zia’s satanic era to recent 9 years of Musharraf’s dictatorship Pakistani state, security forces, business, and urban citizens have been benefactor of begged and borrowed prosperity. It doesn’t matter who do we receive an assistance from whether it is World Bank, Friends of Pakistan, EC, Saudi Arabia, or even from Japan and China it has not been without the nod of either USA or “Soviet Union”.

Continue reading Why there is so much of noise against Kerry-Lugar bill?