Biz Updates: Sri Lanka receives fourth instalment of relief package from IMF; Pakistan’s tax deficit rises to 606 billion

New Delhi| The International Monetary Fund (IMF) has agreed to release a fourth installment of $334 million from its US$2.9 billion relief package to Sri Lanka to overcome the 2022 economic crisis. The IMF’s Executive Board on Friday approved the release of the fourth instalment after Sri Lanka completed its third review under the 48-month Extended Fund Facility (EFF) arrangement.

The global lender said it would release about $334 million to the crisis-hit country, bringing total funding to about $1.3 billion. The IMF said Sri Lanka has performed well under the programme.

Meanwhile Pakistan’s tax deficit increased to 606 billion Pakistani rupees (189.45 billion Indian rupees) in the first eight months of the current fiscal year. Giving this information in a media report, it was said that in such a situation, pressure has increased on the officials to violate the promises made with the International Monetary Fund. IMF has given a loan of seven billion US dollars to Pakistan, but has imposed strict conditions for this, including increasing tax collection.

Growth rate of eight major basic industries of the country
The growth rate of eight major basic industries of the country increased to 4.6 percent in the month of January. It was 4.2 per cent in the same period a year ago and 4.8 per cent in December, 2024.

According to data released on Friday, coal production rose by 4.6 percent, steel by 3.7 percent and electricity by 1.3 percent in January this year. These industries had grown by 10.6 per cent, 9.2 per cent and 5.7 per cent respectively in the same period last year. However, the production of finery products, fertilizers and cement increased to 8.3 per cent, three per cent and 14.5 per cent respectively. The growth rate of basic industries during April-January in the current financial year was 4.4 percent. In the same period of 2023-24, the growth rate of these industries was 7.8 percent. Eight major industries account for 40.27 per cent of the index of industrial production.

Exports to America may decrease by Rs 61,000 crore
India’s exports to the U.S. could decline by $2 to $7 billion (Rs 61,000 crore) in 2025-26 if Donald Trump applies reciprocal tariffs. India’s exports to the U.S. rose 5.57 percent to $59.93 billion between April and December, India Ratings said. On the other hand, imports have increased by 1.91 per cent to $33.4 billion.

According to the report, the US has been India’s largest trading partner from 2021-22. It has accounted for about 18 per cent of India’s total merchandise exports, more than 6 per cent of imports and about 11 per cent of bilateral trade.

Flipkart closes ANS Commerce, layoffs of employees
E-commerce major Flipkart has closed its unit ANS Commerce and laid off its entire workforce. Founded in 2017, the firm was providing all kinds of support, including marketing tools, warehousing, etc. to entities that wanted to sell their product online. It was acquired by Flipkart in 2022. When contacted, Flipkart confirmed this decision.