Morning Consult Global: Pakistan Seeks U.S. Support for Bailout Amid Foreign Reserve Crisis


Essential news & intel on how business, politics and economics intersect around the world to start your day.
January 26, 2023
Twitter Email

Today’s Top News

  • Pakistan has asked the United States for help unlocking $1.1 billion in International Monetary Fund bailout money granted last year which has been stalled as Islamabad failed to meet budgetary conditions attached to the loan. (Reuters) The country is in a severe financial crisis, with a shortage of foreign currency reserves grinding the economy to a halt, exacerbated by rolling blackouts and political turmoil. (Financial Times)
  • Russia launched another wave of missile and drone attacks across Ukraine just after a breakthrough among many Western allies on an agreement to provide Kyiv with modern tanks. Kremlin spokesperson Dmitry Peskov said Moscow views the decision to arm Kyiv with tanks “as direct involvement in the conflict.” (The Associated Press)
  • International Atomic Energy Agency chief Rafael Grossi warned that Iran has enriched enough uranium to build “several nuclear weapons” and urged the signatories to the abrogated 2015 Iran nuclear deal to resume negotiations to prevent Iran from constructing a bomb. Grossi will head to Tehran next month for urgent talks, though he admits the agreement he’s trying to salvage is “in very bad shape” and “an empty shell.”  (CNN)
  • Twenty-eight left-wing lawmakers in Peru have moved to impeach President Dina Boluarte, citing her “permanent moral incapacity,” after a month of intense unrest following her ascendance and the arrest of former President Pedro Castillo. The motion will need to clear a 52-vote threshold to be eligible for debate in Congress, and it requires two-thirds support for Boluarte’s removal. (Reuters)

Happening today:



Chart Review


What Else You Need To Know


IMF warns of market impact of abrupt Bank of Japan policy change

Kana Inagaki, Financial Times 

Fund points to ‘significant upside risks’ to inflation and calls for flexible approach to controlling bond yields.


Admiral Gorshkov: Russian frigate armed with hypersonic missiles to conduct naval exercises with China, South Africa

Radina Gigova and Simone McCarthy, CNN 

A Russian warship armed with advanced hypersonic missiles completed a drill in the Atlantic Ocean, ahead of joint naval exercises with the Chinese and South African navies scheduled for next month, the Russian Defense Ministry said Wednesday.


Populations around the world are declining. Migration is the solution, says economist

Ari Shapiro et al., NPR 

Ari Shapiro talks with developmental economist Lant Pritchett about how migration could offset the economic consequences of global demographic changes.


As India Tries to Block a Modi Documentary, Students Fight to See It

Sameer Yasir, The New York Times 

Officials at a public university cut the electricity before a planned screening, and the government has prevented clips from appearing online.


China’s mining ambitions in Afghanistan haunted by militants

Mifrah Haq, Nikkei Asia 

ISIS-K steps up threats and attacks as Beijing eyes oil and copper.


Kishida to consider visiting Ukraine if right conditions are met

Kyodo via Japan Today 

Japanese Prime Minister Fumio Kishida said Wednesday that he will consider visiting Ukraine to hold talks with President Volodymyr Zelenskyy if the right conditions are met.


China is trying to win over Westerners and private firms

The Economist 

But Xi Jinping is unlikely to change.


Taiwan’s Tsai Ing-wen names new premier to shore up support

Kathrin Hille, Financial Times 

Former vice-president Chen Chien-jen credited with successful early response to Covid.


India raises $1bn from maiden green bond sale

John Reed, Financial Times 

Debt earmarked for environmental projects achieves lower borrowing cost than conventional bonds.


China cites US debt issue to deflect pressure on Africa debt 

The Associated Press 

The Chinese government says the United States should stop pressuring it on debt relief for Zambia and focus on averting a government default at home with possible repercussions for the global economy.


A Russian graveyard reveals Wagner’s prisoner army

Felix Light et al., Reuters 

A rapidly expanding cemetery in a southern Russian village offers insight into the convicts who are fighting – and dying – for the secretive mercenary army of Wagner Group.


EU wants to send more people back to Africa, Middle East, Asia

Gabriela Baczynka, Reuters 

European Union migration ministers meet on Thursday to discuss visa restrictions and better coordination inside the bloc to be able to send more people with no right to asylum in Europe back to their home countries including Iraq.


Manpower will be crucial for Russia to mount a spring offensive

Jamie Dettmer, Politico 

Moscow will need many more combat soldiers to achieve the three-to-one ratio necessary for an attacking force.


Greek government to face no-confidence vote over wiretapping scandal

Eleni Varvitsioti, Financial Times 

Opposition leader reveals figures named in independent report, increasing pressure on PM Kyriakos Mitsotakis.

Latin America

Colombia’s once most-wanted drug lord pleads guilty in US

Jennifer Peltz, The Associated Press 

A Colombian man who was once one of the world’s most-wanted drug lords pleaded guilty Wednesday to U.S. smuggling charges, admitting that he led a cartel and paramilitary group that trafficked in cocaine and deadly violence.

Middle East and Africa

As Turkey Elections Loom, Erdogan Fights for Political Future

Ben Hubbard, The New York Times 

President Recep Tayyip Erdogan is trying to soften the blow of inflation on the population and using legal threats to bolster his position ahead of a vote that could reshape his country.


Turkish officials call Pompeo a liar and say he had a ‘meltdown’ outside Erdogan’s door

Ragip Soylu, Middle East Eye 

Former US secretary of state’s claims in recent memoir draw sharp rebukes from Ibrahim Kalin and Mevlut Cavusoglu.


Azerbaijan sues Armenia for wartime environmental damage

Isabella Kamisnski, The Guardian 

Case brought under Bern convention on nature may set precedent for destruction of biodiversity in war.


Children go hungry at Kenya refugee camp as malnutrition numbers soar

Caroline Kimeu, The Guardian 

MSF charity reports 33% rise in malnourished patients at giant Dadaab complex after influx from drought-stricken Somalia.


Netanyahu’s chaotic first month

Barak Ravid, Axios 

Mass protests. International condemnation. The sacking of a trusted minister. Israeli Prime Minister Benjamin Netanyahu’s first month in office has been nothing short of chaotic.

North America

Veterans of the Obama-era debt ceiling standoff on the current one: We may be doomed

Adam Cancryn and Eugene Daniels, Politico 

Financial experts and political operatives experiencing debt ceiling déjà vu fear this time around, the ending could be catastrophic.


Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Missy Ryan, The Washington Post 

Administration officials now point to intensified opposition in Congress as a chief outcome of OPEC’s decision to slash output ahead of last year’s midterm elections.


Bank of Canada Raises Rates, Declares Pause to Assess Economic Impact

Paul Vieira, The Wall Street Journal 

Canada’s main interest rate increases to 4.50%, the highest level in over 15 years.


Republicans launch newest fight against Biden’s oil drawdowns

Josh Siegel, Politico

A bill to limit releases from the Strategic Petroleum Reserve seeks to blunt the political gains that Democrats have gained from lower gasoline prices.

Morning Consult