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BIG STORY                                                                 MAY 27, 2022  |    The Indian Eye                     5

         Finance Minister Nirmala Sitharaman chairing the 7th Annual Meeting of the Board of Governors of   People have been protesting against inflation across
                           New Development Bank on Saturday (ANI)                                       the country (ANI)

            Sitharaman said the Prime Min-  dence in 1948. A crippling shortage   tion of the powerful Rajapaksas.  has decided to ban the import of 10
        ister has specifically asked all arms of   of foreign reserves has led to long   On the other hand, Nepal is un-  different luxurious goods.
        the government to work with sensitivi-  queues for fuel, cooking gas, and   dergoing a serious financial crisis with   In recent days, with inflation close
        ty and give relief to the common man.   other essentials while power cuts and   foreign reserves falling down in wake   to 13 per cent and food prices sky-
        “Keeping in line with @PMOIndia @  soaring food prices heaped misery on   of elongating Russia-Ukraine crisis.   rocketing, Pakistan is said to be head-
        narendramodi’s commitment to help   the people. The economic crisis has   The government is  making attempt   ing towards a Sri Lanka-like crisis.
        the poor and common man, Today,   also triggered a political crisis in Sri   to reduce the consumption of fuels to   It is a crisis all South Asian na-
        we are announcing more steps to help   Lanka and a demand for the resigna-  preserve the foreign reserve and also   tions, including India, want to avoid.
        our people. Even during the pandem-
        ic, our government set a paradigm
        of welfare, especially with PM Gar-  G7 countries determined to rein in rising inflation
        ib Kalyan Anna Yojana. This is now
        acknowledged and appreciated the                                                             he Group of Seven (G7) countries are de-
        world over,” she said.                                                                       termined  to  rein  in  the  spiralling  inflation,
            Meanwhile, as the economic cri-
        sis grapples with various South Asian                                                   TGerman Finance Minister Christian Lindner
                                                                                                said on Friday.
        countries including Nepal, Sri Lanka,                                                       Speaking at a press conference after the G7
        and Pakistan, the three countries in-                                                   finance  ministers  and  central  governors  meeting
        cluding the United States, India, and                                                   held in Germany, Lindner called on central banks
        China have come forward to rescue                                                       to bring down the surging inflation. “Across most
        the nations.                                                                            G7  countries,  inflation  rates  have  reached  levels
            The  recent  financial  crunch-
        es in hardest-hit Sri Lanka which                                                       not seen for decades,” said a communique released
                                                                                                after the meeting.
        has almost no petrol left, Nepal                                                            “G7 central banks are closely monitoring the
        struggling with power outages,                                                          impact  of  price  pressures  on  inflation  expecta-
        and Pakistan which is also grap-                                                        tions and will continue to appropriately calibrate
        pling  with  the  soaring  inflation.                                                   the pace of monetary policy tightening in a da-
            India on Saturday provided an-
        other 40,000 metric tonnes of diesel to                                                 ta-dependent and clearly communicated manner,
                                                                                                ensuring  that  inflation  expectations  remain  well
        Sri Lanka under the credit line facili-                                                 anchored, while being mindful to safeguard the re-
        ty to the island nation which is grap-                                                  covery and limit negative cross-country spillovers.”
        pling  with  its  worst  economic  crisis.                                                  Joachim Nagel, chief of the German central
            Last month, India extend-
        ed an additional USD 500 million                                                        bank, Bundesbank, also voiced his concern about
                                                                                                inflation while hosting the press conference with
        credit line to help Sri Lanka im-                                                       Lindner.
        port fuel as the country has been                                                           Earlier  this  month,  Nagel,  also  European
        struggling  to  pay for imports af-                                                     Central Bank (ECB) governing council member,
        ter its foreign exchange reserves                                                       explicitly proposed that the ECB should end bond
        plummeted sharply in recent times.                                                      purchases as the first step at the end of June and
            “Pumping diesel into #SriLan-
        ka!!! Another 40,000 MT consignment                                                     start raising interest rates in July.
                                                                                                    The  G7  ministers  and  governors  reaffirmed
        of  diesel  under  the  credit  line  from                                              their financial support for Ukraine at the Peters-
        #India reached #Colombo today. In-                                                      berg meeting. They also revealed that the G7
        dia’s High Commission has tweeted.   The Modi government is trying to tame the inflation by providing subsidies   countries have mobilized 19.8 billion US dollars of
            Sri Lanka is going through the     as the Ukraine war creates food and fuel crisis in South Asia (ANI)
        worst economic crisis since indepen-                                                    budget support to help Ukraine in 2022.

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