International Monetary Fund says Pakistan has not asked it for a bailout so far

The fund left its 2018 U.S. forecast unchanged but cut its expectation for next year, citing the impact of the trade conflict.

The International Monetary Fund has warned a trade war between the U.S. and China risks making the world a "poorer and more risky place" in its latest assessment of the global economy.

When the world´s two biggest economies - the United States and China - are "at odds", that is going to create "a situation where everyone is going to suffer", Obstfeld said.

"The likelihood of further negative shocks to our growth forecast has risen", he said.

Addressing a news conference at the International Monetary Fund and World Bank annual meetings in Bali, the IMF's Maurice Obstfeld cautioned that increased Chinese involvement in Pakistan's economy could bring both benefits and risks.

Still, the trade disputes sparked by President Donald Trump that have led to tit-for-tat exchanges of tariffs among major trading partners are affecting China, other Asian economies and more vulnerable countries like Argentina and Turkey, along with Brazil.

A Western trade bloc would help United States strategy to curb Chinese growth and expansionism, Sondland said.

The Dow Jones Industrial Average fell 17.59 points, or 0.07 per cent, at the open to 26,469.19.

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The IMF's cut to its outlook was broad-based.

The UK economy is expected to grow by 1.4 percent this year - down from April's prediction of 1.6 percent - while predicted growth for 2019 remains at 1.5 percent, a slowdown from 1.7 percent in 2017.

Speaking to journalists in Bali, the Deputy Director, Research, IMF, Gian Maria Milesi-Ferretti, said the largest economies on the continent were holding down economic development in Africa as a result of poor growth rate.

Pakistan's fiscal deficit was on target to hit 7.2 percent of gross domestic product in the fiscal year ending in June 2019, but the government has introduced measures to bring it closer to 5 percent.

The IMF maintained a previous forecast for growth of 6.6 percent for 2018.

It found that global GDP output under this scenario would fall by more than 0.8 percent in 2020 and remain roughly 0.4 percent lower in the long-term compared to levels without these effects, which "inflict significant costs to the global economy, especially through its impact on confidence and financial conditions".

Instead, the Chinese maintain, they have boosted the country's economic growth and provided 70,000 jobs.

"The provision of 10 million jobs and millions of housing units might become the victims as it will become hard to pursue the projects under the tight noose of the International Monetary Fund scrutiny", said one independent economist and added that the International Monetary Fund would pursue one shoe fit for all policy under which the sacrosanct targets of budget deficit and current account deficits would be curtailed by comprising growth and hiking inflationary pressures. In several key economies, moreover, growth is being supported by policies that seem unsustainable over the long term. The IMF also warned the new government that growth would likely slow and inflation rise further if it does not act fast.

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