The appointment came as tensions between Faye and Sonko, once close political partners, escalated over economic policy, governance and the future direction of the country. In a decree announcing the nomination, the presidency cited Lo’s experience in finance and monetary policy, emphasizing his background at the Central Bank of West African States and his expertise in managing economic challenges.

Senegal is facing mounting fiscal pressures, with public debt estimated at 132 percent of gross domestic product, one of the highest levels in the region. The government is seeking to reassure investors and international partners amid growing concerns over the country’s financial outlook.

In his first public remarks after being appointed, Lo sought to project stability, stating that Senegal remained a secure and viable destination despite ongoing political uncertainty.

The appointment follows Faye’s decision on Friday to remove Sonko from office after months of disagreements between the two leaders. Their split marks a dramatic reversal in fortunes for a political alliance that swept to power promising anti-corruption reforms, institutional change and economic renewal.

Faye’s rise to the presidency was closely linked to Sonko, whose legal troubles prevented him from contesting the 2024 presidential election. Sonko instead backed Faye, helping propel him to victory and ultimately securing his appointment as prime minister after the election.

The relationship has since deteriorated as the government grappled with economic challenges. Faye has favored engagement with the International Monetary Fund on a potential financial support program, while Sonko has advocated a more sovereign and domestically driven economic strategy.

The political confrontation is now shifting to parliament, where lawmakers are expected to vote on Tuesday on Sonko’s reinstatement as a member of the National Assembly and on the election of a new parliamentary speaker.

The move follows the resignation of National Assembly Speaker El Malick Ndiaye, a close Sonko ally, creating an opening for Sonko to assume one of the country’s most influential political positions.

Sonko’s political party, Pastef, holds a commanding majority in parliament with 130 of 165 seats, giving him a strong platform from which to challenge Faye’s authority despite no longer serving as prime minister.
Opposition leaders have sharply criticized the process. Aissata Tall Sall, head of the main opposition coalition, described the developments as an “institutional coup” and argued that Sonko should have formally resigned and resumed his legislative mandate before seeking the parliamentary leadership.

She called on Senegal’s Constitutional Council to review the matter, warning against what she described as an attempt by the parliamentary majority to impose an unlawful political outcome.

Under Senegalese law, parliament must approve the president’s nominee for prime minister within three months. Faye is also restricted from dissolving parliament until November, limiting his ability to seek a fresh legislative mandate during the current standoff.
Recent electoral reforms have further altered the political landscape by making Sonko eligible to run for the presidency in the future. The change raises the prospect that the two former allies, once united in opposition politics, could eventually face each other in a presidential contest.
The developments have introduced fresh uncertainty into Senegalese politics at a time when the government is attempting to address economic strains, restore fiscal credibility and maintain investor confidence.

IEA Executive Director Fatih Birol said that while March deliveries largely reflected cargoes loaded before the crisis escalated, the situation has shifted significantly. “During the month of April, nothing has been loaded,” he told reporters following meetings at the International Monetary Fund, adding that prolonged disruption would intensify market pressures.

Birol said the agency is tracking damage to energy infrastructure across the region, noting that more than a third of over 80 affected facilities have sustained severe damage. He described the situation as a major energy security challenge with global implications, warning that no country would be insulated from the fallout.

IMF Managing Director Kristalina Georgieva said there is an urgent need to assess the scale of economic impact stemming from infrastructure losses tied to the conflict.World Bank President Ajay Banga said the institution is preparing for multiple scenarios depending on the duration and intensity of hostilities, including expanded financial support.

The IMF has indicated it can make up to $50 billion available, while the World Bank has outlined potential financing of up to $25 billion, with the possibility of increasing total support to $60 billion over six months if conditions worsen.

The conflict, triggered by U.S.-Israeli strikes on Iran beginning February 28, has disrupted flows through the Strait of Hormuz, a critical artery for global oil shipments. Iran’s actions to impede maritime traffic, followed by a U.S. naval blockade, have heightened concerns over supply constraints and price volatility.

Although a two-week ceasefire was agreed last week to enable negotiations, talks in Islamabad failed to produce a breakthrough, raising uncertainty over whether the truce will hold.

International mediators, including Pakistan and Qatar, have urged both sides to maintain the ceasefire, while UN Secretary-General Antonio Guterres called for the restoration of freedom of navigation in the region.

Managing Director Kristalina Georgieva said the war had caused the most severe disruption to global energy supply on record, with millions of barrels of oil production shut down due to Iran’s effective closure of the Strait of Hormuz.

“Instead, all roads now lead to higher prices and slower growth,” Georgieva told Reuters, adding that the IMF would cut its growth forecasts and raise inflation projections in its upcoming World Economic Outlook.

The conflict is expected to dominate discussions at next week’s IMF and World Bank spring meetings in Washington, where policymakers will assess the economic fallout from the crisis.

The Fund had previously anticipated a modest upgrade to global growth projections before the escalation.Georgieva said global oil supply had fallen by about 13%, with knock-on effects extending beyond energy markets into supply chains for commodities such as fertilizers and helium.

Brent crude prices have risen to around $110 per barrel, reflecting tightening supply conditions.She warned that even a swift resolution would leave a lasting economic impact, while a prolonged conflict would deepen inflationary pressures and further dampen growth prospects.

The effects are expected to be uneven, with energy-importing countries facing the greatest strain. Many low-income economies lack the fiscal capacity to cushion rising costs, increasing risks of economic instability and social unrest.

Georgieva said some countries had already sought financial assistance from the IMF, which could expand existing lending programs to address urgent needs. She cautioned against broad energy subsidies, arguing they could exacerbate inflation.Energy exporters have also been affected.

Damage to production infrastructure has slowed output recovery in some countries, including Qatar, where restoration of natural gas capacity could take several years.The IMF is coordinating with other global institutions, including the International Energy Agency and the World Bank, to assess the broader implications of the conflict.

Georgieva also highlighted risks to food security, noting that disruptions to fertilizer supplies could trigger wider shortages if the conflict continues.

The World Food Programme has warned that millions could face acute hunger if conditions worsen.

In a prime-time address, Trump said the United States would “hit” Iran hard over the next two to three weeks while asserting that core military objectives were nearing completion.

However, the absence of a defined endgame unsettled investors and raised concerns about prolonged disruption to global energy supplies.

South AfricaBenchmark crude prices jumped around 5%, climbing above $106 per barrel, while equity markets declined across major regions as traders reacted to continued uncertainty over the conflict and the closure of the Strait of Hormuz, a critical route for global oil shipments.

Trump reiterated that U.S. forces were “on track” to complete their objectives “very shortly,” and said Iran had been “essentially decimated,” while warning that further escalation remained possible if Tehran did not meet U.S. demands.

He also suggested potential strikes on key infrastructure, including energy facilities. Despite the aggressive rhetoric, diplomatic prospects remain limited. A senior Iranian source told Reuters that Tehran is seeking a guaranteed ceasefire before halting attacks and confirmed that no indirect talks on a temporary truce have taken place.

The ongoing conflict, which began after U.S.-Israeli strikes on Feb. 28, has disrupted global oil flows and heightened geopolitical risk across the Middle East. Iran’s effective blockade of Hormuz has constrained shipments that typically account for about one-fifth of global oil and gas trade, amplifying volatility in energy markets.

Market participants said Trump’s speech failed to reassure investors seeking clarity on how and when the conflict might end, with uncertainty over supply disruptions and military escalation continuing to drive price swings.

International financial institutions, including the International Monetary Fund, World Bank and International Energy Agency, have warned that the war is having significant and uneven global economic impacts, particularly on energy-importing countries.

In a televised address, Trump said U.S. forces had delivered “swift, decisive” results during 32 days of operations launched after joint U.S.-Israeli strikes on Iran on Feb. 28. He added that Washington was “on track to complete all of America’s military objectives shortly,” while warning of further heavy attacks if no agreement is reached.

The conflict has triggered widespread regional instability, with Iranian retaliatory strikes targeting Israel, U.S. bases and Gulf states, and opening a parallel front in Lebanon. Thousands have been killed across the region since the escalation began.

Trump reiterated that the U.S. military campaign aimed to neutralize Iran’s strategic capabilities, including its nuclear program, saying recent strikes had prevented Tehran from obtaining nuclear weapons. He did not provide evidence to support the claim.Despite the escalation, diplomatic prospects remain uncertain.

A senior Iranian source told Reuters that Tehran is demanding a guaranteed ceasefire before halting its attacks and has not engaged in indirect talks on a temporary truce. Iran has also denied U.S. assertions that it requested a ceasefire.

Iranian President Masoud Pezeshkian, in a message addressed to the American public, said Iran holds no hostility toward ordinary U.S. citizens, though official positions suggest limited willingness to enter negotiations at this stage.The war has disrupted global energy markets, particularly after Iran effectively shut the Strait of Hormuz, a critical route for roughly 20% of global oil and gas shipments.

Trump dismissed the strategic necessity of the passage for the United States and urged allies dependent on Gulf energy supplies to take steps to reopen it.Financial markets reacted negatively to the lack of a clear diplomatic roadmap, with global equities falling and oil prices rising following Trump’s address.

The International Monetary Fund, World Bank and International Energy Agency warned the conflict was having “substantial, global and highly asymmetric” economic effects and signaled coordination on potential support measures.U.S. officials said backchannel discussions involving intermediaries, including Pakistan, were ongoing, though no breakthrough has been reported.

Trump indicated he remained open to a deal but warned that failure to reach one could result in expanded strikes, including potential targeting of Iran’s electricity infrastructure.The U.S. president also renewed pressure on allies, suggesting countries reliant on Middle Eastern energy should take a more active role in ensuring maritime security in the region.

European officials, however, have cautioned against military operations in the Strait of Hormuz, citing concerns over international law.

Trump has also raised the prospect of reassessing U.S. commitments to the NATO, criticizing what he described as insufficient support from European allies in addressing the crisis.

The agreed, subject to approval by the IMF’s executive board, would release about $1 billion under the Extended Fund Facility and an additional $210 million under the Resilience and Sustainability Facility, bringing total disbursements under the current program to $4.5 billion.

Under the broader $7 billion program, the Washington-based lender has urged Islamabad to maintain a tight and data-dependent monetary policy stance to anchor inflation expectations and reinforce foreign exchange buffers.

The IMF’s guidance comes as global energy prices rise and regional geopolitical tensions add uncertainty to Pakistan’s inflation outlook, particularly given its reliance on imports.

Pakistan’s central bank has held its benchmark policy rate steady at 10.5% this month, pausing an easing cycle as authorities weigh the risks of renewed price pressures against the need to support economic stability.

The staff-level agreement marks a critical procedural step in unlocking further funding, which analysts say remains essential for sustaining macroeconomic stability and meeting external financing needs.

Speaking after attending the fourth G20 Finance Ministers and Central Bank Governors Meeting in Washington, held under South Africa’s presidency, Al-Jadaan underlined that while the global economy faces “structural shifts,” these transitions also present opportunities for adaptation and renewal.

Accompanied by Saudi Central Bank Governor Ayman Alsayari, Al-Jadaan noted that 2025 and 2026 will be critical years for global fiscal stability.

He explained that the ongoing adjustments in monetary policies, trade relations, and technology adoption are reshaping the world economy, calling for balanced and forward-looking approaches.

“We are entering an era of transformation,” he said, “and this demands not withdrawal from global systems, but greater collaboration to strengthen trust and investment.”

The finance minister urged nations to protect and enhance the multilateral trading system, describing it as the foundation of international prosperity.

He called for collective reforms that would make global trade more inclusive, transparent, and efficient. “The solution lies not in isolation but in cooperation,” Al-Jadaan emphasized, reaffirming Saudi Arabia’s support for policies that ensure shared global progress.

Al-Jadaan highlighted fiscal discipline and sustainable public debt as “fundamental pillars” of economic resilience. He explained that governments worldwide must continue prioritizing transparency and sound governance to manage public resources effectively. “Fiscal discipline builds investor confidence,” he said, “and ensures that countries are better equipped to face external shocks.”

He also pointed out that enhanced spending efficiency is crucial to achieving long-term growth and protecting citizens from inflationary pressures. Saudi Arabia, he noted, has made significant strides in this regard through Vision 2030 reforms, which emphasize accountability, innovation, and private sector empowerment.

Addressing the rapid pace of digital transformation, Al-Jadaan said that artificial intelligence, fintech, and digital assets are reshaping global markets at an unprecedented speed. He called for proactive regulatory frameworks that strike a balance between innovation and security, ensuring that technology becomes a driver of opportunity rather than risk.

“The rise of AI and digital finance presents extraordinary potential for productivity and inclusion,” he explained. “However, it is our responsibility as policymakers to ensure these technologies are governed responsibly, promoting trust and stability.”

During discussions on Africa’s economic growth, the Saudi minister reaffirmed the continent’s growing importance to global prosperity. He called for practical and implementable solutions to reduce the cost of capital, attract private investment, and strengthen financial sustainability.

“Africa is a key partner in the future of global growth,” Al-Jadaan stated, highlighting Saudi Arabia’s deep and historic partnership with African nations. He noted that the Kingdom has financed vital projects in over 40 countries across sectors such as infrastructure, energy, and healthcare—initiatives aimed at fostering inclusive and lasting development.

He also called upon multilateral institutions to support structural reforms that enhance productivity and create the right conditions for private sector-led expansion. “True progress in Africa and beyond requires coordinated global support and long-term commitments,” he said.

In closing, Al-Jadaan emphasized that while the global economy is undergoing significant change, countries can turn challenges into opportunities through unity and innovation. “The years ahead will test our resilience, but also our capacity to cooperate and evolve,” he said. “Together, we can build an economy that is not only stable but also sustainable and inclusive.”

His message at the G20 meeting reaffirmed Saudi Arabia’s role as a proactive global partner—championing responsible growth, fiscal prudence, and technological progress. As the world navigates a rapidly evolving economic landscape, the Kingdom continues to advocate for solutions rooted in collaboration, transparency, and shared prosperity.

In contrast, Russia continues to maintain a time-tested rapport with India

As the dust settles on yet another tense standoff between India and Pakistan, a wave of introspection has swept across India’s strategic and civil circles. From geopolitical alignments to domestic cohesion, the conflict has laid bare uncomfortable truths, prompting many in India to reassess both alliances and national priorities.

One of the starkest revelations has been the geopolitical reality of international loyalties. Despite diplomatic pleasantries and economic ties, Turkey, China, and even the United States appear to consistently position themselves favorably toward Pakistan in times of heightened tensions. For India, this has raised pressing questions about the reliability of its global partnerships, especially when diplomatic neutrality could mean indirect support for hostile narratives or platforms.

In contrast, Russia continues to maintain a time-tested rapport with India, providing a semblance of consistency in an otherwise fluid global arena. While Russia navigates its own complex global relationships, its stance during South Asian crises often reflects a strategic inclination toward New Delhi—an anchor India appears increasingly dependent on.

Beyond diplomacy, the conflict has once again exposed India’s chronic weakness in information warfare. As narratives around the conflict played out across global media, India’s digital diplomacy and media engagement seemed sluggish. Pakistan’s ability to frame its position more compellingly on international platforms left many in India questioning the effectiveness of their country’s strategic communications machinery.

Adding to this frustration is the perceived silence of influential Indian voices—notably from Bollywood, elite athletes, and prominent non-resident Indians in the corporate world. During moments of national crisis, these figures often choose a neutral or muted stance, citing professional boundaries. Critics argue that their silence stands in contrast to their massive influence and the need for soft power mobilization during geopolitical flashpoints.

Yet, amidst external disillusionment and internal criticism, one aspect remains clear: in moments of war or national threat, India stands united. Across states, religions, and political ideologies, there emerges a sense of collective identity and resilience. The surge in public solidarity during conflict is a testament to the depth of national consciousness that still binds the country.

However, concerns over international financial institutions have also intensified. Observers argue that bailouts and financial packages, particularly to economically unstable states with militant linkages, risk indirectly funding destabilizing activities. While not officially acknowledged, the perception that financial support can be misappropriated is gaining traction in Indian public discourse.

The recent episode has forced India into a mirror. It reflects a nation with immense potential and unity, but also with vulnerabilities—diplomatic, informational, and strategic—that demand urgent attention. If anything, the lessons from the conflict point not just to threats from without, but also to gaps within that India must address to navigate an increasingly complex global order.

If Washington and Riyadh can seize this moment to work together, they could reshape not just Syria’s destiny but also the broader regional landscape.

Next week marks a critical juncture for Syria’s embattled leadership—a rare opportunity to step onto the global stage and present their vision for the country’s recovery. A senior delegation is set to travel to Washington D.C. to participate in the IMF and World Bank spring meetings.

The stakes could not be higher. What unfolds in this high-profile forum may well shape Syria’s future trajectory after more than a decade of devastating conflict, economic collapse, and social disintegration.

This historic opportunity is underscored by a series of quiet but significant developments behind the scenes. Saudi Arabia, once distant from Syria’s political orbit, is now actively working with the World Bank to convene a high-level reconstruction roundtable. The gathering is expected to draw influential players including the G7 finance ministers and the IMF chief, signaling a serious shift in regional and international engagement.

Importantly, Riyadh has already taken concrete steps to remove financial obstacles by settling Syria’s $15 million debt to the World Bank. This move clears a major hurdle and paves the way for Syria to access potentially hundreds of millions in reconstruction grants. The focus of these funds will be on vital sectors such as repairing the devastated electricity grid and funding public sector salaries—critical lifelines for a country struggling to maintain basic services.

Michael Arizanti, a seasoned commentator on Middle Eastern affairs, succinctly framed this emerging reality: “This isn’t about handouts — it’s about hard-headed stability. A stable Syria benefits everyone, especially in a region that has paid dearly for more than a decade of conflict, economic collapse, and mass displacement.”

Yet, Arizanti cautions that rebuilding Syria requires more than money and good intentions. The foundation of renewed international cooperation depends heavily on confidence — and that starts with sanctions relief. Syria remains shackled by punitive measures that complicate every business deal, every investment decision, and every diplomatic outreach. Without clear pathways for easing these sanctions, the prospect of reconstruction remains fragile at best.

Syria’s Central Bank Governor, Husriyeh, underscored this message in a recent interview with Reuters, highlighting his delegation’s priority at the Washington meetings, “We want to be part of the international economy. And we hope the global community will help us remove any obstacle to this integration.” His words reflect the deep urgency within Syria’s economic leadership to reintegrate into the global financial system—a prerequisite to attracting the tens of billions in investments the country desperately needs.

Echoing this perspective, Abdallah Dardari, the UNDP’s senior figure on regional development, delivered a sobering reminder, “Even suspending sanctions won’t be enough. If I were an investor putting $100 million into a power plant, I couldn’t risk sanctions snapping back next year. They must be lifted in a comprehensive and lasting way.” His insight highlights the chilling effect that sanctions uncertainty has on investment flows—essential capital that Syria needs not just to stabilize but to build a sustainable post-war future.

The significance of this moment cannot be overstated. Regional players have begun to recalibrate their approach. Last month, Qatar announced plans to supply Syria with natural gas via Jordan to alleviate the chronic electricity shortages that plague the country. This move signals a thawing of Gulf ties after years of political estrangement and hesitation, and it highlights the practical benefits of engagement over isolation.

However, progress still faces formidable obstacles—primarily emanating from within Washington. Certain factions aligned with Israeli Prime Minister Netanyahu remain deeply skeptical of re-engagement with Damascus, citing Syria’s past ties to extremist groups such as Al-Qaeda as justification to maintain a hard line.

Arizanti argues this stance is dangerously outdated: “If we’re serious about fostering peace, rebuilding institutions, and preventing the return of chaos — we must look at today’s realities, not yesterday’s headlines.”

Indeed, the path forward demands courage and pragmatism on both sides. From the Syrian government, it requires transparency, meaningful reform, and a credible roadmap toward a stable and peaceful future. From the West—especially the United States—it requires abandoning isolationist policies that have failed to bring peace and instead embracing engagement as the only sustainable strategy to break the vicious cycle of conflict and despair.

“The international community must offer a credible path back into the global system,” Arizanti insists. “Isolation has failed. Engagement is the only sustainable path to peace, stability, and reconstruction—not just for Syria, but for the entire Levant.”

If Washington and Riyadh can seize this moment to work together, they could reshape not just Syria’s destiny but also the broader regional landscape. The coming weeks will be a test of political maturity and strategic clarity. For Syria, and for the millions of Syrians yearning for peace and normalcy, this moment may be the long-awaited turning point.

The consultation highlighted Saudi Arabia’s high growth, record-low unemployment, contained inflation, and strong fiscal and external buffers.

Saudi Arabia experienced robust economic growth in 2022, making it the fastest growing economy among G20 nations. The country’s overall growth reached 8.7 percent, driven by strong oil production and a 4.8 percent growth in non-oil GDP.

Non-oil growth was fueled by robust private consumption and non-oil private investment, including giga projects. Key sectors such as wholesale and retail trade, construction, and transport were the main contributors to non-oil growth. The output gap closed in 2022, and the momentum in non-oil growth has continued into 2023.

The unemployment rate in Saudi Arabia has reached a historical low, dropping to 4.8 percent by the end of 2022, compared to 9 percent during the COVID-19 pandemic. This decline can be attributed to increased labor force participation, with more Saudi workers joining the private sector and expatriate workers returning to pre-pandemic levels, particularly in the construction and agricultural sectors.

Additionally, youth unemployment was halved over the past two years, and female labor force participation surpassed the 30 percent target set under Vision 2030, reaching 36 percent in 2022.

Inflation in Saudi Arabia remains low and appears to be easing. The average Consumer Price Index (CPI) grew by 2.5 percent year-on-year in 2022, partially contained by domestic subsidies and a strong US dollar. Although there was a slight uptick in early 2023, with headline inflation reaching 3.4 percent year-on-year, it has since settled at 2.8 percent year-on-year in May 2023. The decline in transport and food prices offset the increase in rent, contributing to the overall stability of inflation.

The country’s banking system remains strong, with a high profitability driven by net interest margins. The aggregate capital adequacy ratio is robust, and the non-performing loan ratio is low and declining. While growth in mortgages has moderated recently, the demand for project-related and consumer loans remains strong, offsetting the impact of rising funding costs linked to higher interest rates.

Saudi Arabia’s fiscal position strengthened due to favorable oil market dynamics, resulting in a surplus of 2.5 percent of GDP—the first surplus since 2013. However, additional spending that was not initially budgeted for, primarily in goods and services and capital spending, prevented a higher surplus.

Public debt stands at 23 percent of GDP, indicating a low and sustainable level, with sufficient fiscal space available to address potential challenges.

The current account improved significantly in 2022, with a surplus reaching a 10-year high of 13.6 percent of GDP. However, this surplus did not translate into a corresponding increase in official reserves due to the accumulation of assets abroad. Nevertheless, the reserves remain at comfortable levels, providing almost 20 months of import cover.

The outlook for Saudi Arabia’s economy is balanced, with both upside and downside risks. Higher oil prices, potential changes in OPEC+ oil production cuts, and accelerated structural reforms and investment could further spur growth. On the other hand, lower oil prices resulting from subdued global activity present a short-term risk.

Additionally, a rapid rise in non-oil investment could exert pressure on prices and external accounts, while a faster shift in global demand away from fossil fuels could hinder long-term growth.

The Executive Directors of the IMF commended Saudi Arabia’s economic transformation and supported the ongoing reforms under the Vision 2030 agenda. They emphasized the need for additional fiscal adjustment over the medium term to maintain stronger buffers, meet future needs, and mitigate risks from oil price volatility.

The Directors recommended further efforts to mobilize non-oil revenues, including maintaining the value-added tax rate and gradually increasing energy prices to reduce subsidies.

They also emphasized the importance of targeted social programs to protect vulnerable groups during energy subsidy reforms. The Directors welcomed the progress made in implementing structural reforms, particularly improvements in the business environment and female labor force participation.

They encouraged continued efforts to strengthen governance and accelerate the rollout of the Medium-Term Fiscal Framework and a Sovereign Asset Liability Management Framework.

The next Article IV Consultation with Saudi Arabia is expected to be held on the standard 12-month cycle.