WASHINGTON — The International Monetary Fund’s executive board on Thursday approved an $8.1 billion, four-year loan for Ukraine, with $1.5 billion to be disbursed immediately to help keep the government running as its war against Russia’s invasion drags into a fifth year.

The IMF said the new Extended Fund Facility arrangement for Ukraine would help anchor a $136.5 billion international support package for the war-torn country, which this week marked the fourth anniversary of Russia’s full-scale invasion.

The new loan, which replaces a $15.5 billion program that was approved in 2023, will help Kyiv to maintain economic stability and keep public spending flowing, the IMF said.

Ukrainian Prime Minister Yulia Svyrydenko hailed the IMF loan as part of a broader financial framework that would cover an estimated budget shortfall of $136.5 billion over four years, including a 90 billion euro loan from the European Union.

“It is very important for us that in the fifth year of the full-scale war, against the backdrop of systematic attacks on the energy sector, Ukraine has guaranteed international financial support from partners and the resources for the stable functioning of the state,” she wrote on Telegram.

The World Bank, European Union, United Nations and the Ukrainian government this week issued a new report that put the cost of rebuilding Ukraine at $588 billion over the next decade.

IMF Managing Director Kristalina Georgieva said the IMF loan would resolve Ukraine’s balance of payments problem and restore medium-term external viability, while boosting prospects for reconstruction and growth after the war ended and help to facilitate Ukraine’s steps to join the European Union.

“Ukraine and its people have weathered a long and devastating war for over four years with remarkable resilience,” she said in a statement, lauding work by Ukrainian authorities to maintain overall macroeconomic and financial stability, boost domestic revenues and advance some critical reforms.

She said officials were committed to “tackling longstanding bottlenecks to growth,” including through continued efforts to combat corruption, address tax avoidance and evasion, reform energy markets, and strengthen financial market infrastructure.

The program would be “promptly recalibrated” in the case of successful peace negotiations, she said in a statement.

GROWTH SLOW, BUT INFLATION HALVED
Ms. Georgieva, who paid a surprise visit to Ukraine last month, said the war had taken a toll on economic and social conditions, despite efforts by authorities to stabilize the economy, contain inflation and restructure private sector debt. The new loan aimed to deepen structural reforms, she said.

That meant growth was slowing and the economic outlook remained “subject to exceptionally high uncertainty,” she said.

The IMF now projects that Ukraine’s economy will grow by 1.8% to 2.5% in 2026, after growth of an estimated 1.8% to 2.2% in 2025. Inflation was expected to be around 6.1% this year, half the 12.7% rate recorded in 2025, the IMF said.

Ukraine’s estimated financing gap of $52 billion in 2026 would be filled through disbursements under the newly approved IMF program, European Union arrangements, funds from the Group of Seven advanced economies and bilateral support, the IMF said.

Ms. Georgieva said a large number of IMF members, including the US, Germany, Canada, Britain and Japan, had reaffirmed their recognition of the IMF’s preferred creditor status in respect to the money it owed the Fund, and agreed to “adequate financial support” to ensure Ukraine could repay its debts to the IMF. Other countries backing Ukraine were Austria, Belgium, Denmark, Estonia, Finland, France, Greece, Iceland, Ireland, Italy, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain and Sweden, she said.

The Group of Creditors of Ukraine, which holds the majority of Ukraine’s official bilateral debt, also agreed to extend the current debt standstill and complete a definitive debt treatment after the resolution of the current state of “exceptionally high uncertainty,” the IMF said in its statement.

Ms. Georgieva said the risks to the loan were exceptionally high and the program’s success would depend on continued international support, as well as the authorities’ “steadfast determination” to implement ambitious structural reforms.

A staff report noted that progress on reforms had been mixed under the previous program, with Kyiv completing some important milestones, but missing two end-December benchmarks related to public investment management and valuation standards.

Ukraine’s progress on the program will be reviewed quarterly, with nine reviews planned over the next four years. — Reuters

OTTAWA — Canadian Prime Minister Mark Carney arrives in Mumbai on Friday on his first official visit to India, hoping to reset the sometimes fractious relationship with the world’s most populous country as he seeks new global alliances.

Mr. Carney will meet business leaders in Mumbai and start talks on a comprehensive trade agreement, which is expected to be completed by November, his foreign minister told Reuters. He is scheduled to travel on to New Delhi for talks with Prime Minister Narendra Modi.

Mr. Carney has sought closer ties with China and Middle Eastern countries as well as India, as he tries to reduce Canada’s dependence on the United States and forge a new global trading order led by what he calls middle-power countries.

Relations between Canada and India soured several years ago after explosive allegations by then-Prime Minister Justin Trudeau that the Indian government was linked to the assassination of a Canadian citizen who was also a prominent Sikh separatist. India has repeatedly denied any such links.

Unlike several previous Canadian leaders, including Mr. Trudeau, Mr. Carney will not make a stop in India’s Punjab region, a major origin of Indian migration to Canada. Sikh separatists have pushed for an independent state in the Punjab and a visit there risks irking Mr. Carney’s Indian hosts.

Analysts say the move signals a more pragmatic foreign policy that aims to wean Canada away from the United States, spurred by President Donald Trump’s tariff war and annexation threats.

“The Prime Minister has a laser-beam focus on attracting capital to Canada, not playing to the Indian diaspora back home,” said Goldy Hyder, president of the Business Council of Canada.

“This is a business trip aimed at growing the economy to give Canadians more economic sovereignty,” he said, calling the approach a significant shift from the Trudeau era.

Last month, the European Union and India reached a landmark trade deal to cut tariffs on most goods, raising expectations that India might soon sign a similar deal with Canada. India’s high commissioner to Canada told Reuters in January that Mr. Carney will likely sign a 10-year, C$2.8 billion ($2.05 billion) uranium supply deal and smaller agreements on oil and gas, the environment, artificial intelligence, quantum computing, education and culture.

NO BHANGRA DANCING
Mr. Trudeau was mocked for wearing overly elaborate Indian outfits during a 2018 visit and was publicly criticized by Prime Minister Narendra Modi for allowing “anti-India activities,” a reference to vocal Sikh separatists living in Canada.

“Carney has a sense of gravitas and is very strategic,” said Partha Mohanram, a management professor at the University of Toronto. “He’s not going to do a bhangra dance over there.”

But Mr. Carney’s approach to India has drawn criticism from some Sikh groups in Canada.

“The Carney government has failed to hold India accountable or to create any meaningful safeguards to ensure that Sikh Canadians are protected from foreign interference and transnational repression,” the World Sikh Organization of Canada said in a statement on Wednesday.

Canadian Foreign Minister Anita Anand told Reuters there have been conversations between Canada and India at the highest levels regarding concerns about criminal activity with possible links to India. Ms. Anand said there were new measures to track criminal money, digital threats, and surveillance of diaspora communities.

Ms. Anand said Mr. Carney’s foreign policy was driven by the reordering of global trading relationships and that “no country will ever have a pass in terms of the domestic safety and security of this country.”

FENDING OFF AMERICAN HEGEMONY
After India, Mr. Carney will visit Australia, where he will address parliament and discuss military, trade and defense links. En route back to Ottawa, Mr. Carney will meet Japanese Prime Minister Sanae Takaichi and talk about boosting trade in autos, energy, and critical minerals.

Jonathan Kalles, a former adviser to ex-Prime Minister Trudeau, said Mr. Carney’s agenda was defined by the new geopolitical order he outlined in his Davos speech, where he called for middle powers to adopt a “principled and pragmatic” path to fend off American hegemony.

“When the world is nice and calm, you can try to change the world and talk about virtues,” he said. “But when you’re living in uncertain times, the Prime Minister’s job is to advance the country’s interests and Mark Carney knows very well his job is to diversify our trade and strengthen the economy.” ($1 = 1.3684 Canadian dollars) — Reuters

KABUL/ISLAMABAD — Pakistan bombed Taliban government targets in Afghanistan’s major cities overnight, officials from both countries said on Friday, with Pakistan’s defense minister calling the conflict “open war”.

Security sources in Pakistan said the strikes involved air-to-ground missile attacks on Taliban military offices and posts in Kabul, Kandahar and Paktia as well as ground clashes in multiple sectors along the border between the Islamic nations.

The Taliban said it launched what it described as retaliatory attacks on Pakistani military installations.

Both sides reported heavy losses, issuing sharply differing figures that Reuters could not independently verify.

“Our cup of patience has overflowed. Now it is open war between us and you (Afghanistan),” Pakistani Defense Minister Khawaja Muhammad Asif said on Friday.

Relations between Kabul and Islamabad have been strained by a long-running dispute over Pakistan’s accusation that Afghanistan harbors militants carrying out attacks across the border. The Taliban have denied the charge and said Pakistan’s security is an internal problem.

The strikes on Taliban government installations are a major escalation, and threaten a protracted conflict along the 2,600-kilometer (1,615-mile) frontier.

Taliban spokesperson Zabihullah Mujahid confirmed Pakistani forces carried out air strikes in parts of Kabul, Kandahar, and Paktia but did not give details.

Kandahar is the headquarters of the Taliban and the city where supreme spiritual leader Haibatullah Akhundzada is based.

Video shared by Pakistani security officials showed flashes of light in the night from firing along the border and the sound of heavy artillery. A video of strikes on Kabul, for which Reuters was able to verify the location, showed thick plumes of black smoke rising from two sites and a massive blaze in part of the capital.

Another video showed a building on fire, which the officials said was a Taliban headquarters in Paktia province.

“Pakistani counter-strikes against targets in Afghanistan continue,” a Pakistani government spokesperson, Mosharraf Zaidi, said in a post on X, describing the action as a response to “unprovoked Afghan attacks.”

Reuters witnesses in Kabul said many ambulance sirens could be heard following loud blasts and the sound of jets.

Mr. Zaidi said 133 Afghan Taliban fighters were killed and more than 200 wounded, with 27 posts destroyed and nine captured.

Mr. Mujahid, the Taliban spokesperson, said 55 Pakistani soldiers were killed and 19 posts seized, while eight Taliban fighters were killed, 11 wounded and 13 civilians injured in Nangarhar province.

HIGH SECURITY
Pakistan’s military capabilities are vastly superior to Afghanistan. However, the Taliban are adept at guerrilla warfare, hardened by decades of fighting with US-led forces, before returning to power in 2021.

Clashes between Pakistan and Afghanistan in October killed dozens of soldiers until negotiations facilitated by Turkey, Qatar, and Saudi Arabia brought an end to the hostilities.

Pakistan and Saudi Arabia’s foreign ministers spoke on Friday to discuss reducing tensions, Riyadh’s foreign office said without providing details on whether Riyadh was involved in brokering a ceasefire.

Russia, the only country to formally recognize the Taliban government, called for an end to hostilities and said it would consider mediating talks if asked by both parties, state media reported citing Moscow’s foreign ministry.

Pakistan has been on high security alert since it launched air strikes earlier this week that Islamabad said targeted camps of Tehreek-e-Taliban (TTP), or Pakistani Taliban, and Islamic State militants in eastern Afghanistan.

Kabul and the United Nations said the strikes killed 13 civilians and reiterated it does not allow militants to operate from its territory. The Taliban also warned there would be a strong response.

The government of Pakistan’s Punjab province said it was on high alert for militant attacks on Friday and had conducted a series of security operations, taking 90 Afghan nationals to holding centers for deportation.

A state-run media outlet from Afghanistan’s Nangarhar, Bakhtar News Agency, shared an image of what it said was a battalion of suicide attackers, and quoted an Afghan security source as saying the bombers were equipped with explosive vests and car bombs and were prepared to strike major targets.

Pakistani officials have said in recent days they feared an escalation of militant strikes in urban centers. — Reuters