Essay On Imf

International monetary fund

The IMF consists of 186 countries which has objectives such as: global monetary cooperation development, financial stability, endorse and facilitate international trade, encourage employment and economic growth in a sustainable way and mainly to eradicate poverty around the world; mostly in developing nations.

The goal and mission is to aid in the smooth sailing of the international system. This is handled in three points: global economy and member countries’ economies need to be kept track of, giving help to member countries who have problems with their balance of payments and by practically offering to help members.

World Bank

The World Bank is among the biggest organization for funding of school investments,

Even though the IMF’s operations may seem to complement the World Bank’s but they both are entirely separater and disjointed organizations. The World Bank supports developing countries and the IMF stabilizes the international monetary system and world currencies.

Imf assistance to Pakistan

The borrowers have to make sure their policies are made the way the IMF authorities directs them to be. The IMF has to check the economic conditions of the borrowing member when advancing loans also.

Pakistan joined IMF on 11th July, 1950. Since 1952, the IMF is provides financial assistance to Pakistan. Pakistan has borrowed 1193 million dollars from IMF. Since 1980, four agreements with Pakistan have been made:

1. November,1980

2. December, 1988

3. February, 1994

4. July, 1997

1. THE AGREEMENT OF

Even though the deficit was 8.7% of the 1990-91 GDP and the fact that it decreased to 8% of the GDP of 1992-93, the decrease was not to the satisfaction of the IMF.

3. THE AGREEMENT OF 1994:

The target of this agreement was that the deficit should fall to 4% of the GDP in 1994-95. And to further dip to 3% of the GDP from 1995-96. However, in December 1995 the terms were changed due to renegotiation and the new goal was to reduce the deficit to 5% of the 1994-95 GDP. Again the IMF pressed as it did earlier to increase the prices of education, gas, health services, electricity and water.

The deficit did not meet the goal and was 5.8% of the 1994-95 GDP, the target was supposed to be 5% of the GDP. The $1.4 billion loan did not materialize because of suspension due to failure to meet the conditions previously agreed upon. After renegotiation a new contract was written and the deficit could only be as high as 4% of the GDP of 1996-97. But the date was extended to September of the same year instead of February of the same year and the amount of money was increased to $850 million, a $600 million