Loans Taken from Imf
Group Members:
1. Kumail Saifee
2. Sumaiya Shafi Rahu
3. Abdul Wakeel Zaki
4. Anum Khan
5. Abad Sajid
Objectives
International Monetary Fund (IMF) was originally created to help countries with balance of payment problems. Countries which have trouble paying international bills are conducive to ruin the international financial system. For this major reason IMF lends to countries of any income group to eventually help in stabilizing the global financial market.
Pakistan is an active member of the IMF. In last decade, loans worth approximately $12.6 billion have been granted to Pakistan. Each loan that IMF grants has its own specific purpose and conditions. Unlike World Bank, IMF focuses on funding a complete program rather than a single project. In our report we will be focusing on the conditionality imposed by IMF and its subsequent affect on the economic policies of Pakistan when granting loans. These conditions serve two purposes:
1. To serve the original purpose of taking the loan; to solve balance of payment problems and stabilize the economy etc
2. To provide sufficient indication through ‘IMF influenced’ economic policies where by which the country proves its overall capability to repay the loan
Please note that these loans are made to the receiving country in certain number of installments. The installment is disbursed to the recipient once IMF agrees to a Memorandum of Economic and Financial policies developed by the recipient that is expected to meet the initial terms and conditions set by IMF.
The report will describe various loans taken by Pakistan under different programs of IMF.
The report will then emphasize on following loans granted by IMF to Pakistan in the past decade (2000- 2010);
1. December, 2001 – Poverty Reduction and Growth Facilitate credit - $1.3 bn
2. November, 2008 – Standby arrangement – eventually increased to $11.3 bn
Each loan would be focusing on the
1. Kumail Saifee
2. Sumaiya Shafi Rahu
3. Abdul Wakeel Zaki
4. Anum Khan
5. Abad Sajid
Objectives
International Monetary Fund (IMF) was originally created to help countries with balance of payment problems. Countries which have trouble paying international bills are conducive to ruin the international financial system. For this major reason IMF lends to countries of any income group to eventually help in stabilizing the global financial market.
Pakistan is an active member of the IMF. In last decade, loans worth approximately $12.6 billion have been granted to Pakistan. Each loan that IMF grants has its own specific purpose and conditions. Unlike World Bank, IMF focuses on funding a complete program rather than a single project. In our report we will be focusing on the conditionality imposed by IMF and its subsequent affect on the economic policies of Pakistan when granting loans. These conditions serve two purposes:
1. To serve the original purpose of taking the loan; to solve balance of payment problems and stabilize the economy etc
2. To provide sufficient indication through ‘IMF influenced’ economic policies where by which the country proves its overall capability to repay the loan
Please note that these loans are made to the receiving country in certain number of installments. The installment is disbursed to the recipient once IMF agrees to a Memorandum of Economic and Financial policies developed by the recipient that is expected to meet the initial terms and conditions set by IMF.
The report will describe various loans taken by Pakistan under different programs of IMF.
The report will then emphasize on following loans granted by IMF to Pakistan in the past decade (2000- 2010);
1. December, 2001 – Poverty Reduction and Growth Facilitate credit - $1.3 bn
2. November, 2008 – Standby arrangement – eventually increased to $11.3 bn
Each loan would be focusing on the