• International Monetary Fund (IMF), an international
financial institution, was founded and started working in
1945, consisting of 190 countries today
• An international financial institution, working towards
global economic development and stability
IMF
introduction
• Headquartered in Washington, DC
• Current MD is Bulgarian economist, Kristalina Georginio,
and chief economist is Gita Gopinath
• United Nations is the parent organization
• The member countries contribute to a funds pool
through a quota system, the size of the quota
depending on the economic situation of the country,
in addition to its periodic dependency for funds to
world bank, which is further utilized and loaned out
to countries in need
• As of 2016, the institution had a $ 667 B, as of today
it is round about $ 1 T
How IMF
works/is run
• When a country borrows from IMF, the institute’s
established economic policies are given to the
country which should be followed not only to make
sure the loan would be paid back, but also to make
sure the country would not find itself in the current
economic situation again
• IMF charges a fixed rate on the loan it lends to
countries, which need to be returned with the
principal amount to the institution, which can be
anything between 2-5%, depending on different deals
and arrangements
• IMF annually releases its managing agenda, which is
mostly related to policy improvement (Agenda)
• 2020 agenda was “catalyzing a resilient recovery”,
looking at the pandemic situation (Agenda)
• Global monetary cooperation (Goals)
Goals/Agenda
of IMF
• Global economic stability
• Growth of international trade
• Promotion of high employment rates
• Reduce poverty
• Sustainable economic growth
• Helping countries facing economic crisis
• IMF has responded with urgency to aid the countries most
vulnerable with;
• Emergency financing
IMF’s response
to covid-19
• Grants for debt relief
• Adjusting existing lending arrangements
• Policy advice
• Capacity development
• World Bank and the IMF are twin intergovernmental pillars
supporting the structure of the world's economic and
financial order
IMF VS World
Bank
• World bank is primarily a development institution.
• IMF is a cooperative institution; its structure is smaller than
the world bank.
IMF in Pakistan
• IMF has helped Pakistan with loans and money policy several times, but Pakistan has not
been able to meet the payment dates in recent times, which has caused the country’s
economy to face challenges
• On February 25, 2021, Pakistan was decided to remain in the grey list countries until at
least June by FATF (Financial Action Task Force), despite significant improvements were
shown and reported, but not enough
• Recently in 2019, as a part of the loan back in 2014, Pakistan entered the IMF $ 6B
program, which the country must pay under the agreed terms and conditions
• The latest NEWS we had in the last 10 days was from Pakistan Muslim League-N (PML-N)
Secretary General Ahsan Iqbal Friday who claimed the government was enacting such a law
which would hand over the State Bank of Pakistan (SBP) control to the International Monetary
Fund (IMF) and other international financial institutions
Thank you!