International Monetary Fund is an organization to support the less developed countries. It’s structure and functions is as under: IMF consists of 190 countries of the world. It’s main objects are divided into three phases:
- The fostering Monetary cooperation
- Encouraging the expansion of trade
- Discouraging the policies that would harm prosperity
It should be considered that the IMF stands for works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world. The role of IMF in globalization is very matured that it promotes global macro-economic and financial stability and provides policy advice and capacity development support to help the countries build and maintain economies. So, the IMF is a major financial agency of the United Nations and an international financial institutions having it’s headquarter in Washington DC United States.
We see that 7 states are not the member of IMF which are: Cuba, North Korea, Monaco, Taiwan, Vatican City, East Taimur and Liechtenstein.
ROLE IN PAKISTAN:
Pakistan has been a member of IMF since 1950. Unfortunately, Pakistan’s economic conditions had been shattered for the last 4 decades and the situation is still the same. The whole Nation has to bear the destructive and bad economic effect. In the current running years, Pakistan is under the heavy burden and pressure of foreign loans. Whenever Pakistan tries to overcome it’s economic conditions, it has to approach the IMF for further loans. In the light of our worst economic positions, the IMF imposes the special conditions on Pakistan which are not in favor of the nation. Pakistan’s 40% population is under the line of poverty. The whole nation becomes the victim of it’s bad consequences. For the last four years, Pakistan economy was badly shattered and the danger of default was ahead. After the outgoing government, the sitting rulers are trying very much to overcome the situation but these rulers have to bow their heads before the IMF conditionalities.
Due to the unpredictable nature of its economy and its dependence on imports, the IMF has provided loans to Pakistan on 22 occasions with it’s most recent being in 2019. In the covid times, Pakistan got some relaxations to pay the loans. The sister countries like Saudi Arabia, China, UAE and Qatar helped us by giving loans and guarantees. Now the IMF is going to consider maximum support to Pakistan. In these days, people of Pakistan are facing huge economic crisis due to the imposition of conditions of IMF. Our industry and trade are not in the position for promotion. The IMF has not budged from its demands and Pakistan’s delay in providing some commitments has only damaged trade and economic prospects. It is clear that, the IMF resumption is very much necessary to kick start our economy and work on moving towards the path of recovery. It is hoped that the government can now enter the final stage of this long dialogue and normalize economic activities in Pakistan once again.
It is essential to mention here that US is a sole power to use IMF as a tool against some states according to her wishes. It is believed that US has some reservations on growing relations between Pakistan and China, specially focusing on CPEC and establishing deep sea-port of Gwadar. But it is still hoped that the final funding of IMF can be secured as soon as possible.
HUMA MUSSARAT
LAHORE
