Pakistan has been a member of the International Monetary Fund (IMF) since 1950. [2] Due to the high unpredictable nature of its economy and its dependence on imports, the IMF has provided loans to Pakistan 22 times, with its most recent being in 2019. [3]
Pakistan joined IMF on 11 July 1950 as newly established country was facing fiscal problems since its creation in 1947 from British India.
In 1958, for the first time, Pakistan went to IMF for bailout. For this, IMF lent out US$25,000(equivalent to $253,576 in 2022) [originally the loan-amount is given in SDR; [4] for this article it is considered to be 1SDR = 1USD] to Pakistan on standby arrangement basis on 8 December 1958. [3] Pakistan again went to IMF in 1965. This time, IMF gave US$37,500(equivalent to $348,231 in 2022) to war-torn nation on 16 March 1965. [3] Three years later, Pakistan again went to IMF for third time for balance of payment problems for which IMF gave US$75,000(equivalent to $631,148 in 2022) on 17 October 1968. [3]
In 1971, Pakistan lost its Eastern half, East Pakistan, after the Bangladesh Liberation War. This war caused huge loses to Pakistan. For which, Pakistan got loan of US$84,000(equivalent to $587,666 in 2022) in 1972, US$75,000(equivalent to $494,415 in 2022) in 1973 and another of US$75,000(equivalent to $445,040 in 2022) in 1974 to meet its growing needs. [3] In 1977, another standby arrangement of US$80,000(equivalent to $386,337 in 2022) was made on urgent basis. [3] Three years later, an extended facility of US$349,000(equivalent to $1,239,542 in 2022) was reached in 1980. Struggle of Pakistan continued, as Pakistan withdrew another US$730,000(equivalent to $2,349,788 in 2022) in 1981 as Pakistan was already part of US cold war against Soviet Union. [3]
Another era was started, as democracy came back to Pakistan but old ways to handle economy poorly continued. Benazir Bhutto government withdrawn US$194,480(equivalent to $481,220 in 2022) as standby arrangement and another US$382,410(equivalent to $946,233 in 2022) in shape of structural adjustment facility commitment - both on 28 December 1988. [3] In 1990, government of Nawaz Sharif decided against going to IMF instead arranged donations from friendly countries like Saudi Arabia.
In 1993, Benazir Bhutto again came to power and her government again went to IMF and reached an agreement to get standby arrangement of US$88,000(equivalent to $178,270 in 2022) on 16 September 1993. [3] Poor handling of economy continued by her government as she got loan of US$123,200(equivalent to $243,247 in 2022) under the extended fund facility and another US$172,200(equivalent to $339,993 in 2022) were borrowed - both on 22 February 1994. [3] During that period economy of Pakistan remained in poor shape and Pakistan had to go to IMF again for record third in the period of Bhutto government. [3] As per few sources, this was the most corrupt government in the history of Pakistan. This time Pakistan got an amount of US$294,690(equivalent to $565,954 in 2022) on 13 December 1995. [3]
In 1997, Nawaz Sharif came to power. Benazir Bhutto government was sacked on the corruption charges and left economy of Pakistan in worst shape. Sharif government went to IMF on urgent basis for the first time and reached an agreement to get two amounts of US$265,370(equivalent to $483,761 in 2022) and US$113,740(equivalent to $207,344 in 2022) on October 20, 1997. [3]
On 29 November 2000, an amount of US$465,000(equivalent to $790,186 in 2022) was drawn as standby arrangement. [5] One year later, Pakistan again went to IMF for US$861,420(equivalent to $1,423,666 in 2022) under the extended fund facility on 06 December 2001. [5]
In 2008, Yousaf Raza Gillani received the largest-ever US$7.6(equivalent to $10.33 in 2022) billion loan from the IMF, [6] however a total sum of $4,936,035 had been withdrawn. [5]
Pakistan was provided by the IMF with financial assistance amounting to US$4,320,000(equivalent to $5,427,154 in 2022) through an Extended Fund Facility on September 04, 2013. [5]
In 2018, Imran Khan became Prime Minister of Pakistan. For this, they arranged friendly loans from Saudi Arabia, United Arab Emirates and China to avoid tough IMF conditions. [7] In 2019, when economic conditions worsened, they went to IMF for the twenty-second time for a loan of US$1 billion. [8] IMF gave loan based on conditions such as hike in energy tariffs, removal of energy subsidy, increase in taxation, privatization of public entities and fiscal policies to the budget. [7]
On 30 June 2023, the IMF and Pakistan have reached an agreement at the staff level for a stand-by arrangement worth $3 billion. This agreement comes at a critical time for Pakistan, as it was facing the risk of defaulting on its financial obligations. [9]
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of last resort to national governments, and a leading supporter of exchange-rate stability. Its stated mission is "working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Established on December 27, 1945 at the Bretton Woods Conference, primarily according to the ideas of Harry Dexter White and John Maynard Keynes, it started with 29 member countries and the goal of reconstructing the international monetary system after World War II. It now plays a central role in the management of balance of payments difficulties and international financial crises. Through a quota system, countries contribute funds to a pool from which countries can borrow if they experience balance of payments problems. As of 2016, the fund had SDR 477 billion.
Benazir Bhutto was a Pakistani politician and stateswoman who served as the 11th and 13th prime minister of Pakistan from 1988 to 1990 and again from 1993 to 1996. She was the first woman elected to head a democratic government in a Muslim-majority country. Ideologically a liberal and a secularist, she chaired or co-chaired the Pakistan People's Party (PPP) from the early 1980s until her assassination in 2007.
Mian Muhammad Nawaz Sharif is a Pakistani businessman and politician who has served as the Prime Minister of Pakistan for three non-consecutive terms. He is the longest-serving prime minister of Pakistan, having served a total of more than 9 years across three tenures. Each term has ended in his ousting.
Ghulam Ishaq Khan, commonly known by his initials GIK, was a Pakistani bureaucrat, politician and statesman who served as the seventh president of Pakistan from 1988 to 1993. He previously served as Chairman of the Senate from 1985 to 1988 under president Muhammad Zia-ul-Haq, and was sworn in shortly after Zia's death.
Moeenuddin Ahmad Qureshi was a Pakistani American economist and civil servant who served as caretaker prime minister of Pakistan from July to October 1993. Qureshi also served as the senior vice president of World Bank.
Asif Ali Zardari is a Pakistani politician who is the president of Pakistan Peoples Party Parliamentarians and was the co-chairperson of Pakistan People's Party. He served as the 11th president of Pakistan from 2008 to 2013, the first president born after Independence. He is the widower of twice-elected Prime Minister of Pakistan Benazir Bhutto. He has been a member of the National Assembly of Pakistan since August 2018.
Pakistan and the United States established relations on 15 August 1947, a day after the independence of Pakistan, when the United States became one of the first nations to recognize Pakistan.
General elections were held in Pakistan on 3 February 1997 to elect the members of National Assembly. The elections were a fierce contest between Pakistan Peoples Party (PPP) led by pre-election Prime Minister Benazir Bhutto and the Pakistan Muslim League (N) led by Nawaz Sharif. Unlike the 1990 elections where Sharif won due to allegations of rigging, this time he benefited from the controversial death of Bhutto's brother Murtaza, a populist leader, a worsening economy, and alleged corruption cases against Bhutto's husband Asif Ali Zardari.
Operation Clean-up, also known as Operation Blue Fox, was an armed military intelligence program led by the Sindh Police and Pakistan Rangers, with an additional assistance from the Pakistan Army and its related intelligence agencies. Planned by the FIA, Intelligence Bureau and launched the directives of Prime Minister Nawaz Sharif in 1992, the program was more strictly pursued by upcoming Prime Minister Benazir Bhutto in 1993–94, as part of her internal policies.
Since independence in 1947, the economy of Pakistan has emerged as a semi-industrialized one, the on textiles, agriculture, and food production, though recent years have seen a push towards technological diversification. Pakistan's GDP growth has been gradually on the rise since 2012 and the country has made significant improvements in its provision of energy and security. However, decades of corruption and internal political conflict have usually led to low levels of foreign investment and underdevelopment.
The Nationalisation process in Pakistan was a policy measure programme in the economic history of Pakistan, made Pakistan's industrialization worse and lifted the trust of businessmen and investors. It first introduced, promulgated and implemented by Zulfikar Ali Bhutto and Pakistan Peoples Party to lay the foundation of socialist economics reforms to improve the growth of national economy of Pakistan. Since the 1950s, the country had undergone a speedy industrialisation and became an industrial paradise in Asia. But, as time progressed, the labour trade unions and labour-working class had increasingly strained relations with the industrial business oligarch class, having neglected to improve working conditions and failing to provide a healthy and safe environment for the workers in these industrial industries.
The Privatisation process in Pakistan is a continuous policy measure program in the economic period of Pakistan. It was first conceived and implemented by the then-people-elected Prime Minister Nawaz Sharif and the Pakistan Muslim League, in an attempt to enable the nationalised industries towards market economy, immediately after the economic collapse of the Soviet Union in 1989–90. The programme was envisaged and visioned to improve the GDP growth of the national economy of Pakistan, and reversal of the nationalisation programme in 1970s— an inverse of the privatisation programme.
Pakistan began a period of economic liberalisation in the 1990s to promote and accelerate economic independence, development, and GDP growth.
The Periods of Stagflation, also known as Stagflation in Pakistan or inflation and unemployment in Pakistan, are periods of economic stagflation in Pakistan's economic history, which has affected Pakistan's economic trajectory since its inception. Pakistan's economy is battling a state of virtual "stagflation", means that Pakistan is grappling with the challenging conditions of sluggish economic activity, rising unemployment and rising inflation.
Ukraine has been a member of the International Monetary Fund (IMF) and the World Bank since 3 September, 1992. The country is one of the IMF's four largest borrowers.
El Salvador has been a member of the International Monetary Fund (IMF) since 1946. Their quota currently consists of 287.20 million SDR. The country has received loans from the IMF in the past, but most recently has received only standby loans and currently has no outstanding payments. As of June 2017, the standby arrangements total 1,442,300 SDR while the government has only drawn upon 132,250 SDR.
Poland was one of the founding members of the International Monetary Fund (IMF) in 1945. Under pressure from the Soviet Union, the country withdrew in 1950, believing that the organization had become a tool for the United States. Poland rejoined the IMF in 1986, following the end of martial law in Poland (1981–1983) and the withdrawal of the US veto against Polish membership.
The national debt of Pakistan, or simply Pakistani debt, is the total public debt, or unpaid borrowed funds carried by the Government of Pakistan, which includes measurement as the face value of the currently outstanding treasury bills (T-bills) that have been issued by the federal government.
The Republic of Belarus became a member of the International Monetary Fund on July 10, 1992 and has since taken out a significant amount of loans to stabilize their economy, balance of payments and hyperinflation. Belarus IMF quota is 681.5 millions of special drawing rights (SDR), 0.14% of IMF total. They have 8,280 number of votes, which independently gives them a .16% voting share. Pavel Kallaur currently holds the board of Governor seat. When it comes to voting power Belarus is grouped in the constituency system consisting of Austria, Czech Republic, Hungary, Kosovo, Slovak Republic, Slovenia, and Turkey- together they have 162,344 total votes with 3.23% percent of fund total. Raci Kaya is currently the Board of Governor for the constituency system.
Greece is one of the original members of the International Monetary Fund, joining it on December 27, 1945. It has a quota of 2,428.90 million SDRs and 25,754 votes, 0.51% of the total IMF quota and votes. Greece has been represented on the IMF Board of Governors by Minister of Finance Christos Staikouras since 2019. Greece elects an Executive Director on the fund's Executive Board with Albania, Italy, Malta, Portugal and San Marino. Michail Psalidopoulos is the elected alternate director. Greece has signed two loan agreements with the IMF: a Stand-By Arrangement from 2010 to 2012 and an agreement under the Extended Fund Facility from 2012 to 2016, borrowing a total of 27,766.3 million SDR. Greece owes the IMF 6,735.64 million SDR, and is the fund's third-largest borrower. In 2018, the fund began conducting annual post-program monitoring of Greece in addition to its annual Article IV consultation.
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