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 2023. [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 $264,014 in 2023) [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 $362,566 in 2023) 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 $657,129 in 2023) 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 $611,857 in 2023) in 1972, US$75,000(equivalent to $514,768 in 2023) in 1973 and another of US$75,000(equivalent to $463,360 in 2023) in 1974 to meet its growing needs. [3] In 1977, another standby arrangement of US$80,000(equivalent to $402,241 in 2023) was made on urgent basis. [3] Three years later, an extended facility of US$349,000(equivalent to $1,290,567 in 2023) was reached in 1980. Struggle of Pakistan continued, as Pakistan withdrew another US$730,000(equivalent to $2,446,515 in 2023) 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 Benazir Bhutto government withdrawn US$194,480(equivalent to $501,030 in 2023) as standby arrangement and another US$382,410(equivalent to $985,185 in 2023) in shape of structural adjustment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 $185,609 in 2023) on 16 September 1993. [3] Poor handling of economy continued by her government as she got loan of US$123,200(equivalent to $253,260 in 2023) under the extended fund facility and another US$172,200(equivalent to $353,988 in 2023) 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 $589,251 in 2023) 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 $503,675 in 2023) and US$113,740(equivalent to $215,880 in 2023) on October 20, 1997. [3]
On 29 November 2000, an amount of US$465,000(equivalent to $822,713 in 2023) was drawn as standby arrangement. [5] One year later, Pakistan again went to IMF for US$861,420(equivalent to $1,482,271 in 2023) under the extended fund facility on 06 December 2001. [5]
In 2008, Yousaf Raza Gillani received the largest-ever US$7.6(equivalent to $10.76 in 2023) 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 $5,650,560 in 2023) 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 reached an agreement at the staff level for a stand-by arrangement worth $3 billion. This agreement came at a critical time for Pakistan, as it was facing the risk of defaulting on its financial obligations. [9]
In July 2024, Pakistan reached a staff-level agreement for a new US$7 billion loan deal with the IMF. [10] Later in September 2024, the executive board of the IMF approved a USD 7 billion loan for Pakistan, which the country will receive in installments over 37 months. [11]
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."
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 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.
The Pakistan People's Party is a centre-left political party in Pakistan, currently being the largest in the Senate and second-largest party in the National Assembly. The party was founded in 1967 in Lahore, when a number of prominent left-wing politicians in the country joined hands against the rule of Ayub Khan, under the leadership of Zulfikar Ali Bhutto. It is affiliated with the Socialist International. The PPP's platform was formerly socialist, and its stated priorities continue to include transforming Pakistan into a social-democratic state, promoting egalitarian values, establishing social justice, and maintaining a strong military. It, alongside the Pakistan Muslim League-Nawaz and the Pakistan Tehreek-e-Insaf, is one of the three largest political parties of Pakistan.
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 serving as the 14th president of Pakistan since 10 March 2024, having held the same office from 2008 to 2013. He is the president of Pakistan People's Party Parliamentarians and was the co-chairperson of Pakistan People's Party from December 2007 until December 2015.
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 the country.
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 1993–1994, 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 IMF Stand-By Arrangement (SBA) is an economic program of the International Monetary Fund (IMF) involving financial aid to a member state in need of financial assistance, normally arising from a financial crisis. In return for aid, the economic program stipulates needed reforms in the recipient country aimed at bringing it back on a path of financial stability and economic sustainability. The SBA is a sub-set of IMF and World Bank programs aimed at Structural adjustment.
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.
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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.
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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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