What is IMF
The International Monetary Fund (IMF) is a global institution that was founded in 1944 with the goals of fostering global economic growth, encouraging international trade, and eradicating poverty. In order to allow nations to conduct business with one another, the international monetary system—the system of exchange rates and international payments—must be stable.
Via a number of instruments, including loans and debt relief, the IMF offers financial support to member nations going through economic challenges. To assist member nations in strengthening their economic institutions and policies, it also offers technical assistance and policy recommendations.
Each of the IMF's 190 member nations is represented on the executive board, which oversees the organisation. The organisation has offices all over the world and its headquarters are in Washington, D.C.
The IMF has been instrumental in fostering economic growth and stability in numerous nations all around the world over the years. It has, however, also come under fire for several of its policies and practises, particularly in relation to the restrictions it places on loans and how those restrictions affect recipient nations.
Pakistan and IMF
Since the beginning of the nation, Pakistan has frequently needed financial support from the IMF to address a range of economic difficulties. Since then, the IMF has offered the nation 23 loan programmes.
Pakistan and the IMF had agreed to a bailout plan of $6 billion in 2019, and another $1 billion was added to the programme the next year.
When the economy deteriorated in 2019, they requested a $1 billion loan from the IMF for the twenty-second time. The IMF provided a loan based on requirements such raising energy prices, eliminating energy subsidies, raising taxes, privatising public enterprises, and adopting fiscal measures that balance the budget.
Pakistan's Finance Minister Dispels IMF Snub Rumors and Talks About Election Financing
Ishaq Dar, Pakistan's finance minister, has refuted rumours that IMF representatives declined to meet with him during the Bretton Woods organisations' spring meetings. Dar emphasised that he delayed his trip to the US at the request of Prime Minister Shehbaz Sharif due to the current political climate. Dar delivered a vehement speech in which he said that Pakistan was an IMF member and not a beggar and that the IMF could not prevent him from attending the spring meetings.
Dar was anticipated to attend the World Bank-IMF spring meetings, which were held in Washington from April 10 to 16. The topic of his discussion with IMF management was the elimination of obstacles to the restart of the $6.5 billion programme that had been halted. At the end of January, Pakistan and the IMF have been discussing the release of $1.1 billion from a $6.5 billion rescue package decided upon in 2019. To release the cash, the government has taken a number of steps, including reducing subsidies, abolishing a fictitious exchange rate ceiling, boosting taxes, and increasing the price of fuel. The agreement has been postponed, nevertheless, due to promises of more funding from friendly countries.
The finance minister highlighted that although these are customary practises, Pakistan has now entered a constitutional crisis. In view of the Supreme Court's April 4 decision, he continued, the Ministry of Finance bears a significant amount of responsibility for the funding distribution to the Election Commission of Pakistan (ECP). A persistent demand made by Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan after he dissolved the assemblies in both provinces forced the apex court to order snap elections in Punjab on May 14. The court declared the ECP's decision regarding the Punjab and Khyber Pakhtunkhwa (KP) election null and void.
Dar disclosed that the federal government must provide $21 billion for Punjab elections on April 10 in accordance with a Supreme Court order. Indeed, the finance ministry and the cabinet—of which I am a member—have a significant duty in this regard.
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