Role Of IMF In Pakistan

Introduction: There was complete lack of monetary cooperation amongst the countries of the world after the first world war.A sort of economic war was going amongst the majority of the countries of the world.Infact the 2nd world war broke out primarily on account of these economic causes.During the closing years of war an international monetary conference was held at Bretton woods in USA in 1944 to prepare a plan to root out the economic causes leading to the out break of war.The Bretton woods plan was divided into two parts: 1) The establishment of IMF. 2) The setting up of Worldbank. The international monetary fund was conceived in July 1944 and came into existence in December 1945.The international financial system has changed dramatically

But for all these policies to work for the economy,the Pakistan’s government too has to coordinate and implement the policies.These policies may cause short term pain but are important for preventing future crisis and long term developments.It provides an external review of the economy which helps the government to implement popular ideas. Another important role the IMF plays is that it prevents international financial system from collapsing.It helps the country to eliminate or at least to minimize the short period and long period disequilibrium in their balance of payments.It also tenders advice to the country on monetary matters because it is in a position to do so in view of its special

that are considered necessary for economic growth in Pakistan.The worldbank strategy is to support implementation of the government of Pakistan’s own Poverty Reduction Strategy Paper(PRSP) and to provide financing and technical assistance for both economic and human development.Pakistan’s PRSP emphasizes the importance of sustaining rapid and broad-based economic growth as the principle means of reducing poverty.Improving government performance is another central element of Pakistan’s poverty reduction strategy.The worldbank is assisting the government’s efforts in this area by supporting reforms in public financial management and procurement,restructuring of the tax administration bureaucracy support for civil service reforms.The worldbank also supports Pakistan’s efforts to improve the lives of its citizens through efforts to improve access,to and quality of,public services in education,health,electricity,water supply and sanitation.At the same time the worldbank is assisting in efforts to reduce vulnerability and poverty through effective safety nets and targeted programs to reach the