Old and New Pakistan
Pakistan is a country of circumstances from the very first day of his independence. After 67 years Pakistan is on the same street, but there is one change that now there is no Quaid-e-Azam (Muhammad Ali Jinnah) who will lead this nation. Pakistan has its own importance geographically, but due to this importance world knows` this country a largest producer of terrorists in the cosmos which is again a conspiracy.
IMF (international monetary fund) is an only organization which give Pakistan any kind of funds simply on his requirements.Loans from the IMF are an important source to handle the fiscal problems of Pakistan such as stabilization of currency, for making foreign reserves and to satisfy their short term wants by providing numerous natures of loans.In the final few months, there was a plenty of gossips and negotiation on the government decision to call for IMF loan to meet financial complications.
In spite of actual policy actions needed by State Bank of Pakistan, issues such as sharp depreciation of the exchange rate, depletion of foreign exchange reserves of $5 billion till November 2008, growth rate of more than 25%, and growth in the import bill by 35.2% created gigantic challenges for the government and the State Bank of Pakistan.Lastly, the IMF loan was approved to help Pakistan come out of the financial crisis albeit with certain IMF conditions.This is nevertheless an important matter of discussion until this country understands.WHAT IT IS?
The conditions imposed by IMF mostly include the close monitoring, reduction of government spending, change in policy/price reduction rate and etc.For acquiring a loan.To make certain that funds approved for the needy country are used in an idealistic way.The IMF loans extremely impact the economy and bring change in the central framework which holds both beneficial and bad impacts on the land.
Pakistan is facing a decline in GDP. Right after receiving of IMF loans in the economy except in the second last lending arrangement in Musharraf's government when the total quantity of the loan was passed from the IMF.The economic pointers after IMF loans in the final two decades followed a typical round, usually the trend after IMF loans show immediate decline in GDP growth pace, increased tax revenues to GDP ratio, increased CPI, increased debt in the nation.These all are the things which are blended and are talks are old at present.Now let’s find out what is failing on presently.
IMF releases $555.6 million third tranche to Pakistan in March 2014 current minister of finance of Pakistan MR. Ishaq Dar is saying these days that Pakistan is on correct track and on the other hand IMF representatives said that Pakistani economy is on the road towards success and hope that economy shall be regenerated as soon as possible. But on ground level that’s reality that people are facing same problem which was old and isn’t reformed yet. That’s a serious sign that the government is placing his full effort to conclude this, but totally in vain and didn’t show until now. We desire so, that Pakistani financial problems will settle soon and want to see this nation and country strong which is a marvelous land for the citizens.