This empirical study was conducted to find the impact of IMF credit on the economy of Pakistan. Amid of 2018, Pakistan, being a developing nation is facing the critical situation for which it is left with no option other than knocking the door of IMF for borrowing credit in order to reform the up speculated economic crises. However, the studies have shown the controversial effects of IMF credit and its programs on the economies.
Many critics believed that the programs of IMF exert significant effects on the economy, though this study was conducted to find the impact of IMF credit programs on the economy of Pakistan. The results depicted that the acceptance of the null hypothesis and rejection of the alternative hypothesis. Thus, the finding is that there is no impact of IMF credit programs on economic growth (GDP) of Pakistan since 1971. This proves that Pakistan can invest their borrowed loan in profitable projects to prosper the economic growth. Pakistan, being a developing nation is facing the critical situation for which it is left with no option other than knocking the door of IMF for borrowing credit in order to reform the up speculated economic crises. Before approving the loan the government of Pakistan must convince the IMF for less harsh conditionality against the additional fund than its quota. However, it would be a challenging task to reach IMF to demand 300% more than its quota. So, it is significant to know that whether the government is consuming that loan in fruitful projects so that enough turnover would generate from the economy to pay back the acquired loan. Unfortunately, despite of the global growth objective of IMF, around 11 major conditions imposed by IMF including: excise duty on service as well as agricultural sector, less expenditure in development programs of public sectors, currency devaluation, ceasing gas and electricity subsidy, uniformity in the rates of dollar exchange rate and interbank, ceasing of financial intervention in stock market of Pakistan, raise markup rate on bank and bank transactions, ceasing of non- development expenditure under budget of defense, non-allowance of supplementary grants to the government sectors, reduction in the non-developing expenses of ministries.
Table of Contents
- INTRODUCTION
- 1.1 Background
- 1.2 Problem statement
- 1.3 Research question
- 1.4 Research objective
- 1.5 Hypothesis
- 1.6 Significance
- 1.7 Limitations
- 1.8 Research framework
- LITERATURE REVIEW
- 2.1. Foundation of IMF
- 2.2. The contribution of members in IMF
- 2.3. Effects of IMF programs
- 2.4. Conditionality of IMF and its impact
- 2.5. Consequences of IMF programs on economic growth
- 2.6. IMF decisions
- 2.7. Role of IMF
- 2.8. IMF controversy with economic growth
- 2.9. Negative and positive effects of IMF on GDP
- 2.10. IMF lending practices
- METHODOLOGY
- 3.1. Research design
- 3.2. Sample design
- 3.3. Technique
- MODEL
- ANALYSIS AND FINDINGS
- RECOMMENDATIONS
- CONCLUSION
- REFERENCES
- APPENDIX
Objectives and Key Themes
This research aims to investigate the impact of IMF credit on the economic growth of Pakistan. The study analyzes the potential effects of IMF credit programs on Pakistan's economy, considering the controversies surrounding IMF programs and their influence on developing countries. The study seeks to determine whether IMF credit has a positive or negative impact on Pakistan's GDP and to explore the implications of IMF conditionalities on the country's economic development.
- Impact of IMF credit on Pakistan's economic growth
- Controversial effects of IMF programs on developing countries
- Analysis of the impact of IMF conditionalities on Pakistan's economy
- Assessment of the effectiveness of IMF credit in promoting economic growth
- Exploration of the implications of IMF lending practices on Pakistan's development
Chapter Summaries
The introduction lays out the context of Pakistan's economic situation and its reliance on IMF credit. It highlights the controversial nature of IMF credit and its potential impact on the country's economy. The chapter also defines the research question and objectives, outlining the scope of the study. The literature review provides a comprehensive overview of existing research on IMF credit and its implications. It examines the history of the IMF, its role in the global economy, and the effects of its programs on various countries. This section delves into the conditionalities imposed by the IMF and their potential impact on economic growth. The methodology chapter outlines the research design, data collection methods, and analytical techniques used to study the relationship between IMF credit and economic growth in Pakistan. The analysis and findings section presents the results of the research, examining the data and drawing conclusions about the impact of IMF credit on Pakistan's GDP. The recommendations chapter proposes strategies for mitigating the negative effects of IMF programs and maximizing the benefits of IMF credit for Pakistan's economic development. This section suggests potential policy interventions and reforms that could enhance the effectiveness of IMF credit in promoting growth. The conclusion summarizes the key findings and recommendations of the study, providing a final assessment of the impact of IMF credit on Pakistan's economy.
Keywords
The study focuses on the impact of IMF credit on Pakistan's economic growth, exploring the effects of IMF programs, conditionality, and lending practices. The key concepts investigated include GDP, economic growth, IMF credit, IMF programs, conditionality, and the controversial effects of IMF intervention on developing economies.
- Quote paper
- Tashif Ahmed (Author), 2019, The impact of IMF Credit on the economic growth of Pakistan, Munich, GRIN Verlag, https://www.grin.com/document/933736
