IMF & Economy of Pakistan | CSS essay | CSS topic Pakistan’s Affairs | IMF deal with Pakistan July 2023 | Current affairs 2023

International Monetary Fund (IMF) is an international financial institution, a financial agency of United Nations that assures sustainable growth in economy of countries under its aids. IMF is a financial helping institute in form of debts that covers 190 countries of the world. It promotes global economic growth. Pakistan also relies on IMF funds & heavy debts at time of crisis to maintain its up rise.

Economy of Pakistan

Pakistan being an underdeveloped country is an agricultural state mostly relying on agriculture for its balanced trades. Economy of Pakistan depends on the up rise its agricultural policies to uplift the state. It has a fertile land but lack of management & developing policies for its best production.

Pakistan’s economy affected highly during the pandemics like flood in 2022. Political instability in also another reason of being on the verge of lowest economic growth. Difficult uprising i growth remained from last year is never seen before. Economic stability is only possible with best governmental policies relating economy up rise without depending upon foreign aids & debts. A short time aid cannot be considered permanent economic prosperity because it only triggers a state for a short span.

Analysts & Economic experts lays stress on self sustained growth of Pakistan rather to be standing on debts. Democracy derailing is another reason for lagging behind prosperity. Stable elected government is important for economic rise. Lack of managed economic policies by government & self developmental growth is also a reason failed to be developed.

Pakistan keeps asset in form of highly educated people that can merge their mental abilities to keep Pakistan on developing track. Unfortunately, the underestimation of educated & highly qualified people is at peak due to which Pakistan is still seeking aids for its general growth.

IMF deal (Positive sign/ singe breath in economy)

Pakistan has been relying on IMF & many other aiding deals. IMF deals should not be considered for a short term economy development, a fall in Dollar price, lack in prices of Gold. But IMF debts, if taken, should be implied for welfare & groom up of developing policies.

Global credit rating agencies Moody’s & Fitch reminded the world about Pakistan that it has to pay back $25bn to creditors this fiscal year. After long term meetings with IMF teams, Pakistan is successful in taking $3bn over the time of 9 months.

Pakistan should implement its self sustaining policies for best economic growth. IMF dealing are based on short time span & in turn, it becomes difficult to pay back all debts on time with lagging country’s growth. IMF deal & assumptions of experts described in Dawn News are given below:

Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) to release $3 billion in critical bailout funds following a long drawn-out review process for the cash-strapped economy since November last year“.

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