Impacts of the International Monetary Fund on the Economy of Pakistan

Abstract

This research article addresses the question “What are the impacts of the International Monetary Fund (IMF) on the economy of Pakistan”. Here a matter of concern is whether the IMF program has an overall positive impact on the growth of the economy of Pakistan or has just increased the debt burden. Positive impacts include solving the issue of balance of payment, stabilizing the foreign exchange reservoirs, bringing improvement in its exports, and providing money for imports. The negative impacts included the devaluation of Pakistani currency, increased burden of foreign debt, increased excise duties, discouraged investment, and dictate Pakistan in controlling the stock exchange. A qualitative research approach is utilized to examine the impacts of the IMF on the economy of Pakistan. It has been observed from the study that IMF has both positive and negative impacts on the economy of Pakistan. This study explores and analyses in detail the impacts of IMF loans on economic stabilization processes in Pakistan.