INTERNATIONAL MONETARY FUND (IMF) AND ISLAMIC FINANCE

Abstract

International Monetary fund is widely known for its financial support and stability programs toward week and unstable economies around the world. It was not until 21st century when Islamic modes of financing became an official part of IMF’s finance market after successfully generating record breaking revenues in Muslim countries like Malaysia and Saudi Arabia. The most important aspect of Islamic finance was Sukuk. In fact, it was the reason Islamic finance became a part of IMF. But the current working of IMF around the world and Islamic mode of financing don’t go side by side. The reason for this is interest based policies of IMF and increased risk factor for borrower countries. Moreover, IMF exploits week economies using funds obtained by strong countries and as a result, poor becomes poorer and rich becomes richer. It is the IMF who took out the values of the most important financial entities from Muslim countries; Oil and Gold. It can be said that as a result of IMF and its success, Muslim countries suffered the most and are still suffering. Pakistan is the living example of this suffering. The amount of debt payable by Pakistan is insane and send shivers down the spine. So it can be concluded that IMF started for a noble cause to support economies suffering from great depression and WWII but it has become a Mafia who cares only about gaining more power and hold over poor economies.