The war between the high-interest rates and weak global growth demands high refinancing needs and might create financial troubles for the next year. Many states with poor economies hardly cope with the aftermath of the COVID-19 pandemic and the Ukraine war. However, countries like Pakistan, Tunisia, and Kenya would be finding alternative resources of financing for their economies if the market does not open its door for these nations.
Pakistan’s Economy and IMF
According to the report shared in Islamabad, Pakistan —the economic growth of Pakistan is expected to decrease significantly in the fiscal year 2023 (which is going to end on 30 June 2023). due to the outcomes of last year’s devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange rate. It is reported that Pakistan’s economy is expected to grow by only 0.4 percent in the current fiscal year ending on June 2023.
The International Monetary Fund (IMF) works for economic growth for its 190 member countries. The IMF’s core responsibility is to achieve sustainable growth and prosperity for all of its 190 member countries by supporting the states with economic policies that promote financial stability and all monetary cooperation, which are important for the increase in productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.
The IMF mostly creates regulations for such nations by providing funds to raise their financial board and to stable their economy.
Role of the IMF in Pakistan
IMF gave Pakistan loans that are based on conditions such as hoist in energy tariffs, and removal of energy subsidies. Also increase in taxes, privatization of public sectors, and fiscal policies of the budget. Pakistan went to IMF about 22 times, the Asian Development Bank (ADB) said in a report today.