IMF debt financing in Pakistan (analyzing different political regimes)

Abstract

A strong economy is a basic element for the success of the any country and every country needs external financing in time of crisis. Pakistan is a developing country and from its independence it is facing serious challenges regarding to its economy. To overcome these challenges Pakistan started to take loans from International Monetary Fund(IMF). Pakistan got the membership of IMF in 1950 and took its first loan in General Ayyub ‘s era in 1958 and after that it remained heavily dependent on IMF and could not become able to get rid from this habit of borrowing. Almost every government took loans from IMF to sustain the economic growth. This project has entail the historical over view of loans that have been taken from IMF. Pakistan has taken loans From IMF for 22 times. For the detailed analysis of these loans the statistical data has been taken from the IMF’s official website. The main purpose of this project is to analyze that how effectively these loans have been used during different political regimes. Another objective is to study the effect of these loans on the growth of the economy.