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International
monetory Fund
Hello! Group Members :
 Mubeen Aziz Sethi
 Hamza ikram

 Muhammad Mashood
 Haseeb Ahmed

 Hassan tanveer
We are here to present our topic IMF

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IMF
The International Monetary Fund (IMF) is an
international organization that provides financial
assistance and advice to member countries. 
 The IMF is responsible for the creation and maintenance of the
international monetary system, the system by which
international payments among countries take place.

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 Introduction:
The IMF came into formal existence in 1944 following the Bretton
Woods Conference held the year before. Along with its sister organization,
the World Bank, it was created to:
◇ Prevent economical crisis such as GREAT DEPRESSION
◇ Oversee the world currency

The IMF manages the international monetary system by assisting

member countries address their balance of payment issues. This
assistance comes mainly through either short term loans under its
Standby Agreement (SBA) or medium to long term loans under its
Extended Fund Facility (EFF).

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 BIG concept
IMF supports it’s membership
by providing loans to help
countries overcome
economical difficulties.

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 Objectives:
Balanced growth of trade Multilateral trade and payment

Ensure exchange stability Promote investment of Capital

Eliminate Exchange control Correction of BOP

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 Functions:
Combating Poverty in Low-
Income countries.
Mobilizing External Financing.
Strengthening the International
Monetary System.

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 IMF’s lending strategy:
The IMF’s main lending instruments are:
◇ Stand-By Arrangement (SBA)
◇ Standby Credit Facility (SCF) 
◇ Extended Fund Facility (EFF)
◇ Rapid Financing Instrument (RFI)
◇ Extended Credit Facility (ECF)

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 Quota and voting shares for the largest IMF
members:

IMF Member % out of

Rank No. of votes
country total votes
1 United States 831,407 16.52
2 Japan 309,670 6.15
3 China 306,294 6.09
4 Germany 267,809 5.32
5 France 203,016 4.03
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 Countries with most voting rights:
◇ The Executive Board currently comprises 24
Executive Directors, each of whom appoints an
Alternate with full power to act for him/her
when he/she is not present (see Appendix).
◇ Five Executive Directors are appointed by the
five member countries having the largest quotas
currently are: United States, Japan, Germany,
the United Kingdom, and France

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 Pakistan’s relationship with IMF:
◇ For decades, Pakistan has depended on the International
Monetary Fund (IMF) to fill economic gaps as crises erupt.
◇ Pakistan’s relationship with the International Monetary Fund
(IMF) dates back to the 1950s.
◇ Pakistan, over the years, has relied on IMF assistance to
paper over economic dips that have followed cyclical growth
spurts.

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 Factors driving Pakistan’s
IMF dependence:
Pakistan’s balance of payment problems are
caused by a persistent current account deficit.
Each time, a yawning deficit was followed by
depleting reserves and Pakistan seeking IMF
assistance to replenish reserves leading to constant
state of dependency on IMF:
◇ Imbalance between imports and exports
◇ Poor fiscal mismanagement
◇ Pakistan strategic relevance to US and NATO
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Imbalance between imports and exports:
◇ Rising imports is largely due to increasing
consumption needs of the domestic market, an
overvalued rupee, and the China-­Pakistan
Economic Corridor (CPEC).
◇ 10 Exports remained sluggish due to a failure to
diversify, reliance on low value added
commodities like textiles or agriculture
products, low labor productivity, and
overvaluing the Rupee.

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 Recommendation:
◇ Firstly, attention to growth implications of IMF-supported
programs should become more thorough, systematic,
realistic, and sensitive to social and distributional
consequences.
◇ Secondly, greater attention should be paid to supporting
deep, more growth-oriented structural reforms with more
effective capacity development support and collaboration
with the World Bank and other relevant partners.
◇ Biased and inconsistent decision-making has been slowly
demolishing the real cause of organization which has lead to
undermining of democratic ownership

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Thanks!
Feel free to ask any question.

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