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IMF and World Bank Assignment
IMF and World Bank Assignment
Subject:
Financial Markets and Institutions
Submitted To:
Maam Saba Kosar
Submitted By:
Naeema Aziz
Reg No:
8130-FMS/MBA/S19
Topic:
IFM and WORLD BANK
Department Name:
FMS
Institute Name:
IIUI
International Monetary Fund (IMF):
The International Monetary Fund (IMF) is an organization of 190 countries, working to foster
global monetary cooperation, secure financial stability, facilitate international trade, promote
high employment and sustainable economic growth, and reduce poverty around the world.
Created in 1945, the IMF is governed by and accountable to the 190 countries that make up
its near-global membership.
Primary Purpose:
The IMF's primary purpose is to ensure the stability of the international monetary system the
system of exchange rates and international payments that enables countries (and their
citizens) to transact with each other. The Fund's mandate was updated in 2012 to include all
macroeconomic and financial sector issues that bear on global stability.
The IMF’s fundamental mission is to ensure the stability of the international monetary
system. It does so in three ways: keeping track of the global economy and the economies of
member countries; lending to countries with balance of payments difficulties; and giving
practical help to members.
Roll of IMF:
Economic Surveillance:
The IMF oversees the international monetary system and monitors the economic and
financial policies of its 190 member countries. As part of this process, which takes place both
at the global level and in individual countries, the IMF highlights possible risks to stability
and advises on needed policy adjustments.
Lending:
The IMF provides loans to member countries experiencing actual or potential balance of
payments problems to help them rebuild their international reserves, stabilize their currencies,
continue paying for imports, and restore conditions for strong economic growth, while
correcting underlying problems.
Capacity Development:
The IMF works with governments around the world to modernize their economic policies and
institutions, and train their people. This helps countries strengthen their economy, improve
growth and create jobs.
IMF and Pakistan:
Pakistan has been a member of the International Monetary Fund (IMF) since 1950. Due to
unpredictable nature of the economy and heavily dependent on imports, IMF has given loan
to Pakistan on twenty-two occasions since its membership, recent in 2019.
IMF lending programs are of two types: General Resource Account (GRA), and Poverty
Reduction Growth Trust (PRGT). GRA is reserved for not-so-poor to wealthy countries,
whereas, PRGT is for poor countries. GRA is used to give loan on stand-by arrangement
(SRA). Economists mostly called SRA as a bail-out package. Based on these classifications,
since its membership, Pakistan has been bailed-out on 13 occasions, largest in Imran Khan
administration in 2019
World Bank:
The World Bank Group works in every major area of development. They provide a wide
array of financial products and technical assistance, and help countries share and apply
innovative knowledge and solutions to the challenges they face.
With 189 member countries, staff from more than 170 countries, and offices in over 130
locations, the World Bank Group is a unique global partnership. Five institutions working for
sustainable solutions that reduce poverty and build shared prosperity in developing countries.
Knowledge:
Our Access to Information policy was the catalyst for initiatives such as Open Data and the Open
Knowledge Repository.
Access to Information
Financing Products
Advisory Services & Analytics
Results
Learning:
Accelerating solutions through learning.