The impact of IMF Loans and their conditions on the macroeconomic indicators of Pakistan

Abstract

In this thesis, I analyzed the impact of IMF loans and their conditions on the economy of Pakistan by using the IMF database, World bank published papers, and some other reliable study papers that completely match with my study. My study thoroughly looked at the influence of these financings by examining major macroeconomic indicators of Pakistan, including GDP growth rate, Inflation rate, exchange rate, total external debt, current account balance, and poverty rate. Moreover, how IMF policies have contributed to Pakistan's economic prosperity since its first engagement. It investigates several imposed conditions and showcases their effect, which has been a source of relief for a short while. However, in the long run it has been adversely impacted and hindered the growth. the paper also adds some arguments and discussions about the IMF's own inappropriate policies and approaches for improving developing countries that have found not suitable. In addition, Pakistan's own system has also not been favorable to implementing such harsh conditions.