Question

To maintain financial stability in the country with reduction in deficit, Govt gets help from different international financial institutions. Discuss the different pragmas introduced by IMF, World bank, Asian development bank and Islamic development bank for Pakistan.

Answer 1

Pakistan is an under developed country. The resources here are sufficient but the main constraint which hinders the country progress is heavy debt burden on it. The country is struggling to become developed as other nations in the world. Pakistan is insufficient in financial resources and all the money which country generates is offset by the interest on the debt.

Step-by-step explanation:

There are times when the country has to approach different financial aid institutions in the world for the money. IMF is one of the major financial aid institution which provides finance for developing country. Pakistan has approached IMF many times and it has imposed certain covenants on the country to provide financial aid. The tax imposition, restrictions on usage of fund, military and defense restrictions are imposed on Pakistan.