Pakistan_and_IMF.docx - Contents ECONOMIC...

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ContentsECONOMIC HISTORY……………………………………………………………………………………………...2INTERNATIONAL MONETARY FUND (IMF).…………………………………………………………….2PAKISTAN & IMF…………………………….……………………………………………………………………..3FINANCIAL ACTION TASK FORE (FATF)………………………………………………………………….6TAZXATION……………………………………………………………………………………………………………8TAX AMNESTY SCHEME…………………………………………………………………………………………9CURRENCY DEVALUATION……………………………………………………………………………………10INFLATION:…..………………………………………………………………………………………………………12FISCAL DEFICIT…………………………………………………………………………………………………….17TRADE DEFICIT…………..………………………………………………………………………………………18
PAKISTAN ECONOMYThe economy of Pakistan is the 27thlargest economy in the world in terms of purchasingpower and 48thlargest economy in absolute dollar term. And it is the 2ndlargest economy inSouth Asia.Pakistan’s economy mainly encompasses:TextileChemicalsFood processingAgricultureAnd other industriesEconomic History:At the time of independence in 1947, Pakistan was a very poor country and its economymajorly depends on agriculture. Since Independence, Pakistan’s average economic growthrate has been higher than the average growth rate of the world economy during the period.Average annual was 6.8% in the 1960’s, 4.8% in 1970’s and 6.5% in 1980’s. Average annualgrowth fell to 4.6% in the 1990’s with significantly lower growth in the second half of thatdecade. Industrial-sector growth including manufacturing was also above average. Duringthe 1960’s Pakistan was the model of economic development around the world, and therewas much praise for its economic progression and that is the reason that South Koreacopied the 2ndfive-year plan of Pakistan. But in 1990’s the growth rate of economy falls tillnow.INTERNATIONAL MONETARY FUND (IMF):IMF is an organization of 189 countries working to help the development of globalmonetary cooperation, secure, financial stability facilitate international trade, promote highemployment and sustainable economic growth and reduce poverty around the world. TheIMF oversees the international monetary system and monitors the economic and financialpolicies of its 189 member countries. As part of this process, which takes place both at theglobal level and in individual countries, the IMF highlights possible risks to stability andadvises on needed policy adjustments.The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods, NewHampshire, United States, in July 1944. The 44 countries at that conference sought to builda framework for economic cooperation to avoid a repetition of the competitive devaluationsthat had contributed to the Great Depression of the 1930s. The creation of IMF came at theend of the World War II. At the time it was felt by leaders of the Allied countries, particularlythe US & Britain that a multilateral framework was needed to overcome the destabilizingeffects of the precious global economic depression and trade battles. They wanted to1 |P a g e
establish a postwar economic order based on notions of consensual decision-making and

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Term
Summer
Professor
Dr Paul

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