The IMF was established in 1944 at the Bretton Woods Conference to promote international monetary cooperation and stability. It currently has 188 member countries. The IMF works to foster global growth and economic stability through its main functions of surveillance, technical assistance, and financial support. It is governed by the Board of Governors and managed by an Executive Board and Managing Director. While the IMF aims to stabilize currencies and financial systems, its policies have also faced criticism for imposing austerity that negatively impacts social services, labor rights, and the environment in some member countries.

1. INTRODUCTION
to
IMF
Maryam Mobin

2. What is the IMF?
• The intergovernmental
organization that oversees the
global financial system.
• IMF organizes the conduct of
international monetary affairs.

3. • An international monetary
conference was held at Bretton
Woods in U.S.A. in July which
lead to:
Establishment of I. M. F.
Setting up of World Bank
History of IMF

4. The International Monetary Fund
was created in July 1944, originally
with 45 members, with a goal to
stabilize exchange rates and assist
the reconstruction of the world
international payment system.

5. Members
of
IMF

6. 188 Members of IMF

7. Types of Membership
Original membership:
• All those countries whose representatives
took part in Bretton Woods conference
• Who agreed to be the members of the fund
prior to 31st December,1945.
Ordinary membership:
• All those who became its members
subsequently.
• BANK has the authority to suspend any
member and similarly every member is free
to resign.

8. • Agree to the code of conduct found in
the IMF Articles of Agreement
• Pay a quota subscription
• Refrain from restrictions on exchange of
foreign currency
• Strive for openness in economic policies
affecting other countries.

9. Resources
of
IMF

10. • When a country joins IMF, it is assigned
a quota which determines its maximum
contribution to the IMF’s financial
resources.
• It based on the country's relative size in
the world economy, its voting power and
drawing rights.

11. • IMF has signed a number of bilateral loan and note
purchase agreements to supplement its quota
resources.
• It maintains two standing multilateral borrowing
arrangements:
The expanded New Arrangements to Borrow (NAB)
The General Arrangements to Borrow (GAB)

12. • The IMF’s gold holdings amount to
about 90.5 million troy ounces
(2,814.1 metric tons), making the IMF one
of the largest official holders of gold in
the world.
• The IMF’s Articles of Agreement strictly
limit the use of gold.
Gold holdings

13. • The IMF currently provides two primary types of
financial assistance to low-income countries:
 Low-interest loans under the Poverty Reduction and
Growth Trust (PRGT)
 Debt relief under the Heavily Indebted Poor
Countries (HIPC) Initiative and the Catastrophe
Containment and Relief (CCR) Trust.

14. Functions of
IMF
Tehseen Khalid

15. Three Major Functions of IMF
1. Surveillance
• Gathering the data and gives
advices in making policies of the
country.

16. 2.Technical Assistant
• Strengthening the human skills and
institutional skills of the country.
3.Financial Assistant
• Lending to countries to support
reforms

17. • The IMF also plays an important
role in the fight against Money
Laundering and Terrorism

18. Structure of
IMF

19. Structure of IMF
• IMF is Governed by FOUR main Bodies:
1: Governing Body
2: Executive Board
3: Managing Director
4: IMF Staff

20. 1. The Governing Body
• All powers of the IMF are Vested in its
Board of Governors, all the members of
countries are represented.(187)
• Ministry of finance or President of
central bank
• Governor and Alternate Governor
• Meet once in a year in Washington DC

21. • December 2002, the United States
governor was Secretary of the Treasury
Paul O'Neill,and the alternate, Federal
Board Ch. Alan Greenspan.

22. Voting Power
• Each member nation is required to
contribute funds according to its
Economic size and Strength

23.  Special Drawing Rights(SDR)
• A unit for the amount of foreign
currency member states can draw on
Currencies including:
• Euro, Pound Sterling, Japanese yen and
US Dollar

24. Advisers of the GB
• It is being advised by TWO Committees:
I. International Monetary & Financial
Committee (IMFC)
II. The Development Committee

25. International Monetary &
Financial Committee (IMFC)
• IMFC has 24 Members
• Meets twice a year (Spring , Annual)
• Matters of common concern affecting
the global economy
• Communiqués provide guidance for the
IMF's work program

27. The Development Committee
• 24 Members
• A joint committee, tasked with advising
• IMF & World Bank
• Issues related to Economic
development
• Developmental issues

29. 2. Executive Board
• 24 Executive Directors
• 5 are appointed by the countries having
Largest Quotas
• US, UK, Japan, Germany, France
• 19 are appointed by Regional Groups of
remaining members
• Fund General Operation
• Function in Continuous Session

30. 3. IMF Managing Directors
• Headed by Executive Board
• Managing Director is chosen by E.B
• It is responsible for the conduct of the
ordinary business of the Fund
• Manager appointed for 5-Years
• May not serve concurrently

31. 4. IMF Staff
• It has staff of about 2,600 economists,
statisticians, research scholars, experts
in public finance and taxation and in
finance systems and banking, linguists,
writers and editors, and support
personnel.
• Most headquartered in Washington, DC.

34. Importance
of
IMF
Sibgha Saleem

35. The importance of IMF can be
explained for its following works :
To bring about international
monetary cooperation.

36. To promote and establish system of
multinational trade and payments
system.
To help member nations to achieve
balanced economic growth.

37. To ensure stability in foreign
exchange rates.
To reduce the disequilibrium in the
balance of payments.
To offer special aids or loans to
member countries in solving their
economic problem.

38. Strengths
of
imf

39. IMF can be seen as lender of last resort.
The IMF can provide crucial loans to stabilize
the economy and prevent a collapse of
confidence.
Its most important function is its ability to
provide loans to member nations in need of
a bailout.
Stabi lize
Economy at the time of Need

40. • IMF can impose necessary reforms on an
economy such as privatization, fiscal
responsibility etc.
• These policies may cause short term pain but
are essential for preventing future crisis and
long term development .
IMF guarantees long term development

41. It provides an external assessment
of the economy, which helps the
government to implement popular
ideas while focusing on its core
macroeconomic and financial areas
of responsibility.
IMF Provides an External Aid

42. The IMF assists member nations in
several different capacities.
 If a country has a balance of payments
deficit, the IMF can step in to fill the gap.
IMF fills the gap to balance payments

43. The World Bank.
The regional development banks.
The World Trade Organization.
United Nations agencies.
International bodies.
IMF Collaboration with Institutions

44. • It serves as a council and adviser to
countries attempting a new economic
policy.
• It is also known for providing a forum
for discussion and consultation among
member countries.
IMF as an Economic Adviser

45. Weaknesses
of
IMF
Abeer Fatima

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47. • IMF implies same inflexible set of economic
policies for all its members regardless of the
situation
• For example, Policies of privatization may
work better in developed countries in the
West but are more difficult to implement in
the developing world

49. • Loans with high interest rates
• Country stays in debt unable to provide for its
people ~ Poverty and Unemployment

51. • As voting power is determined by the amount
of money that each country pays into the
IMF's quota system
• Dominated by the perspective of the G8
industrialized nations
• The U.S. is the largest shareholder of IMF.
Germany, Japan, France, Great Britain, and
the US combined control about 38 percent of
shares.

53. Hinder Social Security and Social
Development

54. • Structural adjustment policies (SAPs)
• Cut social development budgets like
education, health, food and transportation
budgets etc.
• Make exports cheaper
• Privatize national assets
• Cut down wages of employees

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57. • Foreign bodies have great
influence over key
economic issues and
resource management
and investments in IMF
debt countries.
• For example, Jamaica
argues that the IMF takes
away the ability for
countries to decide
national policy.

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Promote
Gender Discrimination at
National Level

60. IMF policies hurt WOMEN the most in
IMF debt countries by following
means:
• Difficult to meet families' basic needs
• First to be drawn out of schools due to high
education fee as suggested by SAPs
• More exploited as sweatshops
abuses increase with long working hours,
less wages and non-existent facilities

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Violate Labor Rights

62. • The IMF advises countries to
attract foreign investors by
weakening their labor laws
• For example, In Haiti, the
government was told to
eliminate a statute in their
labor code that allowed
increases in the minimum
wage on 10% inflation.
• Workers in rich countries are
also hurt this.

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65. • IMF policies promote natural resource exploitation and
Unsustainable liquidation on a staggering scale
• Environmental ministries are not included in policy making
• For example, in Africa the Ivory Coast's increased
reliance on cocoa exports has led to a loss of two-
thirds of the country's forests

66. Many member countries of IMF like
Italy and Greece, have been accused
of unsustainable budgets and unplanned
investments etc. because they believed
that IMF would come to their rescue
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67. CONCLUSION