The document discusses the role and activities of the International Monetary Fund (IMF). It notes that the IMF was established in 1945 to promote international monetary cooperation and balanced growth in international trade. The IMF provides financial resources to member countries experiencing temporary balance of payments issues. It engages in surveillance of members' economic policies and provides various types of financing, technical assistance, and capacity development support. The IMF worked during this period to support low-income countries and address issues like high unemployment, rising public debt levels, and ensuring debt sustainability.

2. GROUP MEMBERS:
WAQAR YOUNIS 0100
TOUQEER ALI ABBASI 0020
TAHIR RASHEED 0152

3. i. Introduction
II. Role of IMF
III. Impact of Foreign Aid on National Economic
Policy,
IV. Current state of the Economic Policy.

4.  IMF is UNO recognized international
monetary fund or reserve which helps its
members.
 It established in 1946 after bretton wood
meeting. It has 185 members across the all
nations but soviet Russia and its member are
not linked with IMF.

5.  The IMF was established in 1945 to promote
international monetary co-operation.
 balanced growth in international trade.
 promote exchange rate stability.
 The Fund provides financial resources to its
members to overcome temporary balance of
payments.

6. 1.SURVEILLANCE:
 the institution adopted a Decision on Bilateral and Multilateral
Surveillance with the objective of better integrating IMF
monitoring of the global economy with its oversight over
individual countries.
 It also adopted a strategy for financial surveillance aimed at
improving risk identification,
 Developing better instruments to support integrated policy
response to risks, and increasing engagement with stakeholders to
improve impact

7. 2.THE GLOBAL ECONOMY:
 Although economic activity showed signs of stabilizing in
advanced economies during the year and even accelerated
somewhat in emerging market economies.
3. FINANCING:
 With the ongoing crisis, financing remained an important mode
of IMF support for its members.
 The IMF continued its support to low-income member countries
under the Poverty Reduction and Growth Trust (PRGT).
 A review of the IMF’s framework for assessing debt sustainability
recommended changes to promote more uniform outcomes.

8.  The institution’s policy work for the year reflected the
priority areas identified in the Managing Director’s
Global Policy Agenda.
 In addition to short-term policy actions required to
move the global economy from stabilization to growth,
 The focus of policy priorities needed over the medium
term was on four areas. In the area of jobs and growth,
analytical and operational considerations for the IMF

9.  Capacity Development, as part of a strategic
approach to this core area of IMF activity.
 The majority of technical assistance continued
to be provided to the IMF’s low- and middle-
income members.
 Demand for IMF training programs,
supported by external donors and training
partners, remained robust, with the IMF’s
middle-income members the primary
beneficiaries

10.  The global crisis, the IMF has remained committed to
meeting the changing needs of low-income countries.
 Increasing the financial support available to these low
income countries, other reforms have included
overhauling the institution’s lending framework,
streamlining loan conditionality, and reducing to zero
the interest charges on concessional IMF loans for low-
income countries through the end of 2014.

11.  The IMF’s smallest member countries share a number of intrinsic
characteristics that translate into a common set of development
challenges. Because of their small size, they have higher fixed and
variable costs, with little scope to exploit economies of scale.
 In the public sector, this results in higher costs and reduced
volumes of services provided; in the private sector, in
concentrated market structure and a lack of diversification.
 Small size also influences the financial sector and how small
states manage their exposure to natural disasters.

12.  The Articles of Agreement commit the IMF to
“the promotion and maintenance of high levels
of employment and real income.”
 In the wake of the global crisis, unemployment
has reached unprecedented levels in many
countries, heightening the need to generate
conditions for job creation and inclusive
growth.

13.  Public debt has been on the rise since 2008,
particularly in advanced economies, where it has
reached very high levels.
 The resulting debt overhang presents challenges for
financial stability and economic growth.
 Issues associated with assessing debt
sustainability and reducing vulnerabilities
associated with high debt were a major focus of
the IMF’s work during the year.

14. • The primary objective of conditions in an IMF program
is to reserve money growth to address the
macroeconomic imbalances faced by a country.
 Adopting policies of fiscal.
 Exchange rate devaluation; "getting the prices
right",
 Investment.
 Cuts in real wages,
 Cuts in public expenditure.

15.  One of the major reasons was that the
successive governments used foreign resources
to fix the external payment imbalances but they
did not adopt complementary policy reform.
 high external debts and debt servicing
problems.

16.  If a country has a balance of payments deficit, the
IMF can step in to fill the gap.
 It serves as a council and adviser to countries
attempting a new economic policy.
 balanced growth in international trade.
 promote exchange rate stability.

17.  The IMF has been criticized for not doing much
and for overreaching.
 It has been criticized for being too slow or too
eager to assist failing national policies.
 it has been accused of being a tool for free-market
countries only
 Return on interest.

18. (i) Higher trade deficit.
(ii)Increase in imports of machinery. The higher
oil import bill due to higher international oil
prices is a source of concern but is beyond our
control.
(III)The higher machinery import, on the other
hand, is still welcome as it is a reflection of the
growing capacity of the economy.

19.  Investment in infrastructure: Higher growth
rates for an extended period of time in the
range of 7 to 8 percent
 Annually are possible only if energy, water
resources and infrastructure needs are fully
met.

22.  Record Deficit Budget
 Dialog on structural adjustment facility

23.  Lack of implementation
 Undrawn amount
 Back to back Nine Agreements

24.  The best regime
 Fulfillment of polices

25.  2008 to 20009
 Deficit of record time

26.  Implementation of policy
 New grants
 Easy pay back procedures

27.  Easy way to return money
 Facilitation to its members

28.  Imposition of central excise duty (CED) on
services
 Increase in interest rate.
 Changes in the Islamic Development Bank
loans
 The devaluation of Pakistani Rupee.
 Non-provision of supplementary grants to
government departments.
 Removal of subsidies.