Pakistans Relationship with IMF and World Bank Essay -- Pakistan Econ

Pakistans Relationship with IMF and cosmos Bank My topic deals with Pakistan, its relationship with the IMF and creative activity Bank, and its internal problems that are make unemployment, poverty, economic crisis and hurt. I shall be analyzing the situation using the neo-classical theory, as it is what the economists of the Pakistan authorities and the IMF are using to alleviate the economic instability of the verdant. Situated in the sub-continent, Pakistan is a low-income country, with great promise for growth. Unfortunately, it is held back from reaching middle-income status by chronic problems like a rapidly growing creation, sizable establishment deficits, a heavy dependence on foreign aid, recurrent political instability and large military expenditures. It is to address these fundamental faults in Pakistans economy that the IMF has initiated the Structural Adjustment Programs (SAPs) in the country. This is discussed in further power point later in the paper. Like all developing countries, Pakistans population is largely employed in the agrarian sector, which accounts for about 48 share of the labor force. In todays world the Industrial and service sectors are the largest growing areas of a substantial countys economy. Yet Pakistan plainly when employs 39 percent of its population in Service, and a minute 13 percent in Industry. This is a paltry figure, compared to the employment statistics of a developed country. Pakistan is too heavily dependent on a single exportation crop, cotton. Hence the countrys fortunes rise and fall with the cotton market. It is no wonder that there are so many poverty ill people in Pakistan. When almost half the population is involved in a very volatile market, a hooking of the time, a lot of people will be burnt by price fluctuations. The country is also subject to the mercy of the weather. Focussing on a major cash crop means very little diversification. This translates to mass hunger a nd hard times for the agricultural sector whenever the agrarian lands are looted by floods, or conversely, by droughts. Even more importantly, Pakistans agricultural sector is marked by large landowners, controlling most of the production. Hence, only a minimal amount of the profit from exports goes to the poor people working for the large farmers. It is these people who constitute a large portion of P... ... what appears to be an inevitable crash of its economy. The situation of the poor and under privileged could also be alleviated eventually as long as the presidential term decides to start spending money on developing an infrastructure that fecal matter help feed the hungry by providing them with jobs. Nevertheless, there are no easy options left. Only the painful ones remain. It is, however, important that the pain of reform be distributed equitably, and not born largely by the poorer classes, as is very a lot the case. There are tough times ahead. Unfortunately, ther e is little certainty that the Pakistani ruling elite is aware of the gravity of the situation or that it has what it will take to steer the country out of its mess.BibliographyBibliographyAndleeb Abbas, Pakistan A cock on the IMF ChainM Sharif, IMF tranche $280 mn Prof. M Rashid, Fracturing Social transformIMF online resources World Bank online resources Pakistan Budget Report, 98-99Dialogue between IMF and Pakistan, 99 Lappe, Collins, Rosset, Esparza, World HungerProf. Dr. M.A. Hussein Mullick, Pulling the country out of its present monetary crisis the challenge for the present regime