The IMF Programme and the Domestic SME Sector

Due to the current economic challenges faced by Pakistan, the Government of Pakistan (GoP), after extensive negotiations, has entered into yet another financial assistance program from the International Monetary Fund (IMF); the new Extended Fund Facility (EFF) amounting to USD 6 Billion shall be based over a 39 month period. This research brief evaluates the likely impact of this new IMF program and its implications on Pakistan’s Small and Medium Enterprise (SME) segment.

The very first interaction between the IMF and Pakistan dates back to the year 1958. Pakistan has availed 21 IMF bailout programs since then, 12 of which were obtained in the last three decades alone. The IMF provides loans to countries as a stop-gap measure to implement fiscal and monetary policies needed to restore conditions for a stable economy and sustainable growth as compared to any abrupt shift in
policies.

Category
Financing
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