International Monetary Fund (IMF)

Source: DH

Context: India abstained from an IMF vote approving new financial assistance to Pakistan and raised concerns over Pakistan’s repeated misuse of IMF funds, and its poor reform record linked to cross-border terrorism risks.

About International Monetary Fund (IMF):

• What is the IMF?

• The International Monetary Fund (IMF) is a global financial institution that promotes international monetary cooperation, economic stability, and trade expansion. It was established as part of the Bretton Woods Agreement to maintain global economic order post-World War II.

• The International Monetary Fund (IMF) is a global financial institution that promotes international monetary cooperation, economic stability, and trade expansion.

• It was established as part of the Bretton Woods Agreement to maintain global economic order post-World War II.

• Established In:

• Year: 1945 Operational Since: 1947

• Year: 1945

• Operational Since: 1947

• Headquarters: Located in Washington D.C., United States

• Key Functions:

• Surveillance: Monitors global and national economic developments via reports like World Economic Outlook and Global Financial Stability Report. Capacity Building: Provides technical training and policy advice on public finance, monetary policy, data analytics, and governance. Lending: Offers short- and long-term financial support to help countries manage balance-of-payment crises.

• Surveillance: Monitors global and national economic developments via reports like World Economic Outlook and Global Financial Stability Report.

• Capacity Building: Provides technical training and policy advice on public finance, monetary policy, data analytics, and governance.

• Lending: Offers short- and long-term financial support to help countries manage balance-of-payment crises.

• Sources of Funding:

• IMF’s primary resources come from member country quotas, determined by each country’s relative size in the world economy. Special Drawing Rights (SDRs) supplement reserves and enhance liquidity.

• IMF’s primary resources come from member country quotas, determined by each country’s relative size in the world economy.

• Special Drawing Rights (SDRs) supplement reserves and enhance liquidity.

• Loan Instruments:

• Extended Fund Facility (EFF): For structural economic reforms. Resilience and Sustainability Facility (RSF): Aims to strengthen long-term economic sustainability. Stand-by Arrangements (SBA): Provides rapid crisis support. Loans often carry conditionalities, termed Structural Adjustment Programs, which require recipient countries to implement economic reforms.

• Extended Fund Facility (EFF): For structural economic reforms.

• Resilience and Sustainability Facility (RSF): Aims to strengthen long-term economic sustainability.

• Stand-by Arrangements (SBA): Provides rapid crisis support.

• Loans often carry conditionalities, termed Structural Adjustment Programs, which require recipient countries to implement economic reforms.