IMF Financing, Pakistan's Economic Growth, and Islam
DOI:
https://doi.org/10.62843/jefr/2023.9071106Keywords:
Financial Firms, Banking Sector, Pakistan, CustomersAbstract
The International Monetary Fund acts as the ultimate source of financial assistance for all nations. Since 1958, Pakistan has regularly availed of IMF loans. However, its economic status has not advanced sufficiently enough to be classified as one of the industrialised nations. The study seeks to analyse the influence of an IMF loan on Pakistan's economic progress. The study intends to investigate the influence of IMF loans on the improvement of socio-economic dynamics in Pakistan. The study seeks to ascertain if IMF interest-based funding enhances or impedes the development of Pakistan's economy. Qualitative research methodology is used subjectively to develop a conceptual framework using an inductive paradigm. IMF loans to Pakistan are thought to have impeded economic progress and worsened the plight of economically disadvantaged individuals by undermining their rights to health, food, and quality of life. The loans are interest-based, which goes against Islamic Shariah rules and the country's Islamic identity. Pakistan faces particular costs in obtaining IMF loan funding with interest.
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