Structural Adjustment of Pakistan
ISSUES OF PAKISTAN ECONOMY
ASSIGNMENT
TOPIC:
STRUCTURAL ADJUSTMENT PROGRAMMES
SUBMITTED TO
Ms. Ayesha
SUBMITTED BY
Syeda Sasha Sohail
BSc. Economics
Semester VII-A
DATE OF SUBMISSION
23th September, 2013
KINNAIRD COLLEGE FOR WOMEN
Structural Adjustment Programs
Structural Adjustment Programmes (SAPs) are economic policies for developing countries that have been promoted by the World Bank and International Monetary Fund (IMF) since the early 1980s. Structural Adjustment Policies are economic policies which countries must follow in order to qualify for new World Bank and International Monetary Fund (IMF) lower interest rates loans and help them make debt repayments on the older debts owed to commercial banks, governments and the World Bank.
Measures Imposed Under SAPs
Although SAPs differ somewhat from country to country, they typically include:
A shift from growing diverse food crops for domestic consumption to specializing in the production of cash crops or other commodities (like cotton, coffee, copper, tin etc.) for export;
Abolishing food and agricultural subsidies to reduce government expenditures;
Deep cuts to social programmes usually in the areas of health, education and housing and massive layoffs in the civil service;
Currency devaluation measures which increase import costs while reducing the value of domestically produced goods;
Liberalization of trade and investment and high interest rates to attract foreign investment;
Privatization of government-held enterprises.
Structural Adjustment Agreements in Pakistan
Structural adjustment programs in Pakistan date back to 1978-79 when the military regime first called in the IMF for assistance. Pakistan and the IMF signed a Trust Fund loan in 1979-80. The next year a three year Extended Fund Facility was signed from 1980-81 to 1982-83. Another loan was offered in 1983-84, but this was turned down by the government which had adequate foreign exchange
ASSIGNMENT
TOPIC:
STRUCTURAL ADJUSTMENT PROGRAMMES
SUBMITTED TO
Ms. Ayesha
SUBMITTED BY
Syeda Sasha Sohail
BSc. Economics
Semester VII-A
DATE OF SUBMISSION
23th September, 2013
KINNAIRD COLLEGE FOR WOMEN
Structural Adjustment Programs
Structural Adjustment Programmes (SAPs) are economic policies for developing countries that have been promoted by the World Bank and International Monetary Fund (IMF) since the early 1980s. Structural Adjustment Policies are economic policies which countries must follow in order to qualify for new World Bank and International Monetary Fund (IMF) lower interest rates loans and help them make debt repayments on the older debts owed to commercial banks, governments and the World Bank.
Measures Imposed Under SAPs
Although SAPs differ somewhat from country to country, they typically include:
A shift from growing diverse food crops for domestic consumption to specializing in the production of cash crops or other commodities (like cotton, coffee, copper, tin etc.) for export;
Abolishing food and agricultural subsidies to reduce government expenditures;
Deep cuts to social programmes usually in the areas of health, education and housing and massive layoffs in the civil service;
Currency devaluation measures which increase import costs while reducing the value of domestically produced goods;
Liberalization of trade and investment and high interest rates to attract foreign investment;
Privatization of government-held enterprises.
Structural Adjustment Agreements in Pakistan
Structural adjustment programs in Pakistan date back to 1978-79 when the military regime first called in the IMF for assistance. Pakistan and the IMF signed a Trust Fund loan in 1979-80. The next year a three year Extended Fund Facility was signed from 1980-81 to 1982-83. Another loan was offered in 1983-84, but this was turned down by the government which had adequate foreign exchange