Pakistan Institute of Development Economics

PDR

THE PAKISTAN DEVELOPMENT REVIEW 

The IMF Stabilization Package and Pakistan’s Stabilization Experience

The application of IMF stabilization packages in the less developed countries (LDCs) has always been a controversial issue. The debate on IMF stabilization packages with their strong elements of conditionality and impact on the LDCs has intensified with the re-emergence of the payments imbalances in the Seventies and early Eighties. The objective of this paper is to evaluate, very briefly, Pakistan’s three-year stabilization programme under the Extended Fund Facility (EFF) arrangement for the period 1980-83. The plan of the paper is as follows. Section II describes the IMF stabilization package under the standby arrangements and developments leading to the EFF arrangements. Section III provides a brief evaluation of the stabilization programmes. In Section N we attempt to evaluate Pakistan’s programme in terms of quantifiable macro indicators as well as supply-side variables.

Faiz Bilquees

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