GS Paper 2
Syllabus: India and its neighbourhood relations, important international institutions(IMF)
Context:
- The Pakistani rupee (PKR) has been falling continuously from 150 in April 2021 to 213 against the dollar on 21 June, an all-time low.
- Pakistan’s foreign exchange reserves have been depleting during the last one year.
- According to State Bank of Pakistan data, from $17.2 billion in June 2021, the net reserves with the SBP have come down to $8.9 billion in June 2022.
- Citing“heightened external vulnerability risk” and the “ability to secure additional external financing,” the rating agency Moody’s downgraded Pakistan’s outlook to negative.
Conditions by the IMF to support Pakistan:
Will Pakistan pursue macroeconomic reforms?
Insta Links:
To read about the moody rating: click here
Practice Questions
Q. How do rating agencies rate the economic performance of a country. What are its implications? Discuss. (15M)
Q. With reference to International Monetary Fund(IMF), consider the following statements:
- The IMF gives loans to member countries that are struggling to meet their international obligations.
- It is part of the Brettenwood Conference along with the World Trade Organization(WTO).
Which of the statements given above is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans: (a)
