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International Monetary Fund gave Pakistan a fund of 20 thousand crores
Here, the International Monetary Fund (IMF) has approved two packages of $ 2.3 billion (20 thousand crore rupees) to Pakistan amid the situation of war.
Out of this loan, $ 1 billion (Rs 8500 crore) will be given immediately under the Expendent Fund Facility (EFA), while a loan of $ 1.3 billion (11 thousand crore rupees) will be given in installments for the next 28 months.
Voting is done on the basis of quota in IMF
The IMF has 191 countries. Every country has a vote, but the vote is not decided only. The IMF determines the voting rights based on the quota. That is, the more quota, the more it will be heard in the decisions of the IMF.
How much the quota of which country will be, it depends on the economic strength of that country (such as GDP), foreign exchange reserves, trade and economic stability. For example, America’s quota is the highest 16.5%, so its vote matters the most. India’s voting power is close to 2.75%. While Pakistan’s voting power is close to 0.43%.
Voting rights meet on two basis
Basic Votes: Each country gets 250 basic votes, which are equal for all countries.
Kota-based votes: Extra votes are available on the basis of quota. For this, special currency SDR of IMF has to be purchased. 1 lakh SDR gets 1 vote.
Basic votes and quota-based votes get total votes.
What is SDR?
The full name of SDR is special drawing rights (special drawing rights). It is an international reserve asset made by IMF. It can be called ‘IMF’s International Cash’ or ‘Global Currency Unit’. It is used for financial transactions. Although this is not real currency.
The price of SDR is based on 5 large international currency:
- US Dollar (USD)
- Euro (EUR)
- Chinese Yuan
- Japanese Yen (JPY)
- British pound (GBP)
IMF allotes all member countries according to their quota.
No decision is taken without American vote
The US has the highest 16.5% voting rights. Up to 85% of votes are required to take a decision. In such a situation, if the US does not vote, then no decision can be passed in the event of not getting a majority.
India did not vote today in IMF
India’s Foreign Secretary Vikram Egypt said on 8 May that the IMF has given many major assistance to Pakistan in the last three decades. No programs run by it have reached a successful result.
Today, India lodged their objections before voting. India said that if a country is repeatedly helped which promotes terrorism across the border, then it sends a wrong message to the world.
After this, India did not vote in protest against Pakistan getting the IMF fund. With the help of the votes of the rest of the countries, this fund was approved to Pakistan.
