Sources of Foreign Financial Assistance

I.M.F: I.M.F provides relatively short to medium term loans for government to finance their trade deficit etc. The amount of loan depends on the amount of international trade which a country does.

World Bank: World Bank provides long term loans. These loans are provided for financing the long term development projects. These loans are very helpful as they mature in a long time and granted for development as it is very difficult to get finance development for a longer period.

ADB: ADB stands for Asian Development Bank. As the name suggests, it provides loans for development as well as for industries to the developing Asian countries.

Direct Lending from Rich Countries: Apart from financial institutions, many countries provide loans to the developing countries. America and Japan provide loans to many countries and Pakistan has repeatedly borrowed from America.