The International Monetary Fund (IMF) and World Banks are two very familiar names in the world of economy. You might be more familiar to these names if you belong to a country very influenced by these organizations, such as Pakistan. However, despite having many differences in operations, the two organizations are mostly mistaken to have the same functions and objectives by many people.
- The IMF is an international organization which maintains the global monetary system while the World Bank, which is also a global organization, tends to provide financial support and assistance to the developing countries for enhancing their economy.
- The main focus of the IMF is Economic stability and the World Bank, on the other hand, focuses on Economical growth.
- IMF is a single organization consisting of four credit lines; however, the World Bank has two main institutions namely the International Bank of Reconstruction and Development (IBRD) and the International Development Association (IDA).
- The IMF provides assistance regarding the monetary system of a country, while the World Bank provides lending in the form of funds for the development of the country.
- The objective of the IMF is to deal with the problems faced by a country related to the financial sector and macroeconomics. World Bank, on the other hand, strives to provide a country with support against poverty and for its long-term development.