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The global financial crisis of 2008 was the worst of its kind since the Great Depression of the 1930s. It surfaced to notice in September 2008 with the failure of several large United States based financial firms. Its underlying causes had been reported following the subprime mortgage crisis. The failures of large financial institutions in the United States rapidly evolved into a global crisis resulting in European bank failures, declines in various stock indexes, and significant reductions in the marketvalue of equities and commodities worldwide. The crisis led to liquidity problems and the de-leveraging of financial institutions especially in the United States and Europe, which further accelerated the liquidity crisis. World political leaders and central bank directors coordinated their efforts to reduce fears but the crisis progressed into a currency crisis with investors transferring vast capital resources into stronger currencies leading many emergent economies to seek aid from the International Monetary Fund. International Monetary Fund’s and World Bank’s Structural Adjustment Programmes have returned to countries, including Pakistan, which were doing well before the ongoing financial crisis.1 Therefore, the financial crisis carries many pertinent lessons for the economies of countries like Pakistan. The paper aims at highlighting the salient aspects of the global financial crisis, its impact on developing countries and drawing lessons for Pakistan.

Muhammad Usman. (2010) Global Financial Crisis: Its Impact On Developing Countries And Lessons For Pakistan, IPRI Journal, Volume-10, Issue-1.
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