Injections into the Dutch Disease : Do IMF Packages and Foreign Aids Recover Sudan's Economy?

The secession of South Sudan has rendered the political, security, economic and social situation of Sudan fragile. Thus, the IMF packages and foreign aids had yielded some positive returns on Sudan economy recovery. This study focused on the foreign aids and recent economic reforms which are conceived to be relevant in the sustainable economic recovery in Sudan. We analyzed the effects of foreign aids IMF packages on Inflation and exchange rates using an augmented Fischer-Easterly model for the panel data from 1985-2014. The results show that Sudan will face in upcoming five years gap in balance of payments and debts crisis harder than current situation compared to those of another country who adopted the same policies becomes lower over time. The results also show that shortage of foreign currencies is the main factor affecting Sudan's economy