Pakistan has made a staggering revelation about its financial relationship with the International Monetary Fund (IMF). Over the past 40 years, the country has paid more than USD 3.5 billion in interest on loans received from the IMF. This startling figure was disclosed during a meeting of the Senate’s Standing Committee on Economic Affairs, where the Ministry of Finance presented detailed information on loans and repayments made to the IMF.
According to The Express Tribune, officials from the Ministry of Finance and the State Bank of Pakistan revealed that Pakistan has paid over USD 3.60 billion in interest to the IMF. The documents presented during the meeting showed that this interest payment equates to over Rs 1,000 billion in Pakistani currency.
The data further revealed that Pakistan has borrowed approximately USD 29 billion from the IMF over the past 30 years and has repaid more than USD 21.72 billion during the same period. In the last four years alone, Pakistan borrowed over USD 6.26 billion from the IMF and repaid USD 4.52 billion. Additionally, in the past four years, Pakistan has paid over USD 1.10 billion in interest to the IMF.
In 2024, Pakistan borrowed USD 1.35 billion in Special Drawing Rights (SDRs) from the IMF and repaid USD 646.69 million in SDRs. SDRs are an international reserve asset created by the IMF and are used to supplement the official reserves of member countries. These reserves can be exchanged among governments for freely usable currencies in times of need. The value of SDRs is based on a basket of major international currencies.
Ministry of Finance officials informed the committee that Pakistan has borrowed USD 19.55 billion SDRs (USD 25.94 billion) from the IMF since 1984 and repaid USD 14.71 (USD 19.51 billion) billion SDRs, with USD 2.44 (USD 3.23 billion) billion SDRs paid in interest.
The committee chairman expressed concern, stating that the country’s destruction was not happening independently but was a collective responsibility. The committee requested detailed information on every IMF program, demanding transparency on the outcomes of each program.
This revelation comes at a crucial time as Pakistan is on the verge of securing another IMF loan of about USD 7 billion, which will be disbursed over three years. This upcoming loan has ignited concerns about Pakistan’s increasing debt burden and the long-term implications of its reliance on IMF loans. The staggering amount of interest payments already made to the IMF highlights the significant financial pressure Pakistan faces and raises questions about the sustainability of its economic model.
