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ISLAMABAD: Over the past forty years, Pakistan has paid more than $3.5 billion in interest on loans to the International Monetary Fund (IMF).
This information was disclosed during a Senate Standing Committee on Economic Affairs meeting, chaired by Senator Saifullah Abro, at the Parliament House. The Ministry of Finance provided details on the loans and repayments made to the IMF.
Officials from the Ministry of Finance and the State Bank of Pakistan revealed that Pakistan has paid over $3.60 billion in interest to the IMF, which amounts to over Rs1,000 billion in Pakistani currency. Over the past 30 years, Pakistan borrowed around $29 billion from the IMF and repaid more than $21.72 billion.
In the last four years, Pakistan borrowed over $6.26 billion from the IMF and repaid $4.52 billion. During this period, the country has also paid over $1.10 billion in interest to the IMF.
In 2024, Pakistan borrowed $1.35 billion in Special Drawing Rights (SDRs) from the IMF and repaid $646.69 million in SDRs.
SDRs (Special Drawing Rights) is an international reserve asset created by the IMF to supplement member countries’ official reserves. They can be exchanged among governments for freely usable currencies during times of need and are valued based on a basket of major international currencies.
During the meeting, Committee member Senator Kamil Ali Agha criticized the Ministry of Finance and SBP officials, demanding clear information on the total amount borrowed from the IMF and the outstanding repayment balance.
He expressed frustration, stating, “Don’t tell us stories; tell us how much we have borrowed from the IMF and how much we still owe. We are always told that the IMF comes to fix us.”
In response, the Ministry of Finance officials clarified that since 1984, Pakistan has borrowed $19.55 billion in SDRs from the IMF, repaid $14.71 billion in SDRs, and paid $2.44 billion in SDRs in interest.
The committee chairman noted that the country’s issues are not self-inflicted but involve collective responsibility. The committee later requested detailed information on each IMF program, seeking transparency about their outcomes.
Additionally, Ministry of Economic Affairs officials informed the committee that there are 58 projects funded by World Bank loans, with a total commitment of $14.81 billion. So far, $6.16 billion has been disbursed.
Among these projects, the Dasu-Islamabad 762 kV transmission line is funded with a $700 million commitment from the World Bank, with $112 million already disbursed. The project is expected to be completed by June 30, 2025.
The Tarbela Fourth Extension Project has a $390 million commitment, with $159 million already disbursed, and is projected to be completed by September 30, 2027
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