Over the past forty years, Pakistan has paid more than $3.5 billion in interest on loans from the International Monetary Fund (IMF). This information was disclosed during a Senate Standing Committee on Economic Affairs meeting, chaired by Senator Saifullah Abro, on Thursday at the Parliament House. The Ministry of Finance presented a detailed report on the loans and repayments made to the IMF.
During the briefing, officials from the Ministry of Finance and the State Bank of Pakistan revealed that Pakistan has paid over $3.6 billion in interest to the IMF, amounting to more than Rs1,000 billion in Pakistani currency. Over the last three decades, Pakistan has borrowed around $29 billion from the IMF and repaid over $21.72 billion.
In the past four years alone, Pakistan borrowed more than $6.26 billion from the IMF and repaid $4.52 billion. Additionally, the country has paid over $1.1 billion in interest during this period.
In 2024, Pakistan borrowed 1.35 billion Special Drawing Rights (SDRs) from the IMF and repaid 646.69 million SDRs. SDRs are international reserve assets created by the IMF, used to supplement member countries’ official reserves and can be exchanged among governments for freely usable currencies during times of need. The value of SDRs is based on a basket of major international currencies.
Senator Kamil Ali Agha, a member of the committee, criticized the Ministry of Finance and State Bank of Pakistan officials, demanding clear answers about how much Pakistan has borrowed from the IMF and what remains to be repaid. He expressed frustration at being repeatedly told that the IMF intervenes to “fix” the country, questioning the actual interest paid. Ministry officials responded that since 1984, Pakistan has borrowed 19.55 billion SDRs from the IMF, repaid 14.71 billion SDRs, and paid 2.44 billion SDRs in interest.
The committee chairman remarked that the country’s difficulties are not solely self-inflicted, suggesting that all parties share responsibility for the situation. The committee later requested details of every program with the IMF to be informed about the outcomes of each program.
Officials from the Ministry of Economic Affairs also briefed the committee, reporting that there are 58 ongoing projects in the country funded by loans from the World Bank, with a total commitment of $14.8 billion. So far, $6.16 billion has been disbursed for these projects. Among them, a 762 kV transmission line from Dasu to Islamabad is under construction, with a World Bank commitment of $700 million, of which $112 million has already been disbursed. This project is expected to be completed by June 30, 2025.
Additionally, the Tarbela Fourth Extension Project has a commitment of $390 million, with $159 million disbursed so far. This hydropower project is scheduled for completion by September 30, 2027.
