Cash-Strapped Pakistan Paid More Than $3.5 Billion In Interest To IMF Over 40 Years; Check Details Here

The Ministry of Finance also informed the committee that since 1984, Pakistan has borrowed $19.55 billion SDRs from the IMF and repaid $14.71 billion SDRs, with $2.44 billion SDRs paid in interest

Pakistan has paid over $3.5 billion in interest on loans from the International Monetary Fund (IMF) over the past forty years. This information was revealed during a Thursday meeting at Parliament House of the Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro. 

The Ministry of Finance presented detailed information about the loans and repayments made to the IMF thus far.

According to The Express Tribune, officials from the Ministry of Finance and the State Bank of Pakistan disclosed that Pakistan has paid over $3.60 billion in interest to the IMF. The documents presented at the meeting revealed that this interest amounts to over Rs 1,000 billion in Pakistani currency.

Additionally, it was revealed that over the past 30 years, Pakistan has borrowed approximately $29 billion from the IMF and repaid more than $21.72 billion. In the 4 four years alone, Pakistan borrowed over $6.26 billion from the IMF and repaid $4.52 billion while paying over $1.10 billion in interest during the same period.

In 2024, Pakistan borrowed $1.35 billion in Special Drawing Rights (SDRs) from the IMF and repaid $646.69 million in SDRs. 

SDRs are an international reserve asset created by the IMF to supplement official reserves. Based on a basket of major international currencies, they can be exchanged among governments for freely usable currencies in times of need.

The Ministry of Finance also informed the committee that since 1984, Pakistan has borrowed $19.55 billion SDRs (approximately $25.94 billion) from the IMF and repaid $14.71 billion SDRs (about $19.51 billion), with $2.44 billion SDRs (around $3.23 billion) paid in interest.

These numbers come at a time when Pakistan is nearing another IMF loan of approximately $7 billion, which will be disbursed over the next 3 years.

During the meeting, the committee chairman remarked that the country's difficulties are not self-inflicted but rather a collective responsibility. The committee subsequently requested detailed information on every IMF program, insisting on being informed about the outcomes of each program.