Pakistan Paid $3.5 Billion Interest to IMF

In a recent Senate Standing Committee on Economic Affairs meeting, Pakistan's Ministry of Finance disclosed that the country has paid over USD 3.5 billion in interest on loans from the International Monetary Fund (IMF) over the past forty years. The meeting, chaired by Senator Saifullah Abro, highlighted the significant financial burden of these loans, with officials detailing the extensive borrowing and repayment history. According to reports from The Express Tribune, Pakistan has borrowed approximately USD 29 billion from the IMF in the last three decades, repaying more than USD 21.72 billion. In the past four years alone, the country borrowed USD 6.26 billion and repaid USD 4.52 billion, alongside paying over USD 1.10 billion in interest during this period. This financial cycle underscores the ongoing challenges faced by Pakistan in managing its debt obligations. In 2024, Pakistan borrowed USD 1.35 billion in Special Drawing Rights (SDRs) from the IMF, repaying USD 646.69 million in SDRs. Since 1984, the total borrowing in SDRs amounts to USD 19.55 billion, with repayments reaching USD 14.71 billion. The interest paid on these SDRs has totaled USD 2.44 billion, further illustrating the financial strain on the nation. The revelations from the Senate meeting shed light on Pakistan's long-standing relationship with the IMF, raising concerns about the sustainability of its debt and the implications for the country's economic future.