Pakistan has paid $2.4 billion in interest on loans received from the International Monetary Fund (IMF) so far, as disclosed by Finance Division officials to the Senate Standing Committee on Finance & Revenue on Thursday.
The Joint Secretary of Finance informed the committee that Pakistan still owes Special Drawing Rights (SDRs) amounting to $6.36 billion to the IMF, which must be repaid within the next 3-5 years. The officials highlighted that the 2023 standby arrangement with the IMF carries a significant interest rate of 5.09 percent.
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Officials from the State Bank of Pakistan (SBP) provided further details, stating that the country has entered into 24 full loan programs and four one-time loan agreements with the IMF to date. They also noted that from 2008 to 2023, Pakistan successfully completed six loan programs, with the 2008 and 2010 arrangements fully repaid at an interest rate of 1.58 percent.
When questioned about the amount due to the IMF this year, the SBP officials mentioned that they did not have the complete details available at the time but assured the committee that they would provide the information after reviewing prior data. The committee chairman expressed frustration that the government continually relies on the IMF for financial assistance instead of focusing on increasing exports and fostering business development.
