Pakistan Paid Over $3.6 Billion In Interest To IMF
The documents presented in the meeting revealed that the interest paid amounts to over Rs 1,000 billion in Pakistani currency.
Pakistan has paid more than $3.6 billion in interest on loans to the International Monetary Fund (IMF) in the last 40 years, the finance ministry of the cash-strapped government has informed Parliament.
This was revealed by the government during a meeting of the Senate's Standing Committee on Economic Affairs on Thursday at the Parliament House, where the Ministry of Finance presented details of the loans and repayments made to the Washington-based global lender so far.
According to The Express Tribune newspaper, during the briefing by officials from the Ministry of Finance and the State Bank of Pakistan, it was disclosed that Pakistan has paid over $3.60 billion in interest to the IMF.
The documents presented in the meeting revealed that the interest paid amounts to over Rs 1,000 billion in Pakistani currency.
It also emerged that over the past 30 years, the cash-strapped country has borrowed approximately $29 billion from the IMF and has repaid more than $21.72 billion in the same period.
In the last four years alone, Pakistan borrowed over $6.26 billion from the IMF and repaid $4.52 billion. Additionally, in the last four years, Pakistan has 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 are an international reserve asset created by the IMF. They are used to supplement the official reserves of member countries and can be exchanged among governments for freely usable currencies in times of need. The value of SDRs is based on a basket of major international currencies.
The Ministry of Finance officials also informed the committee that Pakistan borrowed $9.55 billion SDRs ($25.94 billion) from the IMF since 1984 and repaid $14.71 ($19.51b) billion SDRs, with $2.44 ($3.23b) billion SDRs paid in interest.
The committee chairman Senator Saifullah Abro said that the country was not being destroyed on its own 'but we all have a part in its destruction'.
The committee later sought details of every programme with the IMF, stating that the committee should be informed about what has happened in each programme, according to the paper The development comes as Pakistan is close to getting another IMF loan of about $7 billion, which will be provided in three years.
