- Reuters
- 3 Hours ago

Pakistan obtained IMF loan at over 5 per cent interest rate in 2023, Senate told
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- Web Desk
- Aug 23, 2024

WEB DESK: The Senate Standing Committee on Economic Affairs was briefed that Pakistan secured a loan from the International Monetary Fund (IMF) in 2023 under a Standby Arrangement (SBA) at an interest rate of 5.09 per cent.
This information was shared during a meeting held at the Parliament Lodges on Thursday, chaired by Senator Saifullah Abro.
Officials from the Ministry of Finance and the State Bank of Pakistan (SBP) informed the committee that the country received $3 billion under the SBA in 2023, with the loan carrying a notably high-interest rate.
The committee sought detailed information on how the borrowed funds were utilised, especially in light of reports that Rs90 billion was spent on political schemes following the IMF loan.
The committee was also informed that the IMF has disbursed 2,126 million Special Drawing Rights (SDRs) to Pakistan so far. The country is required to repay over 6.36 billion SDRs within the next three to five years. Since 1984, Pakistan has paid $2,439 million in interest to the IMF.
Officials from the State Bank of Pakistan highlighted that recurring balance of payments issues have consistently forced the country to seek financial assistance from the IMF.
The committee was provided with a comprehensive briefing on all ongoing and completed projects under the Power and Water Resources Division, including details of the tendering processes, the latest progress, and the interest paid by the federal government and relevant departments.
Furthermore, the committee received a year-by-year breakdown of the IMF funds received, repaid, and the interest paid by Pakistan from the first IMF programme until June 2024.
Records show that Pakistan has drawn 21,260.08 million SDRs from the IMF since 1958, with an outstanding principal amount of 6,369.16 million SDRs as of 30th June 2024.
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