Pakistan gets $31.1 billion from IMF since 1958, parliamentary panel reviews loan details

Pakistan has secured SDR21.789 billion (approximately $31.1 billion) from the International Monetary Fund (IMF) out of a sanctioned amount of SDR29.673 billion since 1958. 

As per a media report, the Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, has requested a detailed breakdown of IMF loans, including amounts received and interest paid over the years.

According to the Economic Affairs Division which shared this information during the parliamentary panel’s meeting on Thursday, Pakistan has paid SDR2.815 billion (over $3.60 billion) in interest to the IMF since 1984. 

Since its first agreement in 1958, Pakistan has participated in 24 IMF programs, including the latest 2023 Stand-By Arrangement (SBA). The country has also accessed special IMF facilities for emergencies, such as the 2010 floods and the COVID-19 pandemic. The outstanding principal amount currently stands at SDR6.369 billion.

The IMF’s Special Drawing Rights (SDR) is an international reserve asset created by the IMF in 1969 to supplement member countries’ official reserves. 

To date, a total of SDR660.7 billion (around US$943 billion) have been allocated globally by the Fund. The largest-ever allocation, SDR456 billion, was approved on August 2, 2021, to address global reserve needs during the COVID-19 pandemic.

Dr. Kazim Niaz, Secretary for the Ministry of Economic Affairs, provided an overview of 298 projects funded through multilateral and bilateral sources. This includes 146 multilateral and 152 bilateral projects. Key multilateral contributors are the World Bank with 63 projects, the Asian Development Bank with 54 projects, and the Islamic Development Bank with 14 projects. Bilateral funding includes 16 projects from China, 15 from Korea, and 13 from Saudi Arabia, among others.

The committee was informed of 58 World Bank loan-financed projects in Pakistan, with a commitment of $14.806 billion, of which $6.162 billion has been disbursed. Notable projects include the Dasu-Islamabad Transmission Line and the Tarbela Four Expansion Project.

The committee has requested the EAD to provide details of completed or closed projects from 2002 onward and to update progress reports before the next meeting. They plan to review sector-wise projects to assess completion status and address delays.

Chairman Abro also questioned the handling of Independent Power Producers (IPPs) proposals, noting ongoing issues with these agreements. Dr. Niaz added that Pakistan’s foreign exchange reserves include $4 billion from China and $5 billion from Saudi Arabia.

The meeting was attended by Senators Taj Haider, Kamil Ali Agha, Rana Mahmood ul Hassan, Dr. Kazim Niaz, and other senior officials.