Mohsin Siddiqui (Chief Reporter)
Pakistan has made substantial payments in interest to the International Monetary Fund (IMF), amounting to Special Drawing Rights (SDR) 2.815 billion since 1984. This information was disclosed during a meeting of the Senate Standing Committee on Economic Affairs. The committee, chaired by Saifullah Abro, was briefed on the history and current status of IMF funds received by Pakistan, spanning from the first program in 1958 to the latest updates as of June 2024.
The committee was informed that Pakistan has drawn a total of SDR 21.789 billion against the sanctioned amount of SDR 29.673 billion since 1958. Despite this significant financial engagement, the committee expressed dissatisfaction with the details provided and called for a more comprehensive breakdown of IMF funds, including the amount received and the interest ratio paid by Pakistan over the years.
Pakistan has engaged in 24 programs with the IMF, beginning with its first program in 1958 and the most recent being the 2023 Stand-By Arrangement (SBA). Besides these programs, Pakistan has accessed several one-time facilities from the IMF, such as during the 2010 floods and the Covid-19 pandemic. According to available records, Pakistan has an outstanding principal amount of SDR 6.369 billion.
The committee also reviewed the external debt received by the Federal and Provincial Governments through multilateral, bilateral, and UN agencies. Dr. Kazim Niaz, Secretary for the Ministry of Economic Affairs, provided an overview, stating that Pakistan currently has 298 active projects: 146 multilateral and 152 bilateral.
Among the multilateral projects: 63 are funded by the World Bank 54 by the Asian Development Bank (ADB) 6 by the International Fund for Agricultural Development (IFAD) 14 by the Islamic Development Bank 21 by the European Union
For bilateral projects: 16 are funded by China 13 by Saudi Arabia 60 by countries such as Italy, Germany, France, and the UK 15 by Korea
These projects are classified into loan and grant categories, with multilateral projects outnumbering bilateral ones. The chairman emphasized the need for the Economic Affairs Division (EAD) to ensure proper and transparent utilization of these loans, considering Pakistan’s fiscal constraints.
The committee was informed about the specifics of World Bank loan-financed projects. Currently, there are 58 such projects with a total commitment of $14.806 billion. Of this, $6.162 billion has been released to date. Additionally, a major project, the 762 KV transmission line from Dasu to Islamabad, is underway with a $700 million commitment from the World Bank.
The committee recommended that the EAD provide a detailed, program-wise breakdown of IMF funds, including the amounts received and the interest ratios paid. This recommendation aims to ensure greater transparency and accountability in managing Pakistan’s financial engagements with the IMF.
