Pakistan has so far paid $2.4 billion interest on loans received from the International Monetary Fund (IMF), Finance Division officials informed the Senate Standing Committee on Finance & Revenue on Thursday.
Joint Secretary Finance briefed the committee that Pakistan still owes Special Drawing Rights (SDRs) worth $6.36 billion to the IMF in the next 3-5 years. Officials said the 2023 standby arrangement with the Washington-based lender came in with a hefty 5.09 percent interest rate.
Officials of the State Bank of Pakistan (SBP) informed the committee that the country has to date signed 24 full loan programs and four one-time loan facilities from the IMF.
SBP officials further explained that in 2008-2023, Pakistan unlocked six loan programs of which the 2008 and and 2010 facilities have been fully repaid at an interest rate of 1.58 percent.
When asked how much amount is due to the lender this year, central bank officials said they didn’t have the full details yet but assured to disclose them after checking prior data.
The committee chairman expressed his resentment that the government always goes to the IMF for help instead of increasing exports and developing businesses.
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To pay Principal + Interest, more loan will be received from IMF and then to pay this loan the more loan and the episodes remain continued, what a pity on the corrupted politicians and bureaucrats of Pakistan, they are eating up Pakistan’s resources which now stand on IMF loans. They deserve capital punishments.