By Abdul Ghani
Pakistan has spent a staggering $2.57 billion in interest and surcharges to the International Monetary Fund (IMF) since 2008, while receiving a total of $22.86 billion in financial assistance, highlighting the country’s reliance on Pakistan IMF debt for nearly two decades, according to documents obtained by this reporter.
Major IMF Programmes Between 2008 and 2025
Between 2008 and 2025, Pakistan entered seven major IMF programmes, including the Stand-By Arrangement of 2008, the Extended Fund Facility of 2013, the Stand-By Arrangement of 2023, the Extended Fund Facility of 2024, Emergency Natural Disaster Assistance in 2010, the Extended Fund Facility of 2019, and the Rapid Financing Instrument Loan of 2020. These arrangements brought in around $22.86 billion, aimed at stabilizing Pakistan’s external accounts and covering fiscal shortfalls.
Largest Fund Inflows and Their Impact
The largest inflows occurred in 2009 ($2.75 billion), 2016 ($1.89 billion), 2021 ($462 million), and 2024 ($2.79 billion). Officials say these funds have been crucial in preventing default-like scenarios and replenishing reserves during severe balance-of-payments crises.
Interest Payments and Surcharges
Interest payments alone have totaled about $2.57 billion, including $530 million in surcharges. The heaviest annual interest payments came in 2024 ($514 million), 2023 ($445 million), 2022 ($195 million), and 2021 ($135 million). Surcharges were triggered by borrowing beyond Pakistan’s IMF quota and have cost the country more than half a billion dollars.
Principal Repayments Highlight Economic Pressure
Pakistan has repaid $14.87 billion in principal under different IMF programmes. Large repayments took place between 2014 and 2016 for the 2008 Stand-By Arrangement, totaling $2.08 billion, and between 2018 and 2024 for the 2013 Extended Fund Facility, amounting to $6.5 billion. These repayments underline the country’s ongoing financial obligations and mounting external debt burden.
Structural Weaknesses and Dependence on IMF
Economists say Pakistan’s repeated returns to the IMF reflect a lack of long-term domestic reforms. The latest Extended Fund Facility (2024-25), worth around $7 billion, is essential for short-term economic stability but also increases future repayment and interest obligations. While these funds temporarily boost investor confidence and support the currency, they add to the long-term cost of dependency on external financing.
Author Profile
-
Abdul Ghani is a sharp analyst focused on Pakistan's industrial transformation. His reporting reveals the textile sector's pivot from basic cotton to high-growth value-added apparel.
Ghani's work underscores the triumph of knitwear and garments in boosting exports, while warning policymakers to tackle energy costs to secure long-term global competitiveness.
