During a recent meeting of the Senate’s Standing Committee on Economic Affairs, it was revealed that Pakistan has paid over $3.5 billion in interest on loans to the International Monetary Fund (IMF) over the past four decades. This significant amount, which exceeds the total loan amount, has had a substantial impact on Pakistan’s economy. Chaired by Senator Saifullah Abro at the Parliament House, the committee heard details presented by the Ministry of Finance regarding the loans and repayments made to the IMF.

According to the briefing by officials from the Ministry of Finance and the State Bank of Pakistan, Pakistan’s interest payments to the IMF have surpassed $3.60 billion, a significant figure that underscores the country’s financial commitments. This translates to over Rs1,000 billion in Pakistani currency. Over the last 30 years, Pakistan has borrowed a substantial amount, around $29 billion, from the IMF and repaid more than $21.72 billion during the same period.

In the past four years, Pakistan borrowed over $6.26 billion from the IMF and repaid $4.52 billion, with an additional payment of over $1.10 billion in interest within the same period. In 2024, Pakistan borrowed $1.35 billion in Special Drawing Rights (SDRs) from the IMF and repaid $646.69 million in SDRs.

Furthermore, the Senate’s committee was briefed about the ongoing projects in the country financed through loans from the World Bank. The Ministry of Economic Affairs revealed that there are 58 ongoing projects in the country, funded by the World Bank, with a commitment of $14,806 million. These projects, which include infrastructure development and social welfare initiatives, are expected to significantly contribute to Pakistan’s economic growth. The committee was also informed about specific projects, including the 762 kV transmission line from Dasu to Islamabad and the Tarbela Fourth Extension Project, which are expected to improve the country’s energy infrastructure and reduce energy shortages.