Pakistan’s IMF Borrowing History: PPP Tops in Loans, PTI in Interest Payments
- The Pakistan Peoples Party (PPP) government holds the record for the largest IMF borrowings.
- The Pakistan Tehreek-e-Insaf (PTI) administration paid the highest interest on IMF loans.
- A new $7 billion IMF loan program aims to stabilize Pakistan’s economy amid ongoing challenges.
A recent document has disclosed that the Pakistan Peoples Party (PPP) government, which was in power from 2008 to 2013, leads in securing the largest amount of loans from the International Monetary Fund (IMF). During this period, the PPP borrowed a staggering 5.23 billion Special Drawing Rights (SDRs), equivalent to over $7.72 billion. The PPP also repaid more than $3 billion in loans and paid over $484 million in interest to the IMF.
In comparison, the Pakistan Muslim League-Nawaz (PML-N) government, which ruled from 2013 to 2018, borrowed 4.39 billion SDRs, translating to over $6.48 billion. The PML-N administration repaid loans totaling 4 billion SDRs, or about $5.92 billion, and paid over $317 million in interest.
The Pakistan Tehreek-e-Insaf (PTI) government, which was in power from 2018 to 2022, borrowed over 4.5 billion SDRs, roughly $6 billion, from the IMF. Notably, the PTI administration paid the highest interest on these loans, totaling $791 million, surpassing the interest payments made by both the PPP and PML-N governments.
Recently, the PML-N-led coalition reached a new agreement with the IMF for a $7 billion, 37-month loan program. This deal, which includes tough measures such as increasing taxes on farm income, aims to stabilize Pakistan’s economy, which has been grappling with high inflation and economic instability. The IMF has emphasized that the program is designed to support long-term stability and inclusive growth for the South Asian country.
Pakistan’s economic challenges have led to 22 IMF bailouts since 1958. As of July 11, 2024, Pakistan is the fifth-largest debtor to the IMF, owing $6.28 billion. The latest economic crisis is among the most severe, pushing the country to the brink of a sovereign default last summer before receiving a crucial IMF bailout.
