ISLAMABAD, Oct 31 (Wealth Pakistan) – Pakistan has paid $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 under multiple IMF programmes, according to a document available with Wealth Pakistan.
Continuous Dependence on IMF Support
The data, drawn from official papers titled “Year-wise Disbursements, Interest Paid and Repayments under IMF Programmes by Pakistan (2008 till Sept 2025)”, provides one of the clearest overviews of Pakistan’s reliance on IMF financing during the past 17 years.
Between 2008 and 2025, Pakistan entered into six major IMF arrangements. These included the Stand-By Arrangement 2008, Extended Fund Facility 2013, Stand-By Arrangement 2023, Extended Fund Facility 2024, Emergency Natural Disaster Assistance 2010, and Rapid Financing Instrument Loan 2020. Together, they brought $22.86 billion in inflows aimed at stabilising Pakistan’s external accounts and meeting fiscal gaps.
Largest IMF Inflows Over the Years
The biggest inflows were recorded in 2009 ($2.75 billion), 2016 ($1.89 billion), 2021 ($1.37 billion), and 2024 ($2.15 billion). The combined Extended Fund Facility and Stand-By programmes during 2024–25 accounted for more than $2.76 billion in fresh disbursements.
Officials said these inflows were critical in preventing default-like situations and in replenishing foreign reserves during balance-of-payments crises.
Heavy Cost of Borrowing
Pakistan’s cumulative interest payments to the IMF now stand at $2.57 billion, including $530 million in surcharges. The highest annual interest payments were made in 2024 ($427 million), 2023 ($130 million), 2022 ($133 million), and 2021 ($96 million).
The surcharge element alone has cost Pakistan over half a billion dollars. It was triggered by the country’s extended borrowing beyond its IMF quota, which carries additional penalty rates.
Repayments Add to Fiscal Pressure
According to the data, Pakistan has repaid $14.23 billion in principal under different IMF programmes. Major repayments were made between 2014 and 2016 for the 2008 Stand-By Arrangement, totalling $6.46 billion, and between 2018 and 2024 for the 2013 Extended Fund Facility, amounting to $5.58 billion. Repayments under the Rapid Financing Instrument Loan taken during the pandemic reached $1.33 billion.
These figures reflect the country’s increasing debt obligations and its pattern of borrowing new funds while repaying older ones.
Persistent Cycle of Borrowing and Repayment
The data shows a consistent cycle that defines Pakistan’s economic landscape. Each new IMF programme began before the previous one ended, reinforcing structural weaknesses such as low exports, fiscal imbalances, and delayed reforms.
Economists say that Pakistan’s repeated return to IMF support demonstrates its failure to sustain domestic reforms needed to achieve economic independence.
Future Commitments Under the New Facility
The latest Extended Fund Facility (2024–25), worth nearly $3.97 billion, is seen as essential for Pakistan’s short-term stability. However, it will also increase future repayment and interest obligations.
While recent disbursements have helped restore investor confidence and stabilise the currency, they also deepen the long-term burden of external debt.
A Costly Reliance
Between 2008 and September 2025, Pakistan received $22.86 billion, repaid $14.23 billion, and paid $2.57 billion in interest and surcharges to the IMF. These numbers highlight the financial cost of dependence on the Fund—an ongoing pattern that continues to shape Pakistan’s economic future.