Islamabad – Pakistan has paid a substantial interest amount of Special Drawing Rights (SDR) 2.815 billion, equivalent to $3.7 billion, to the International Monetary Fund (IMF) since 1984. This significant financial detail was disclosed during a session of the Senate Standing Committee on Economic Affairs.
The committee, chaired by Saifullah Abro, reviewed the IMF funds received by Pakistan from the inception of its first program until June 2024. The committee expressed dissatisfaction with the provided details and called for more comprehensive data.
Pakistan’s Financial Engagement with the IMF
According to the data, Pakistan has drawn SDR 21.789 billion against the sanctioned SDR 29.673 billion from the IMF since 1958. To date, Pakistan has entered into 24 different programs with the IMF, beginning with the first agreement in 1958 and extending to the 2023 Stand-By Arrangement (SBA). Beyond these structured programs, Pakistan has also tapped into various one-time facilities offered by the IMF, such as during the 2010 floods and the recent COVID-19 pandemic.
The current outstanding principal amount owed to the IMF stands at SDR 6369.11 million.
Committee’s Recommendations and Concerns
The committee recommended that the Economic Affairs Division (EAD) provide a detailed breakdown of IMF program-wise funds, including the amounts received and the interest ratio paid over the years. The committee stressed the importance of transparency and proper utilization of these funds, given Pakistan’s significant fiscal constraints.
Multilateral and Bilateral Project Funding
The meeting also delved into the details of external debt project-wise, received by the Federal and Provincial Governments under multilateral, bilateral, and UN agencies. Secretary for the Ministry of Economic Affairs, Dr. Kazim Niaz, provided an overview, stating that there are a total of 298 projects: 146 multilateral and 152 bilateral.
Multilateral projects include 63 funded by the World Bank, 54 by the Asian Development Bank, 6 by IFAD, 14 by the Islamic Development Bank, and 21 by the European Union. Bilateral projects feature 16 funded by China, 13 by Saudi Arabia, and 60 by Italy, Germany, France, and the UK, along with 15 by Korea. These projects are categorized into Loan and Grant Projects.
Key Projects and Financial Commitments
Among the significant projects discussed was the 762 KV transmission line from Dasu to Islamabad, for which the World Bank has committed $700 million, with $112 million already disbursed. This project is slated for completion by June 30, 2025.
The Tarbela Four Expansion Project, another major initiative, has a $390 million commitment from the World Bank, with $159 million released to date. This hydropower project is expected to be completed by September 30, 2027.
Committee’s Future Actions
The Committee decided to request complete details of all projects completed or closed from 2002 to the present. It also emphasized the need for updated progress reports on ongoing projects before the next committee meeting. Additionally, the Committee plans to examine sector-wise project completions and investigate any delays.
Foreign Exchange Reserves
Dr. Niaz informed the committee that Pakistan’s foreign exchange reserves include $4 billion from China and $5 billion from Saudi Arabia.
Meeting Attendance
The session was attended by several key figures, including Senator Taj Haider, Senator Kamil Ali Agha, Senator Rana Mahmood ul Hassan, Secretary for the Ministry of Economic Affairs Dr. Kazim Niaz, and other senior officials from relevant departments. The discussions highlighted the critical need for financial transparency and the effective utilization of funds to address Pakistan’s economic challenges.
