ISLAMABAD: Pakistan has secured $57.27 billion in external loans over the past five years, excluding the International Monetary Fund (IMF) program, according to a recent report presented by the finance ministry in the National Assembly on Monday.
Out of this total, $9.81 billion was allocated for various projects, while $3.9 billion has been repaid in interest or markup on these loans.
This development comes as Pakistan strives to finalize a $7 billion IMF bailout package to bolster its economy. An agreement on the 37-month loan program was reached in July, though it remains subject to approval from the IMF’s executive board and confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.
Finance Minister Muhammad Aurangzeb highlighted in his June 12 budget speech that more than half of Pakistan’s budget will be allocated to interest payments, amounting to Rs9,775 billion. The projected budget deficit for the fiscal year 2024-25 stands at 6.9% of GDP.
According to the Pakistan Economic Survey, Pakistan’s public debt has surged to Rs67,525 billion in the fiscal year, an increase of Rs4,644 billion from the previous year, driven by the federal primary deficit and interest on the debt.
