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Pakistan to receive 1.21 billion dollars from IMF amidst crushing debt burden
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News18•08-10-2026, 23:29
Pakistan to receive 1.21 billion dollars from IMF amidst crushing debt burden
- •The IMF has paved the way for providing about 1.21 billion dollars in funding to Pakistan, pending final approval from its executive board.
- •Pakistan's total government debt reached approximately 307.5 billion dollars by June 2025, accounting for 76.6 percent of its GDP.
- •Debt repayment for the 2025-26 period is projected to be around 92.1 billion dollars, creating a massive financial burden.
- •IMF funding comes with strict conditions requiring tax hikes, spending controls, and economic reforms, forcing Pakistan to dance to the IMF's tunes.
- •External debt stands at around 107 billion dollars, with significant bilateral and commercial loans owed to China alongside creditors.
Key Questions Answered
According to IMF data, Pakistan's total government and government-guaranteed debt reached approximately $307.5 billion by June 2025, which accounts for about 76.6 percent of the country's GDP.
Pakistan is preparing to pass roughly 174 legal and legislative amendments through Parliament to fulfill the strict conditions tied to its international financial support packages.
Pakistan's external debt includes substantial bilateral and commercial loans from China, alongside obligations to multilateral institutions like the IMF; Chinese bilateral loans accounted for about $23.5 billion and commercial bank loans stood at around $5.7 billion.
