Pak is IMF's 4th largest borrower, still a reckless defence spender

It has spent $153.25 billion for defence purchases from 2000 to 2023.

- ABHINANDAN MISHRA

Pakistan's latest $760 million loan from the IMF has pushed its total debt to $8.6 billion to the international body, making it the fourth-largest borrower among 102 countries and the only nation to receive IMF funds between 1 May and 15 May 2025.

This loan comes amid India's military operation, "Sindoor".

As per official data compiled by the IMF, since 1958, Pakistan has taken approximately $28.96 billion across 25 IMF arrangements. Yet, what has not been documented enough is that alongside this dependence on IMF to keep its economy afloat, Pakistan has officially spent a staggering $231.84 billion on defence purchases from 1960 to 2023, including $153.25 billion from 2000 to 2023, raising questions about how a cash-strapped nation prioritizes its resources.

This number does not include the unclassified military spendings.

In another significant comparison, Pakistan's economy, with a GDP of $340 billion (0.3% of global GDP), accounts for nearly 6% of the IMF's outstanding credit.

The latest disbursement that happened in May is part of a $7 billion Extended Fund Facility (EFF) signed in September 2024.

The disbursement took place even as India was actively targeting and destroying terrorist camps and headquarters. Despite calls from national and international observers urging the postponement—or outright denial—of IMF aid to Islamabad until it dismantled these terror networks, the funds were released without such conditions.