Pakistan is on track to become the fourth-largest borrower from the International Monetary Fund (IMF) globally. Recently, the approval of an additional $3 billion loan as part of a standby arrangement means Pakistan’s total borrowing from the IMF will reach $10.4 billion within the next nine months.
As of March 31, 2023, Pakistan ranked fifth among countries with the highest borrowing from the IMF. However, with this new loan, Pakistan will move up to the fourth position on the list.
At present, Argentina holds the top position with $46 billion in IMF loans, followed by Egypt with $18 billion and Ukraine with $12.2 billion. Previously, Ecuador held the fourth spot with $8.2 billion in loans, but Pakistan will surpass Ecuador’s borrowing amount with its new loan.
This significant increase in borrowing highlights Pakistan’s reliance on IMF support to tackle its economic challenges and stabilize its financial situation. The additional funds will assist Pakistan in meeting its financial obligations and implementing necessary reforms to foster economic growth and stability.