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IMF loan to Pakistan surges by 20%, as Pak Rupee erodes

International Monetary Fund (IMF) loan to Pakistan has increased by 20 percent due to the persistent fall in the value of Pak rupee against US dollar during the last four years, Geo News reported on 5th Dec 2012 (Wednesday). Pakistan has already paid back $2.28 billion to IMF, while $6.00 billion still remains outstanding.

Sources close to the Pakistan ministry of finance said that due to continued depreciation of Pak rupee against dollar, the amount of Pakistan’s IMF loan rose by 20 percent, as when the loan was taken the US dollar valued at nearly PKR 79, which has by now jumped to PKR96.

Besides, Pakistan is paying 1 to 2.5 percent interest on IMF loan annually. Pakistan thus far has already paid back $2.28 billion against IMF loan including the interest. Pakistan had taken over $7.5 billion loan from IMF in 2008 under Stand By Agreement, following deterioration of its balance of payment position

Source: CADTM-Pakistan

Publishing Date: December 7th 2012

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