Cash-strapped Pakistan may soon become the fourth highest IMF debtor. Currently, in terms of loans, Pakistan is in the fifth position with $7.4 billion. With loans from the global lender likely to amount to $10.4 billion, Pakistan will overtake Ecuador to become the world's fourth-largest IMF borrower
As per a PTI report, Pakistan is set to receive another $3 billion in the next nine months under Stand-By Arrangement with IMF. This deal is yet to be approved by the IMF board
Pakistan is facing an acute balance of payments crisis following the Ukraine war and other challenges including inflation. Out of the 93 countries which owe money to IMF, Pakistan has the lion’s share of 71.7% of the total outstanding balance of $155 billion
Pakistan is the biggest IMF lender in the Asian region. As of March 31, India’s Outstanding Purchases and Loans (SDR) to IMF stand at $5566.08 million
Argentina ranked first with $46 billion loans from IMF. Argentina’s economic crisis began in 2001 when its currency, Peso, began to be devalued
Egypt is the second biggest borrower of IMF with debts amounting to $18 billion. In December 2022, IMF Executive Board approved a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt of about US$3 billion
War-hit Ukraine is the third highest debtor of IMF with loans worth $12.2 billion. Since the Russian invasion in 2021, Ukraine’s economy has been under massive stress. The IMF board approved Extended Fund Facility (EFF) for Ukraine which allows it to draw up to $890 million. The EFF forms part of a US$115 billion total support package for Ukraine
Ecuador took the fourth spot with $8.2 billion worth of loans from the IMF. As per a Reuters report, ‘Ecuador's government is seeking to activate credit lines with international lenders in an effort to mitigate expected El Nino weather disruptions’. Last year, Ecuador finalised a $6.5 billion loan program with the IMF
As per reports citing experts, Pakistan will face severe inflation with the prices of basic commodities touching the roof. This might be followed by increased levels of employment paving the way for more unlawful activities. Further, import and export ties with other nations will also get strained