IMF Debt: Surprising Rankings of India and Pakistan Revealed

Rapid Summary

• IMF Aid to Pakistan: On May 9,2025,the IMF disbursed $1 billion to Pakistan under its Extended Fund Facility (EFF),bringing total disbursements in the program to $2.1 billion; the facility allows access to $7 billion overall.
• New Criticism by India: India criticized IMF’s continued financial support for Pakistan, citing concerns over economic mismanagement and alleged misuse of funds for terror activities.
• Pakistan’s Loan Dependence: since 1958, Pakistan has engaged in 25 loan deals with the IMF worth $44.57 billion. It still owes $8.3 billion and ranks as one of the top five global borrowers from the IMF.
• Global Debt Ranking: Argentina tops the list with outstanding debt of $40.26 billion; India is not listed as a debtor and has not borrowed from IMF since repaying all loans by 2000.
• india’s Status with IMF: India is now a major contributor holding significant voting power with an SDR quota of 13,114.4 million but no current debts.
• Recent Escalation Between Nations:

– April terror attack on Indian tourists led to retaliation through Operation Sindoor targeting Pakistani terror camps.
– Ceasefire was reached after diplomatic intervention amidst tensions at LoC following counter-offensives.

indian Opinion Analysis

The disbursement of yet another bailout package to Pakistan highlights longstanding global concerns about sustainability and accountability within international lending practices. India’s critical stance underscores fears that financial aid could inadvertently sustain state-sponsored terrorism or other destabilizing actions in South Asia-a region already fraught with escalating hostilities.

While IMF assistance aims at stabilizing vulnerable economies like Pakistan’s, repeated bailouts without demonstrable reform raise questions about efficacy and geopolitical consequences affecting regional stability and governance credibility worldwide.

India’s non-dependency on IMS loans as early repayment reflects its robust fiscal management historically-a sharp contrast positioning it as both an influential stakeholder within external governance mechanisms like SDR quotas while maintaining national sovereignty without recurring external reliance or conditionality stipulation impacting alongside EM several frontsuits .

Read More