Pakistan to Repay $7 Billion IMF Loan with 5% Interest Over 10 Years

Islamabad: Details have emerged regarding Pakistan’s $7 billion loan from the International Monetary Fund (IMF), revealing that the country will repay the loan at an interest rate of 5%, with an additional 50 basis points in service charges. The loan will be repaid over a period of 10 years.
According to the Ministry of Finance, the repayment will be made in 12 installments on a semi-annual basis. This loan is part of Pakistan’s broader bailout package with the IMF, which spans 37 months.
The first tranche of the $7 billion loan was received in September 2023. In addition to the IMF loan, Pakistan has also taken loans from Chinese banks and other financial institutions at an interest rate of 7-8%.
The IMF loan is crucial for Pakistan to stabilize its economy and address its balance of payments crisis, with the government planning to make regular repayments as part of its commitment to financial reforms under the IMF program.