Pakistan ranks third among the countries with the highest debt to the International Monetary Fund (IMF) according to IMF data. The ranking places Pakistan behind Argentina and Ukraine on the list of top IMF borrowers.

The data reflects cumulative lending arrangements and ongoing financial support programs extended by the IMF to stabilize economies facing balance-of-payment challenges. Pakistan has relied on multiple IMF programs over the years to support foreign reserves and implement economic reforms.

Experts note that IMF debt ranking is influenced by the size of loan programs, repayment schedules and broader macroeconomic conditions.

The data has sparked debate on debt sustainability, economic reforms, and long-term financial independence. The government says IMF assistance is crucial for economic reforms and financial stability while critics warn that growing debt continues to strain the country’s economy and public finances.

 IMF programs help avoid immediate economic collapse; they also affect everyday life. Conditions attached to IMF loans often lead to:

• Higher electricity and fuel prices
• Increased taxes
• Reduced government subsidies
• Inflationary pressure

These measures disproportionately impact the middle and lower-income groups, making economic adjustment socially and politically challenging.

 Moving forward, Pakistan must focus on breaking the cycle of repeated borrowing by implementing deep and consistent structural reforms. Strengthening tax collection by expanding the tax base, promoting export-led growth, and reducing dependence on imports are critical steps toward economic stability. Equally important are improving governance, ensuring transparency in public spending, and supporting the private sector to create jobs and boost productivity. By prioritizing long-term economic planning over short-term fixes, Pakistan can gradually reduce its reliance on IMF support and build a more resilient, self-sustaining economy.

Credit: Independent News Pakistan (INP)