Pakistan owes $85.5 billion to the world with China being the single largest lender. China has contributed 18% of the total foreign loans taken by Pakistan. Other major lenders include Saudi Arabia, Japan, the UAE, and France
Coming to the international donor agencies, the biggest lender to Pakistan is the International Development Association (IDA) of the World Bank Group. It has a 16% share in the total foreign loans Pakistan owes to the world, followed by Asian Development Bank having 12.5% of the total loan.
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Pakistan owes less than 7% of the loan to the International Monetary Fund. The data revealed in this article has been sourced from an IMF report of July 2019.
Earlier on 3rd July, Pakistan opted for a $6 billion bailout package from IMF. It was its 13th since the 1980s.
In order to boost Pakistan’s foreign exchange reserves, it was necessary to take loans from the IMF. But the continuous devaluation of rupee against the dollar has affected almost all industries in Pakistan. With ever-rising inflation and prices getting high, the life of a common man in the country has become miserable.
In order to find solution, the government of Pakistan has taken loans from friendly countries including China, Saudi Arabia, the UAE, and Qatar.