Pakistan ranks up in IMF list, but as 4th largest borrower after fresh loan

Pakistan has become the fourth-largest borrower from the International Monetary Fund (IMF) amid the country is expecting to receive a fresh loan of $3 billion within the next nine months. However, the loan is currently subject to approval by the IMF's board.

In March, the country was in fifth position among IMF's debtor, the additional $3 billion ranked it up a notch. The amount Islamabad currently owe to IMF is $10.4 billion. It is also ranked as the largest IMF borrower in Asia. Countries such as Nepal, Sri Lanka, Uzbekistan, Armenia, the Kyrgyz Republic and Mongolia are far behind in terms of borrowings from IMF.

Other countries ahead of Pakistan in terms of top three biggest debtor are Argentina ($46 billion), Egypt ($18 billion) and Ukraine ($12.2 billion).

Pakistan is currently grappling with a severe crisis in its balance of payments as a result of the spillover effects of the Russia-Ukraine war along with domestic issues. It is one of the biggest customers of the IMF with almost two dozen bailouts since the 1950s.

The fresh stand-by arrangement of the $3 billion loan has been built upon the 2019 agreement to provide a $6.5 billion bailout package, of which, Pakistan was expecting the remaining $2.5 billion.

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