Pakistan one of the best customers of IMF

According to a report by The Express Tribune dated April 29, 2019, Pakistan has borrowed around SDR 13.79 billion from the International Monetary Fund (IMF), out of which 47% of the loans were secured by PPP, followed by PML-N at 35%, while the military dictatorships lag behind with a mere 18%.

Pakistan joined (IMF) in 1950 as newly established country was facing fiscal problems since its creation in 1947 from British rule. In 1958, for the first time, Pakistan went to IMF for bailout. For this, IMF lent out US$25,000,000 ‑ originally the loan-amount is given in SDR; for this article it is considered to be 1SDR = 1USD to Pakistan on standby arrangement basis on December 08, 1958.

Pakistan again went to IMF in 1965. This time, IMF gave US$37,500,000 to war-torn nation on 16 March 16, 1965.

Three years later, Pakistan again went to IMF for third time for balance of payment problems for which IMF gave US$75,000,000 on October 17, 1968.

In 1971, Pakistan lost its Eastern half, East Pakistan, after the Bangladesh Liberation War. This war caused huge loses to Pakistan. For which, Pakistan got loan a loan of US$84,000,000 in 1972, second loan of US$75,000,000 in 1973 and fourth of US$75,000,000 in 1974 to meet its growing needs. 

In 1977, a standby arrangement of US$80,000,000 was made on urgent basis. 

Three years later, an extended facility of US$349,000,000 was reached in 1980.

Struggle of Pakistan continued, as Pakistan withdrew another US$730,000,000 as Pakistan was already part of US cold war against Soviet Union.

Another era was started, as democracy came back to Pakistan but old ways to handle economy poorly continued. 

Benazir Bhutto government withdrew US$194,480,000 as standby arrangement and another US$382,410,000 in shape of structural adjustment facility commitment on December 28, 1988.

In 1990, government of Nawaz Sharif decided against going to IMF instead arranged donations from friendly countries like Saudi Arabia.

In 1993, Benazir Bhutto again came to power and her government again went to IMF and reached an agreement to get standby arrangement of US$88,000,000 on September 16, 1993.

Poor handling of economy continued by her government as she got loan of US$123,200,000 under the extended fund facility and another US$172,200,000 were borrowed on February 22, 1994.

During that period economy of Pakistan remained in poor shape and Pakistan had to go to IMF again for record third in the period of Bhutto government.

This time Pakistan got an amount of US$294,690,000 on 13 December 1995.

 In 1997, Nawaz Sharif came to power. Benazir Bhutto government was sacked and left economy of Pakistan in worst shape.

Sharif government went to IMF on urgent basis for the first time and reached an agreement to get two amounts of US$265,370,000 and US$113,740,000 on October 20, 1997.

In 2008, Yousaf Raza Gillani received a US$7.6 billion loan from the IMF.

In 2018, Imran Khan became Prime Minister of Pakistan. For this, they arranged friendly loans from Saudi Arabia, United Arab Emirates and China to avoid tough IMF conditions. 

In 2019, when economic conditions worsened, they went to IMF for the twenty-second time for a loan of US$1 billion. 

IMF gave loan based on conditions such as hike in energy tariffs, removal of energy subsidy, increase in taxation, privatization of public entities and fiscal adjustments to the budget.