Pakistan Secures $57 Billion in Foreign Loans Over Five Years, Pays $3.9 Billion Interest – Startup Pakistan

The Ministry of Economic Affairs shared a report with the National Assembly, covering the period from July 2018 to June 2023. During this time, the government obtained a total of $57.27 billion in foreign loans, not counting any aid from the International Monetary Fund (IMF).

Out of this amount, $9.81 billion was allocated specifically for project financing, which means these funds were directed towards various development projects within the country.

In the same five-year period, the government paid $3.9 billion in interest on these loans. A portion of this, about $889 million, was interest specifically related to project loans.

The report also clarified the difference between foreign and domestic loans. Domestic loans, which are mainly obtained through government securities and the Central Directorate of National Savings, are not used for funding development projects. Instead, these funds are typically used for deficit financing, which helps the government manage the gap between its revenue and expenses.

In a separate report, the Ministry of Finance provided details about the collection of advance tax from mobile users over the past five years. In 2020, Rs50 billion was collected as advance tax from mobile users, and this figure increased significantly to Rs92 billion in 2024. The Ministry of Information and Technology is responsible for keeping track of the data on mobile users, which plays a role in determining tax collections.

This information highlights the government’s reliance on both foreign and domestic loans to meet financial needs, as well as the growing contribution of mobile users to the country’s tax revenues.