Is the IMF’s $162 Billion Tab a Lifeline or a Trap for Pakistan? -THINK TANK JOURNAL

IMF's $162 Billion Tab: Lifeline or Trap for Pakistan?

The International Monetary Fund (IMF) serves as a safety net for nations facing economic challenges. As of October 2025, 86 countries owe over $162 billion in Special Drawing Rights (SDRs), equivalent to about $1.36 per SDR.

This significant debt is a reflection of fragile economies struggling with inflation, currency crashes, and geopolitical shocks. The list of indebted nations spans Latin America, Africa, and other regions, highlighting global vulnerabilities.

Pakistan's Economic Challenges

Pakistan is a notable example, with an $8.3 billion IMF debt as part of a larger $87 billion obligation. This situation raises questions about the IMF's role in supporting or exacerbating Pakistan's economic difficulties.

The IMF's support can be a lifeline, but it can also be a trap if not managed carefully.

Author's summary: IMF's $162 billion aid may be a double-edged sword for Pakistan.

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THINK TANK JOURNAL THINK TANK JOURNAL — 2025-10-17