Details of IMF Programmes Reviewed as Pakistan’s External Debt Reaches USD 92.2 Billion

October 14, 2025 —  ISLAMABAD: Pakistan’s external debt and liabilities have reached USD 92.2 billion as of August 31, 2025, according to the Debt Management Office. The figures were shared during a meeting of the Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, where officials also reviewed details of IMF programmes and raised concerns over transparency in foreign-funded development projects.

Highlights

• Pakistan’s external debt and liabilities stood at USD 92.2 billion by the end of August 2025.
• Medium- and long-term loans accounted for USD 89.1 billion of the total.
• The Senate panel reviewed the complete history of IMF loans and grants up to September 2025.
• Lawmakers directed the Ministry of Finance and SBP to provide detailed loan data from 2008 onwards.
• Major procurement irregularities were identified in ADB-financed CAREC Tranche projects.
• Concerns were raised over Sindh departments’ reluctance to adopt EPADS and issues in solar energy and road sector projects.
• Proposals were made to enhance transparency, mandate digital procurement, and involve investigative bodies.

Debt Composition and Committee’s Concerns

Officials from the Ministry of Finance’s Debt Management Office informed the committee that medium- and long-term loans formed the bulk of the external debt, amounting to USD 89.1 billion. Multilateral loans accounted for USD 42.58 billion, while bilateral debt stood at USD 21.82 billion.

During the session, the committee reviewed the complete record of IMF programmes, loans, and grants received by Pakistan up to September 2025. Examining data provided by the Finance Division and the State Bank of Pakistan, Senator Abro observed that borrowing had evolved from an economic necessity into a recurring practice. He remarked, “It has become customary to borrow for projects and then mortgage the same projects for further loans,” stressing that borrowing must support national self-reliance rather than perpetuate a debt cycle.

The committee directed the Ministry of Finance and the SBP to submit comprehensive loan details from 2008 onwards, including utilisation, repayments, and interest payments. It also called for clarification on Rs90 billion allocated under special funds in the 2022-23 federal budget, including their sources and utilization.

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ADB-Financed CAREC Tranches Under Scrutiny

The committee examined the performance of the National Highway Authority (NHA) and Economic Affairs Division (EAD) regarding ADB and World Bank-financed projects, emphasizing the need for transparency, audit compliance, and accountability.

Particular concern was directed at ADB-funded CAREC Tranches I, II, and III, covering the Rajanpur–Dera Ghazi Khan–Dera Ismail Khan corridor, where procurement irregularities were flagged. Senator Abro described the situation as one of the most serious procurement controversies in recent years, citing incomplete documentation and repeated delays.

The committee reiterated that it had previously declared the Tranche-III bids technically invalid due to ADB’s failure to submit key audit and bidding documents. The mis-procurement issue, estimated at Rs172 billion, remains unresolved, with the ADB’s concurrence still pending. The NHA assured the committee that necessary clarifications would be sought and incorporated without delay.

The committee directed that all correspondence with the ADB, including letters issued by the Prime Minister’s Office, be shared and that responsible officials be held accountable. It further emphasized that land acquisition delays, cost escalations, and other issues under Tranche-III must be resolved to ensure completion by June 2026.

Transparency in Public Procurement and Sindh Projects

The Public Procurement Regulatory Authority (PPRA) briefed the committee on the rollout of the e-Pak Acquisition and Disposal System (EPADS), highlighting progress in Punjab. Senator Abro instructed that Balochistan must also adopt the system, stressing that loan funds belong to the people and must be spent responsibly.

Concerns were raised over the Sindh Public Procurement Regulatory Authority’s (SPPRA) decision to extend manual tendering for the Irrigation and Works and Services Departments until October 21, 2025, despite previous deadlines. Projects worth Rs30 billion were reportedly tendered just before the deadline. The chairman termed the situation alarming and suggested that PPRA obtain SPPRA records and refer the matter to the FIA for investigation. Senator Kamil Agha proposed legislation to make EPADS mandatory for all departments nationwide.

Sindh Solar Energy and Road Sector Projects Examined

The committee also scrutinized the World Bank-funded Sindh Solar Energy Project (SSEP) and ADB-financed Sindh Road Sector Projects. Discrepancies were found in the data of 200,000 household beneficiaries, including duplicate entries and incomplete validation. Departments were instructed to submit verified beneficiary lists within ten days and clarify the additional 400,000 beneficiaries reported by BISP.

Lawmakers further demanded full disclosure of NGO contracts, payments, service charges, and the tax status of imported and local solar equipment, directing EAD to coordinate with the FBR.

Regarding road projects, the committee observed that although the loan was approved for 400 km, nearly 724 km of road work had been undertaken, far exceeding the approved scope. Concerns were raised over identical bidding patterns across 17 contract packages, suggesting possible collusion. Departments were directed to provide bidder records, prequalification criteria, and turnover histories, and to allow EAD observers in future bidding processes to ensure transparency.

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