ISLAMABAD: The Economic Affairs Division (EAD) has admitted that no transparent mechanism currently exists to track or verify the utilisation of loans obtained from the International Monetary Fund (IMF) — whether they are used for budgetary support or for maintaining the balance of payments.
The disclosure came during a meeting of the Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, which reviewed the status of IMF financing, including disbursements, repayments, interest payments, and debt management practices.
The committee expressed concern over the absence of a clear audit trail or transparent accounting system to determine how IMF funds are applied. The chairman noted that despite repeated political commitments to reduce reliance on IMF programmes, successive governments have failed to maintain transparent records of repayment and interest obligations.
Senator Hidayatullah Khan questioned whether the IMF’s balance-of-payments assistance or grant components had been effectively utilised for structural reforms, while Senator Syed Waqar Mehdi sought clarity on whether utilisation targets were being met. Officials admitted that while targets exist, data transparency and verification remain weak.
Responding to queries, EAD officials informed the committee that budgetary support funds were received in 2010, 2019, and 2020, but the Finance Division representative was unable to provide satisfactory details regarding the Extended Fund Facility (EFF) amounting to SDR 3.334 billion.
As of June 30, 2025, Pakistan’s total external debt stood at approximately USD 126 billion, comprising USD 82.5 billion in external public debt and USD 43.5 billion in government-guaranteed liabilities. The committee directed the EAD to furnish a comprehensive, year-wise breakdown of IMF liabilities and external debt since 2008, detailing project allocations, creditor categories, and years of contracting.
Senator Hidayatullah Khan called for complete data for the years 2008, 2013, 2018, 2022, and 2024, stressing that accurate figures were vital for parliamentary oversight. Chairman Abro endorsed the proposal, urging the EAD to ensure full disclosure in the next session.
The committee also expressed disappointment over the absence of Minister for Economic Affairs Ahad Cheema, stressing that his participation was necessary for informed discussions and policy coordination.
Concerns over Misuse of Funds for Multan’s Heritage Project
The Senate panel also discussed the release and utilisation of funds for the renovation of Multan’s historic core, a project with an approved cost of Rs 850 million divided into two phases. The chairman voiced serious concern over the unspent Rs 679 million, which had reportedly been diverted to other projects without proper approval or reporting.
Officials informed the committee that Rs 170 million had been spent on feasibility studies and that administrative control of the project had been transferred from the federal to the provincial government. The committee emphasized that any reallocation of funds must follow transparent, well-documented procedures.
PPRA Rules Violated in Power Distribution Project
The committee also reviewed progress on the Asian Development Bank-funded Power Distribution Strengthening Project, particularly the procurement of STG goods through LESCO, under a USD 80 million loan. The chairman expressed concern over irregularities in the procurement process.
After a briefing by the Public Procurement Regulatory Authority (PPRA), it was observed that LESCO had violated PPRA rules, declaring several lowest bidders as non-responsive without justification. The Joint Secretary (Power Division) acknowledged these irregularities. The committee noted inconsistencies where a bidder declared responsive in one lot was deemed non-responsive in another.
Poor Infrastructure in Chitral
Separately, Senator Falak Naz highlighted the poor condition of access roads in Chitral, affecting local communities and tourism. The National Highway Authority (NHA) informed the committee that 85% of rehabilitation work had been completed, with the remainder expected to finish by November 2025.
The chairman announced that the committee’s next meeting will be held in Chitral to review on-site progress, with provincial representatives and NHA officials directed to attend for direct coordination and resolution of pending issues.
 has admitted that no transparent mechanism currently exists to track or verify the utilisation of loans obtained from the International Monetary Fund (IMF) — whether they are used for budgetary support or for maintaining the balance of payments.){kind=link}