WION DataLabs: Pakistan got $22 billion from the IMF in 25 years, but spent $185 billion on its military

The International Monetary Fund (IMF) has recently approved a fresh $2.3 billion package for Pakistan. Out of this, $1 billion will be given immediately under the Extended Fund Facility (EFF), and $1.3 billion will come through a new Resilience and Sustainability Facility (RSF).

India chose not to vote on the package, pointing to Pakistan’s continued support for cross-border terrorism.

This development highlights a recurring pattern: Each time Pakistan knocks on the doors of the International Monetary Fund, it arrives with the same pitch: economic distress, low foreign exchange reserves, and inability to meet its external obligations. Each time, the IMF responds with a package, structured, conditional, but ultimately forgiving.

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But one thing remains consistent: Pakistan’s military budget stays high, regardless of the economic condition or foreign aid it receives.

Military budgets remain high even during bailouts

From 1999 to 2023, Pakistan received more than $22 billion in IMF disbursements. These funds were aimed at stabilising the country’s struggling economy and addressing balance-of-payments issues.

Yet in that same period, Pakistan spent over $180 billion on its military, often five to ten times more than the IMF money it got each year.

For instance, in 1999, Pakistan received about $611 million from the IMF, while spending $3.08 billion on defence. The pattern continued year after year, more aid came in, and more was spent on the military.

Military Spending By Pakistan

Military spending through the years

Here's a comparison of some key years showing IMF bailouts versus Pakistan’s military spending:

2008 (Global Financial Crisis)

IMF aid: $3.1 billion

Military spending: $5.23 billion

2013–2014 (Debt and Energy Crisis)

IMF aid: $2.18 billion

Military spending: $8.68 billion

2019 (Balance of Payments Crisis)

IMF aid: $1.37 billion

Military spending: $10.4 billion

2022 (Pandemic and inflation)

IMF aid: $2.18 billion

Military spending: $10.34 billion

Even as the IMF sent money to help stabilise the economy, defence budgets remained unaffected. Fuel subsidies were slashed, taxes were increased, and inflation hit record highs, but the military continued to get its share.

In 2023, defence spending was nearly 7 times the IMF aid

In 2023, Pakistan faced a risk of default, and inflation soared above 30%. The IMF disbursed $1.2 billion. But during that same year, Pakistan’s military budget stood at $8.52 billion, nearly seven times the aid.

In 2021, the IMF asked Pakistan to raise taxes and cut energy subsidies. Instead, the country raised its defence budget to $11.84 billion, its highest in recent memory.

IMF programmes typically come with strict conditions: Raise taxes, reduce subsidies, and cut government spending.

But Pakistan’s military budget has remained largely outside these conditions.

A 25-year pattern with no reforms

What’s clear is that this isn’t a one-off case. Over the last 25 years, Pakistan has followed a consistent pattern:

IMF loans increase → Military spending increases faster

Economic crises worsen → Military budgets remain untouched

Austerity hits civilians → Defence remains protected

Pakistan’s economic challenges are routinely treated as external issues of bad debt, weak exports, etc. But they are deeply political. The military’s dominance of national resources takes precedence over civilian priorities like education, healthcare, and development.

The numbers show this isn’t just a question of prioritisation but it's how Pakistan governs.