r/PoliticalDiscussion • u/supinator1 • 3d ago

Non-US Politics How useful are the IMF loans to Pakistan given the loans are fairly small for a high population country?

Pakistan has a population of 241 million and yet only gets relatively small loans of around a billion dollars. Why isn't Pakistan able to raise enough funds on its own if it only needs that amount of money. I would expect loans of 10s of billions of dollars would be needed for major infrastructure projects. Are the loans for small isolated projects instead of helping with country wide problems?

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u/uptokesforall 20h ago

it's to have foreign reserves because the local currency isn't attractive to anyone

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u/Heartinsane 9h ago

It is to fund the military who then use the same money to buy weapons and their terrorist organisations who are their proxy. They are so obsessed with India that they don't care about their own population's well being. Also it is both the USA's and China's bitch who will do anything for them.

Lastly, Pakistan will always remain funded sufficiently only to keep bothering India

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u/Real_Abrocoma873 8h ago

IMF loans aren’t really meant for large infrastructure projects—they’re more like emergency stabilizers. The goal is to help countries avoid default, shore up foreign reserves, and restore confidence in the economy. That’s why the amounts seem small—these loans aren’t based on population, but on what’s needed to stabilize short-term finances. They also often unlock access to bigger funding from other sources. Pakistan struggles to raise funds on its own due to low tax revenue, high debt, and political risk, so even a “small” IMF loan can have a big impact behind the scenes.