How Pakistan is affected by Greece default

Pakistan will have to share a slice of the burden in the case of a 'permanent default' of Greece — a possibility though not entirely unlikely. A permanent default by Greece would in-principle lead to a higher interest payments for all others who have borrowed from the IMF — many countries much poorer than Greece, said a Barclays' note.

According to IMF's policy, in order to recover the default amount, it can levy an additional charge — or 'adjusted rate of charge' — on countries who have borrowed from the multilateral agency. Not just Pakistan, it would mean extra outgo for Portugal, Ukraine and Ireland, which constitutes about 50 per cent of IMF's outstanding credit.


As on June 2015, IMF gave loans worth $3.9 billion to Pakistan, which is nearly 4 per cent of the total credit outstanding. The credit outstanding of the IMF at end of June 2015 stands at $91 billion. Pakistan's per capita GDP stands at $1300, against Greece's $20,000.

A default would also mean that countries which contribute to the IMF kitty receive lower interest from the agency.