Where Does the IMF Get Its Billions From? Explained

The International Monetary Fund (IMF) is like a global emergency bank. When countries face serious financial problems—like a sudden economic crash or rising debt—the IMF steps in to help. But where does it get the money to lend? In 2025, it has nearly $1 trillion in financial firepower. Here's how it works, in simple terms.

1. Member Contributions (Quotas)
Every country that is part of the IMF pays money to be a member. This payment is called a quota. Think of it like paying a membership fee based on the size of your economy.
In December 2023, countries agreed to increase these payments by 50%.

Total quotas rose from around SDR 477 billion to SDR 715.7 billion.

As of May 2025, countries are finishing the paperwork to make this increase official.

The deadline to complete this was extended to May 15, 2025 to give countries more time to get approval at home.

2. Backup Funds (NAB)
Sometimes, quotas alone aren’t enough—especially during big global crises. That’s where New Arrangements to Borrow (NAB) come in.

NAB is a kind of emergency backup fund that major countries can lend to.

In 2025, this backup pool is worth about SDR 364 billion.

Now that quotas are being increased, the IMF plans to rely less on this borrowed money.

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3. Temporary Borrowings (BBAs)
Another source of cash is Bilateral Borrowing Agreements (BBAs). These are short-term deals with rich countries that let the IMF borrow more money if needed.
First set up in 2020, they were meant to be temporary.

In early 2025, there was a small dip in available funds as countries updated these agreements.

They're now being extended retroactively from January 1, 2025.

4. Special Help for Poor Countries (Trust Funds)

The IMF also manages trust funds to help the world’s poorest and most vulnerable countries:
Poverty Reduction and Growth Trust (PRGT): Focused on helping low-income countries. It has SDR 42.4 billion in unused funds and can lend about SDR 2.7 billion a year.
Resilience and Sustainability Trust (RST): Supports countries tackling big long-term problems like climate change and healthcare.
These funds come from donations and investments by richer countries.
 

5. How the IMF Makes Money
The IMF doesn’t just lend—it also earns.

It charges fees and interest on the loans it gives.

It invests its own money in safe financial products.

This income keeps the IMF running and helps it offer cheaper loans to poor countries.

Total Lending Power in 2025: Close to $1 Trillion
By combining quotas, borrowed funds, and trust fund resources, the IMF has nearly $1 trillion at its disposal. This means it can move fast when countries need help—whether it's a currency crash, a financial shock, or a climate emergency.
 

IMF Loan To Pakistan

The Executive Board of the International Monetary Fund (IMF) on May 9, 2025, approved an immediate disbursement of $1 billion (around Rs 8,500 crore) to Pakistan, bringing total disbursements under the current Extended Fund Facility (EFF) to $2.1 billion.

This development comes even as India raised strong objections to the IMF’s continued financial support to Pakistan, accusing the country of economic mismanagement and potential misuse of funds for terror-related activities.

What’s the Deal? Breakdown of IMF’s EFF to Pakistan
The latest aid is part of a 37-month EFF approved on September 25, 2024, which allows Pakistan to access a total of $7 billion. Alongside this, the IMF Executive Board also greenlit a new arrangement under the Resilience and Sustainability Facility (RSF), giving Pakistan access to an additional $1.4 billion.

The IMF’s backing of Pakistan, however, continues to draw criticism, particularly from India.

India Slams IMF for Bailing Out Pakistan Yet Again
India responded sharply to the new disbursal. Referring to Pakistan as a serial defaulter, Indian authorities questioned the IMF’s rationale for continuing to support a country that has repeatedly failed to meet loan conditions.

New Delhi’s concerns extend beyond economics. It cited “the potential misuse of fungible IMF loans by Pakistan for military aggression and state-sponsored terrorism.”