Pakistan Received $3.01 Billion Foreign Loans in First 5 Months of FY26

Pakistan received $3.01 billion in external loans in the first five months of the current fiscal year. Data from the Ministry of Economic Affairs show Islamabad received $500 million under a Saudi oil financing facility between July and November of FY2025-26. In rupee terms, total foreign borrowing during the period amounted to Rs. 858 billion, a 15% increase from Rs. 741 billion in the same period last year. Monthly figures indicate that the government borrowed Rs. 198 billion in July, Rs. 192 billion in August, and Rs. 124 billion in September. Borrowing rose again to Rs. 133 billion in October and Rs. 144 billion in November. In dollar terms, external inflows reached $515 million in November, about $40 million more than October’s $475 million. Of the November amount, $314.5 million came through bilateral and multilateral lenders, while $196.9 million was raised via Naya Pakistan Certificates, the overseas investment scheme. Pakistan also received $100 million in October under the Saudi oil facility, which is expected to total $1 billion over the full fiscal year. Half of that amount has already been disbursed. According to the Economic Affairs Division, the government received $54.1 million in grants during the first five months of the year. For FY2025-26, Islamabad has projected external financing of more than $19.92 billion. The financing plan relies heavily on rollovers of existing deposits from allied countries. Pakistan aims to roll over $9 billion from Saudi Arabia and China during the year, $5 billion from Saudi Arabia and $4 billion from China. Of this, $3 billion from Saudi Arabia has already been rolled over. The central bank will manage an additional $3 billion rollover from the United Arab Emirates. The International Monetary Fund projects total external inflows of more than $25 billion for FY2025-26, including $12 billion in rollovers from friendly countries and $2 billion in IMF loan disbursements. Pakistan is also expecting about $400 million through two tranches under the IMF’s Resilience and Sustainability Facility. Project financing will continue to be sourced from multilateral lenders such as the World Bank Group and the Asian Development Bank. The government plans to issue $250 million in Panda Bonds in China in January. According to official estimates, Pakistan expects to secure $1.92 billion from the Asian Development Bank, $1.66 billion from the World Bank Group, and $860 million from the Islamic Development Bank during the fiscal year, including $700 million in short-term financing. The financing plan also includes issuing $400 million in bonds and raising $610 million through Naya Pakistan Certificates. Overall, the government aims to mobilize $6.4 billion in project financing through bilateral and multilateral arrangements in FY2025-26.