Pakistan Received $471.2 Million Foreign Loans in October 2025

Pakistan received $471.2 million in external financing in October 2025, up 7.9 percent from September and 13.6 percent higher than the same month last year, according to data from the Economic Affairs Division. This pushed total external inflows for July to October FY26 to just $2.29 billion, equal to only 11.5 percent of the government’s $19.92 billion annual target. Non-project support continued to dominate. Out of the $2.29 billion received, $1.52 billion or 66 percent went to non-project aid, mainly budgetary support. Only $773 million or 34 percent was directed to development projects. Saudi Arabia remained Pakistan’s largest bilateral source. The Saudi Fund for Development’s oil facility contributed $400 million by October, the single biggest inflow. Including other support, Saudi Arabia’s total reached $404.2 million. The Islamic Development Bank supplied $361.43 million in short-term financing. Naya Pakistan Certificates contributed $734.71 million, equal to 32 percent of total inflows. Multilateral lenders disbursed $1.11 billion, or 48.3 percent of the total. This included $347.5 million from the World Bank group, $167.4 million from the Asian Development Bank, and $411.6 million from the Islamic Development Bank, including short-term facilities. Bilateral partners contributed $449.9 million, but China’s disbursements stood at only $9.75 million. Pakistan’s external buffers continue to rely on rollover deposits rather than new liquidity. Saudi Arabia’s $5 billion time deposit and China’s $4 billion SAFE deposit remain unchanged and do not count as fresh inflows. No commercial borrowing has materialised so far this fiscal year. Although the government budgeted $3.1 billion from foreign commercial banks, not a single dollar has been disbursed through October. Project inflows remain slow. The Dasu Hydropower Project received $13.16 million from July to October, while Karachi’s Yellow Line project received $55.89 million.