Pakistan Received $695 Million in Foreign Loans in July, Up 59% from Last Year

Pakistan obtained $695 million in foreign loans during July 2025, the first month of the current fiscal year, marking a nearly 59 percent increase compared to the same period last year, official data shows. According to figures released by the Economic Affairs Division (EAD) on Monday, Islamabad secured $694.53 million in external financing against annual projections of $19.7 billion in foreign loans and grants for FY26. In July 2024, the country received $436.4 million. The World Bank emerged as the largest lender in July, disbursing $157.69 million under its International Development Association (IDA) window and another $52.56 million through the International Bank for Reconstruction and Development (IBRD). Pakistan also received $100 million from Saudi Arabia under the $1 billion Saudi Oil Facility (SOF). Officials expect the facility to continue through the first ten months of the fiscal year. Overall, bilateral inflows amounted to $118.4 million in July against annual projections of $1.277 billion. Disbursements included $6 million from China, $8.5 million from France, $2.02 million from Germany, $0.81 million from Japan, $0.6 million from Korea, and $0.19 million from the United States. Total disbursements from multilateral lenders reached $379.88 million. These included $156.24 million from the World Bank’s IDA window, $131.20 million from the Islamic Development Bank, $42.91 million from IBRD, and $33.22 million from the Asian Development Bank. In addition, inflows under the Naya Pakistan Certificates stood at $196.22 million in July against a full-year projection of $609 million. The government expects $410 million from the International Monetary Fund (IMF) during FY26 under the Resilience and Sustainability Facility (RSF), part of a $1.4 billion package spread over 28 months for climate finance. These inflows are recorded in the accounts of the EAD and the Ministry of Finance.