ISLAMABAD (HRNW) – The federal government secured $11 billion in external loans during the first 10 months (July to April) of the current fiscal year 2025–26. According to official data released by the Economic Affairs Division, this represents a staggering 83% increase compared to the same period last fiscal year, when external borrowing stood at $6 billion.
The report notes that the total budget estimate for external financial assistance for the entire fiscal year is projected at $19.39 billion. Out of this, $4.5 billion was received in April alone, with the government expected to secure additional inflows through May and June.
Key highlights from the Economic Affairs Division report include:
External Inflows and Grants Breakdown
-
Net Increase: External borrowing increased by $5 billion compared to the previous fiscal year. Additionally, Pakistan received $120 million in grant assistance between July and April.
-
Rupee Equivalent: In local currency, the government has received Rs. 3,103 billion so far this fiscal year. The total projected external borrowing for the entire fiscal year is estimated at Rs. 5,720 billion.
-
IMF Funding Excluded: The $2.5 billion received from the International Monetary Fund (IMF) is over and above the reported $11 billion figure.
-
Aid Classification: Non-project aid during the 10-month period amounted to $8.31 billion (including over Rs. 4,586 billion for budgetary support), while project aid stood at $2.756 billion.
Assistance from Global Institutions and Bilateral Partners
-
Saudi Arabia & China: Saudi Arabia provided a $1 billion oil facility on deferred payments. The government estimates a total of $9 billion in safe deposits will be rolled over this fiscal year ($5 billion from Saudi Arabia and $4 billion from China), out of which $3 billion from Saudi Arabia has already been rolled over.
-
Multilateral Lenders: Pakistan secured $1.924 billion from the Asian Development Bank (ADB), $1.663 billion from the World Bank Group, and $480 million from the Islamic Development Bank (IsDB) out of an annual projected $860 million.
-
Repayments: During the month of April, Pakistan successfully repaid a loan of $3 billion to the United Arab Emirates (UAE).
Monthly Borrowing Trends (in PKR)
The report indicates that the highest monthly external borrowing was recorded in April, totaling Rs. 1,246 billion. The month-wise breakdown for the preceding period is as follows:
-
July: Rs. 198 billion | August: Rs. 192 billion | September: Rs. 124 billion
-
October: Rs. 133 billion | November: Rs. 144 billion | December: Rs. 413 billion
-
January: Rs. 175 billion | February: Rs. 193 billion | March: Rs. 204 billion
According to the official documents, the government aims to secure a total of $6.40 billion under bilateral and multilateral agreements for project financing by the close of the current fiscal year.
Stand Up for Human Rights – Support Our Cause!
Help HRNW, the world’s No. 1 human rights portal. Click on the link below to support our mission in raising a voice for the oppressed and promoting human rights globally:
