ISLAMABAD: The government secured $1.72 billion in foreign loans from multilateral and bilateral lenders during the first four months of the current fiscal year (July-October), despite the absence of international bond issuance or deposit rollovers. are
Including a $1 billion tranche from the International Monetary Fund (IMF) under the $7 billion Extended Fund Facility (EFF), total external borrowings for the period stood at $2.72 billion. However, the Economic Affairs Division (EAD) does not show the IMF loan in its data, as it supports the balance of payments (BoP) and is recorded in the balance sheet of the State Bank of Pakistan. In comparison, Pakistan received foreign loans of $4.25 billion during the same period last fiscal year (2023-24).
For the current fiscal year, Islamabad has estimated $19.39 billion in foreign loans from multilateral and bilateral lenders. This includes $9 billion in foreign reserves – $5 billion from Saudi Arabia and $4 billion from China – as well as $1 billion from international bond issuance.
According to EAD data, Pakistan received $259 million from bilateral lenders during the first four months of the fiscal year. Key donors include China with $97.58 million, France with $89.64 million, Germany with $11.29 million, Japan with $9.71 million, Korea with $7.59 million, Saudi Arabia with $6.35 million and the US with $37.32 million.
Multilateral lenders disbursed $721 million over the same period. Major contributors include Asian Development Bank (ADB) $173.05 million, Asian Infrastructure Investment Bank (AIIB) $17.41 million, World Bank (WB) $266.64 million under IDA (concessional loans) and $97.19 million under IBRD, Islamic Development Bank (ISDB) are included. $100 million (short-term loan) and $50.41 million, IFAD $15.56 million, OPEC Fund $0.75 million.
In addition, the government has secured $200 million through commercial loans and $547 million through Naya Pakistan Certificates during the first four months of the current fiscal year.