Pakistan secured $16.2 billion in external financing during the fiscal year ending June 30, 2026. However, the country still fell short of its annual financing target despite receiving substantial support from multilateral lenders, bilateral partners, commercial banks, and international financial institutions.
The government had targeted $19.92 billion in foreign loans and grants for FY2025-26. As a result, it missed the goal by $3.72 billion.
China Refinancing Boosts External Financing
A major contribution came from China, which refinanced a commercial loan worth $1.7 billion through the China Development Bank (CDB).
In addition, Pakistan secured $203.33 million from Standard Chartered Bank London. Consequently, total foreign commercial borrowing reached $1.903 billion during the fiscal year.
Although the government had projected $3 billion in commercial loans, it remained $1.1 billion below that target.
China also provided a guarantee worth $392 million during FY2025-26, further supporting Pakistan’s external financing efforts.
Multilateral Lenders Provide Significant Support
Multilateral financial institutions remained the largest source of external financing throughout the fiscal year.
The Asian Development Bank (ADB) emerged as the leading lender. It disbursed $953.74 million during June 2026 alone. Overall, ADB released loans worth $1.772 billion during the fiscal year.
Other multilateral disbursements included:
- World Bank (IDA): $1.5 billion
- World Bank (IBRD): $516 million
- Islamic Development Bank (Short-Term): $1.01 billion
- Asian Infrastructure Investment Bank (AIIB): $123.85 million
- Islamic Development Bank: $68.13 million
- International Fund for Agricultural Development (IFAD): $25.5 million
- OPEC Fund: $0.11 million
- United Nations: $0.9 million
Together, multilateral institutions provided approximately $5.03 billion during the fiscal year.
Meanwhile, total financing received from multilateral and bilateral creditors reached $6.39 billion.
Bilateral Partners Continue Financial Assistance
Pakistan also received financial support from several bilateral partners.
Saudi Arabia remained the largest bilateral contributor, providing $1.01 billion. Most of this support came through the Saudi Oil Facility (SOF), which supplied deferred oil payments of $100 million per month until March 2026.
Pakistan has also requested the continuation of the oil facility for the medium term. However, officials said the request is still under consideration.
Other bilateral contributions included:
- China: $108 million
- Denmark: $90 million
- France: $71.68 million
- Germany: $13.35 million
- Japan: $26.69 million
- South Korea: $9.49 million
- Kuwait: $26.06 million
- United States: $0.64 million
Overall, bilateral partners disbursed $1.355 billion during FY2025-26.
Pakistan Returns to International Capital Markets
Pakistan also re-entered international debt markets after several years.
The government successfully launched two international bonds worth $1 billion. These included a $750 million Eurobond and a $250 million Panda Bond.
Furthermore, overseas Pakistanis continued investing through the Naya Pakistan Certificates (NPC) programme.
The country attracted total investments of $3.049 billion through NPCs. Conventional certificates contributed $930.8 million, while Islamic Naya Pakistan Certificates generated $2.118 billion.
IMF and Saudi Arabia Extend Financial Support
The International Monetary Fund (IMF) disbursed $420 million under the Resilience and Sustainability Facility (RSF), which supports climate-related financing.
Officials clarified that IMF disbursements under the Extended Fund Facility (EFF) are deposited directly with the State Bank of Pakistan rather than the federal government’s accounts.
Meanwhile, Saudi Arabia also placed a $3 billion time deposit with Pakistan, providing additional support for the country’s external financial position.
Government Explains External Financing Figures
Finance Ministry Adviser Khurram Shahzad explained that the reported $15.764 billion represents the net inflow of foreign economic assistance received directly by Pakistan’s central government during FY2025-26.
According to him, the figure combines $149.53 million in grants with $15.615 billion in loans and financing instruments.
The financing package included institutional multilateral loans, Naya Pakistan Certificates, foreign commercial borrowing, international sovereign bonds, IMF financing, bilateral loans, and the Saudi time deposit.
Financing Target Still Remains Unmet
Although Pakistan secured substantial financial inflows from multiple international sources, the government remained below its external financing target for FY2025-26.
Nevertheless, continued support from multilateral lenders, bilateral partners, commercial financing, and international investors helped strengthen the country’s external financing position during the fiscal year.
