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Pakistan Secures $5.5 Billion in Foreign Loans Over Nine Months, Trails Last Year’s Inflows

Pakistan received $5.507 billion in external financial assistance during the first nine months of the current fiscal year—$1.39 billion less than the amount received during the same period last year, according to data released by the Economic Affairs Division.

The disbursements between July and March include $5.37 billion in loans and $135.6 million in grants. However, this figure excludes the $1 billion tranche from the International Monetary Fund (IMF), which is accounted for separately.

The amount received so far represents only 28.4% of Pakistan’s full-year external borrowing target of $19.39 billion, highlighting a slower pace of inflows amid ongoing economic challenges.

In comparison, during the same nine-month period in the previous fiscal year, Pakistan had secured $6.89 billion in foreign financial support.

Multilateral development partners remained the primary source of assistance. The Asian Development Bank (ADB) contributed $1.18 billion, while the World Bank disbursed $720 million. Combined, global financial institutions provided a total of $2.83 billion.

Bilateral support also played a critical role, particularly in the form of loan rollovers:

  • Saudi Arabia: Rolled over $3 billion
  • United Arab Emirates (UAE): Rolled over $2 billion
  • China: Rolled over a $1 billion loan

In terms of fresh bilateral assistance, notable contributions came from:

  • France: $108 million
  • China: $99.1 million
  • United States: $40 million
  • Japan: $28.8 million
  • Kuwait: $24.4 million

The slower inflow of external financing underscores the need for Pakistan to expedite its loan disbursement pipeline as it continues to navigate fiscal pressures and seeks to stabilize its foreign exchange reserves.

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