Pakistan received more than $16 billion in Pakistan external financing during the last fiscal year, according to official documents, helping the country meet most of its external funding needs despite falling short of its annual borrowing target. The financing came from bilateral partners, multilateral institutions, commercial banks and investment programmes.
The documents show Pakistan secured external financing worth more than $16 billion, equivalent to around Rs4.517 trillion. However, the country remained $3.072 billion below its annual external borrowing target of $19.92 billion, highlighting continued financing challenges.
Saudi Arabia emerged as Pakistan’s largest bilateral financial partner during the fiscal year. The Kingdom provided $3 billion in fresh deposits to strengthen Pakistan’s foreign exchange reserves, along with a $1 billion loan and $1 billion in oil financing to support the country’s external financing requirements.
Multilateral lenders also played a key role in Pakistan external financing. International financial institutions collectively extended more than $5 billion in loans, including $1.77 billion from the Asian Development Bank (ADB) and more than $1.5 billion from the World Bank.
Pakistan also received financial support from other friendly countries, including China. Official records show bilateral partners contributed $1.35 billion in loans, while a Chinese bank refinanced a $1.70 billion loan to help manage Pakistan’s external debt obligations. In addition, the government secured $1.90 billion in commercial borrowing from international banks, including $200 million from a British bank.
The government further mobilized more than $3 billion through Naya Pakistan Certificates, while the Economic Affairs Division confirmed receiving $420 million from the International Monetary Fund (IMF), alongside disbursements under the IMF’s $7 billion loan programme. Pakistan also received $3.43 billion in project loans, $12.72 billion in non-project financing and $149.5 million in grants.
Despite missing its annual target, the latest figures underline Pakistan’s continued dependence on Pakistan external financing to strengthen foreign exchange reserves, support development spending and meet fiscal as well as external payment obligations.
