ISLAMABAD: In the first ten months of the current fiscal year (2024-25), Pakistan secured $16.08 billion in external loans and grants, against an annual target of $19.2 billion by June 30.
About half of this total came from the rollover of existing loans from China, Saudi Arabia, and the United Arab Emirates. Fresh loan and grant inflows during July-April amounted to $6.086 billion, which is nearly 15% lower than the amount received in the same period of the previous year.
According to the Economic Affairs Division’s (EAD) monthly report on Foreign Economic Assistance (FEA), Pakistan had aimed for $19.4 billion in FEA this fiscal year. However, in July-April, it received $6.086 billion compared to $7.142 billion during the same period last year, when the target was $17.6 billion.
These figures do not include the $1 billion disbursed by the IMF in October under the $7 billion Extended Fund Facility (EFF), which is recorded separately by the State Bank of Pakistan (SBP). Nor does it include another $1 billion disbursed by the IMF last week.
Including rollovers and fresh disbursements, the total external assistance reached $16.08 billion in 10MFY25. This consisted of $3 billion rolled over by Saudi Arabia, $2 billion by the UAE, and $3 billion by China. Pakistan’s total annual rollover portfolio with these three countries is about $12.7 billion in safe deposits and loans, keeping its net international reserves (NIR) at approximately $3.3 billion.
EAD’s data showed that inflows dropped about 15% to $6.086 billion in July-April, mainly due to the delayed IMF bailout and subsequent disbursements. In the same period last year, including IMF disbursements, inflows totaled $8.2 billion.
In April alone, inflows were reported at $576 million, compared to $555 million in March, $237 million in February, and $830 million in January.
Of the total $6.086 billion, about $3.45 billion was allocated for budgetary support or programme loans, while $2.6 billion was designated for project financing. During the same period last year, $2.3 billion went to project aid and $4.8 billion to programme loans.
Multilateral inflows reached $2.98 billion in 10MFY25, up from $2.86 billion the previous year. Bilateral disbursements fell sharply to $372 million, down 58% from $878 million last year.
The EAD also reported receiving about $706 million in loans from UAE-based commercial lenders, reflecting a slight recovery from commercial banks that had been reluctant to finance Pakistan previously. The government had budgeted $3.8 billion in commercial bank financing for this year, but the actual outcome has been poor due to the delayed IMF programme and ongoing economic challenges.
The government also aimed to raise $1 billion through international bonds this year. In addition, $9 billion in inflows from China and Saudi Arabia were projected for FY25, including a $5 billion time deposit from Saudi Arabia and $4 billion from China’s SAFE deposit. These funds are critical to bridging Pakistan’s external financing gap under the IMF programme.
Furthermore, overseas Pakistanis contributed $1.61 billion through Naya Pakistan Certificates, up from $886 million in the same period last year. The Asian Development Bank (ADB) disbursed $1.253 billion during 10MFY25, up from $708 million a year earlier, while the World Bank provided $1.07 billion.
