In the first quarter of the fiscal year 2024-25 (July-September), Pakistan has secured $1.3 billion in foreign loans from multilateral and bilateral creditors, excluding a $1 billion tranche from the IMF. This marks a challenging start for the country as it aims to secure a total of $19.4 billion in foreign loans for the fiscal year.
Breakdown of Foreign Loans:
- Multilateral Creditors: $492.96 million
- Major contributors include the World Bank, Asian Development Bank (ADB), Islamic Development Bank (IsDB), and Asian Infrastructure Investment Bank (AIIB).
- Bilateral Creditors: $250.29 million
- Commercial Financing: Pakistan has resumed commercial financing, securing $200 million during this period.
- Naya Pakistan Certificate: The initiative brought in $374 million in the first three months.
IMF Involvement
The IMF has already disbursed $1 billion under the $7 billion Extended Fund Facility, which, when included, raises the total foreign loans for the quarter to $2.3 billion. This IMF support is crucial, as it is reflected in the balance of payments support documented in the State Bank of Pakistan’s records.
Despite a $1 billion projection for international bond issuance this fiscal year, Pakistan has not launched any bonds yet, highlighting the ongoing financial challenges the country faces.
