Pakistan has successfully secured $1.72 billion in foreign loans from multilateral and bilateral creditors during the first four months (July-October) of the current fiscal year, despite the lack of international bond issuances or deposit rollovers. This indicates a continued flow of financial support to the government amid economic challenges.
Total Foreign Loans Reach $2.72 Billion, Including IMF Disbursement
When including a $1 billion tranche disbursed by the International Monetary Fund (IMF) under the $7 billion Extended Fund Facility (EFF), the total foreign loans for the period amount to $2.72 billion. However, it is important to note that the IMF loan is not reflected in the Economic Affairs Division’s (EAD) data, as it supports Pakistan’s balance of payments (BoP) and is recorded on the State Bank of Pakistan’s balance sheet.
In comparison, Pakistan had received $4.25 billion in foreign loans during the same period in the previous fiscal year (2023–24), showing a decrease in the volume of loans during the current fiscal year.
Foreign Loan Projections for Fiscal Year 2024–25
For the current fiscal year, Islamabad has projected $19.39 billion in foreign loans from multilateral and bilateral creditors. This target includes $9 billion in foreign deposits—$5 billion from Saudi Arabia and $4 billion from China—along with an additional $1 billion from an international bond issuance. These funds are critical for supporting Pakistan’s foreign exchange reserves and stabilizing its external account.
Breakdown of Foreign Loan Disbursements (July-October 2024)
Bilateral Creditors:
- During the first four months of the fiscal year, Pakistan received a total of $259 million from bilateral creditors. Notable contributions include:
- China: $97.58 million
- France: $89.64 million
- Germany: $11.29 million
- Japan: $9.71 million
- Korea: $7.59 million
- Saudi Arabia: $6.35 million
- United States: $37.32 million
Multilateral Creditors:
- Multilateral creditors disbursed a total of $721 million during the same period. Key contributions came from:
- Asian Development Bank (ADB): $173.05 million
- Asian Infrastructure Investment Bank (AIIB): $17.41 million
- World Bank (WB): $266.64 million (under IDA concessional loans) and $97.19 million (under IBRD)
- Islamic Development Bank (IsDB): $100 million (short-term loan) and $50.41 million
- International Fund for Agricultural Development (IFAD): $15.56 million
- OPEC Fund: $0.75 million
Other Sources of Financing
In addition to loans from bilateral and multilateral creditors, the government secured $200 million through commercial loans and $547 million through Naya Pakistan Certificates during the first four months of the current fiscal year.
These inflows have been crucial in helping Pakistan navigate its balance of payments challenges and meet external financing needs, despite the absence of large bond issuances or deposits rollovers so far.
