Pakistan foreign borrowing rises to nearly $11bn

Pakistan secured nearly $11 billion in external loans and financing during July-April FY2025-26, up 83% from a year earlier, according to EAD data. April alone brought in $4.5 billion, while total grants during the period stood at $120 million.

ISLAMABAD: Pakistan obtained nearly $11 billion in external loans and financing during the first 10 months of fiscal year 2025-26, an 83% increase from the same period a year earlier, according to official data released by the Economic Affairs Division (EAD).

The EAD figures showed the federal government secured $11 billion between July 2025 and April 2026, compared with nearly $6 billion in the corresponding period of the previous fiscal year. The government has projected total external financing of $19.39 billion for the current fiscal year, with further borrowing expected in May and June.

According to the official data, Pakistan received $4.5 billion in April alone, indicating a sharp increase in external inflows. In the same month of the last fiscal year, total external assistance stood at $570 million, meaning borrowing in April 2026 was about seven times higher year-on-year.

The data also showed that the government received grants worth $120 million during the July-April period. In rupee terms, total external financing secured so far in the current fiscal year amounted to Rs3.103 trillion.

Breakdown of inflows

Of the total borrowing during the 10-month period, non-project aid amounted to $8.31 billion, while project financing stood at $2.756 billion, according to the EAD. Within non-project assistance, budgetary support accounted for $4.586 billion.

Saudi Arabia provided a $1 billion oil facility to Pakistan on deferred payment terms, while the Islamic Development Bank extended loans worth $480 million. The official figures further showed that grants worth $21.8 million were received in April.

The EAD data indicated that Pakistan secured nearly $5 billion more in loans than in the same period last year. The figures released by the division do not include financing received separately from the International Monetary Fund, which exceeded $2.5 billion.

The latest borrowing data comes as the government continues to rely on external financing to meet its fiscal requirements during the current financial year. Based on the official target of $19.39 billion, additional inflows are expected in the final two months of the fiscal year.