Pakistan has obtained $1.38 billion in new foreign loans and grants during the first two months of the ongoing fiscal year 2025-26.
According to the Economic Affairs Division (EAD), the amount is higher than the borrowing in the same period last year. However, it makes up only 6.93 percent of the total target, as the government has planned to secure $19.9 billion in foreign economic assistance during the current financial year.
The report showed that multilateral lenders provided $780.5 million, while bilateral partners disbursed $232.4 million. Pakistan also raised $364.55 million through the Naya Pakistan Certificate in July and August.
From the multilateral side, the Asian Development Bank released $89.5 million, while the International Development Association provided $228.4 million. The International Bank for Reconstruction and Development disbursed $128.5 million, followed by $17.37 million from the Asian Infrastructure Investment Bank and $3 million from IFAD. Pakistan also received $311.43 million from the Islamic Development Bank under short-term financing.
In bilateral assistance, China gave $7.75 million, France $8.5 million, Germany $3.03 million, Japan $5.75 million, Korea $4.21 million, Kuwait $0.3 million, Saudi Arabia’s SFD oil facility $200 million, and the United States $0.25 million.
For the full fiscal year 2025-26, Pakistan’s budget documents projected $19.9 billion in foreign assistance. This includes $1.362 billion from bilateral sources, $5.041 billion from multilateral partners, $3.1 billion from commercial banks, $9 billion through time deposits, $609 million from the Naya Pakistan Certificate, and $410 million from the International Monetary Fund.
The government expects the new foreign loans to provide support for development projects and external financing needs. However, the pace of inflows in the early months suggests more borrowing will be required in the coming quarters.
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