Pakistan Secures $12.4 Billion in Foreign Loans in FY2025, Up by $2.6 Billion
Pakistan received $12.4 billion in foreign loans during the financial year 2025, reflecting a $2.6 billion increase compared to $9.8 billion disbursed in FY2024, according to official data released this week.
The total excludes $2.1 billion in IMF disbursements and does not account for $9 billion in rollover deposits from Saudi Arabia and China under Time Deposit and SAFE arrangements, which are not classified as new inflows.
Key Sources of Foreign Financing
The rise in foreign funding was fueled by:
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Higher disbursements from multilateral lenders, including the Asian Development Bank (ADB)
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Increased foreign commercial borrowing
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Renewed inflows under the Saudi Oil Facility (SOF)
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Growing investments in Naya Pakistan Certificates (NPCs)
Breakdown of Major Inflows
✅ Multilateral Lenders:
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Total Disbursed: $4.838 billion (vs. $4.577 billion target)
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Asian Development Bank (ADB): $2.13 billion (target: $1.65 billion)
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Asian Infrastructure Investment Bank (AIIB): $110.37 million
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World Bank – IDA: $1.37 billion
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World Bank – IBRD: $392 million
✅ Bilateral Assistance:
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Total Bilateral Inflows: $600 million
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Saudi Arabia: $221.27 million
✅ Commercial Borrowing:
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Total: $4.297 billion (vs. $3.779 billion target)
✅ Naya Pakistan Certificates:
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Total Raised: $1.9 billion
✅ China – Guaranteed Loans:
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Disbursed: $483 million
Missed Targets
While most sources exceeded expectations, disbursements from the World Bank’s lending arms fell short of projections, particularly from the IBRD.
Looking Ahead
The increased inflows in FY2025 reflect Pakistan’s strategy of diversifying its external financing through a mix of commercial, bilateral, and multilateral sources. The data also highlights the government’s focus on leveraging programs like NPCs and SOF to meet foreign exchange needs amid a challenging economic environment.
Conclusion:
With continued fiscal and structural reforms, Pakistan’s access to foreign lending remains strong, though future borrowing will likely depend on sustained macroeconomic stability, IMF engagement, and global market conditions.
