Pakistan Secures $27.2 Billion in External Financing During FY2025-26
Pakistan obtained $27.2 billion in external financing during the fiscal year 2025-26, an amount close to the country’s $30 billion in export earnings, according to official figures released by the Ministry of Economic Affairs.
The data shows that Pakistan received $16 billion in fresh external inflows during the fiscal year. The total financing increased to $27.2 billion after including $2.2 billion from the International Monetary Fund (IMF), $5 billion in Saudi deposit rollovers, and $4 billion in Chinese deposit rollovers.
Majority of Funds Used for Budget and Debt Needs
Official figures indicate that nearly 88% of the external financing, or approximately $24 billion, was utilized for budgetary support, debt repayments, and strengthening foreign exchange reserves. Around $3.4 billion was allocated to development projects.
Trade and Investment Snapshot
Pakistan’s merchandise exports declined by 6% during FY2025-26, reaching $30 billion, while imports exceeded $69 billion, resulting in a trade deficit of nearly $40 billion.
Foreign direct investment (FDI) remained below $2 billion during the fiscal year.
Key Financing Sources
According to the official data:
- Saudi Arabia rolled over $5 billion in deposits and also extended $1 billion under its oil financing facility before the arrangement expired in April.
- China maintained $4 billion in deposits and disbursed an additional $393 million in guaranteed loans.
- Pakistan raised around $1 billion through Panda Bonds and private placements.
- Commercial borrowing totaled $1.9 billion, including $1.7 billion from the China Development Bank.
- The Asian Development Bank (ADB) disbursed $1.8 billion.
- The World Bank released nearly $2 billion.
- The Islamic Development Bank (IsDB) provided $1 billion in financing.
- The government also mobilized more than $3 billion through Naya Pakistan Certificates.
At the end of June, the State Bank’s foreign exchange reserves stood at $18.5 billion, supported by external financing, deposit rollovers, refinancing arrangements, and central bank dollar purchases.
