IMF Sees Pakistan’s Gross Financing Needs At $91.5 Billion Till FY2025-26

The International Monetary Fund (IMF) has projected Pakistan’s gross external financing needs at $91.5 billion over a period of 3 years till the financial year 2025-26.

According to data gathered by the IMF staff and Pakistani authorities under the $3 billion Standby Arrangement, the gross financing needs for the next three years is $91.53 billion, while the current account deficit (CAD) is expected to be $20.618 billion from 2023-24 to 2025-26.

In FY24 alone, the cash-strapped nation’s gross financing needs are expected to rise as high as $28.4 billion, with external debt repayments to be in the $22-$23 billion range and an amount of $6.4 billion needed to manage CAD during the period. Also, forex reserves held by the State Bank of Pakistan are projected to close at $11.7 billion by the end of FY24.

Consequently, gross financing needs of the country could total $30.6 billion in FY25, while CAD is expected at around $6.75 billion and SBP reserves at $12.67 billion during the period.

Finally in FY26, the funding requirement would be $32.5 billion while foreign exchange reserves held by SBP are expected to clock in at $13.8 billion by the end of that year.

The country’s imports are projected at $64.109 billion in FY24 (current), $64.9 billion in FY25, and $71.115 billion in FY26. Meanwhile, exports are expected to be $30.8 billion in FY24, $31.14 billion in FY25, and $35.8 billion in FY26.