Pakistan Secures Over $12 Billion Foreign Loans In 11 Months Of FY26

Pakistan received $12.106 billion in foreign assistance during the first 11 months of fiscal year 2025-26, marking a 75.7 percent increase from $6.891 billion in the same period last year, according to data released by the Ministry of Economic Affairs.

The figure excludes $2 billion disbursed by the International Monetary Fund under its $7 billion Extended Fund Facility. Including those inflows, Pakistan secured more than $14.2 billion in external financing during July to May. The State Bank of Pakistan separately records Extended Fund Facility disbursements, while climate-related support is booked by the Economic Affairs Division.

Foreign loans climbed 76.4 percent to $11.97 billion from $6.7 billion a year earlier, while grants declined 19 percent to $136 million. Pakistan has budgeted total external inflows of $19.9 billion for FY26, slightly higher than the $19.4 billion target set for the previous fiscal year.

Project financing accounted for $3 billion of total inflows, while non-project assistance stood at $9.1 billion. Budgetary support loans reached $7.287 billion against a full year target of $13.5 billion, and Pakistan also received the entire $1 billion available under the Saudi Oil Facility during the period.

Disbursements from multilateral lenders excluding the IMF totaled $3.1 billion, lower than the $3.367 billion received a year ago. Bilateral inflows surged to $3 billion, largely due to additional Saudi time deposits, while Pakistan also raised $1 billion through Eurobonds, secured a $202 million commercial loan from Standard Chartered Bank, London, and received $421 million from the IMF under its climate resilience facility.

Inflows slowed to $1.03 billion in May from $4.4 billion in April, mainly because the country did not receive fresh Saudi deposits during the month. However, the May inflows were still 29 percent higher than the $797 million recorded in the same month last year.