Pakistan Raises $16.2 Billion in External Financing but Misses FY2025–26 Target
Pakistan secured $16.2 billion in foreign loans during the financial year that ended on June 30, 2026, after China refinanced a $1.7 billion commercial loan.
However, the country was unable to achieve its target of securing $19.92 billion in loans and grants during fiscal year 2025–26, falling short of the target by $3.72 billion.
ADB Becomes Major Source of Foreign Loan Disbursements
In June 2026, the largest share of foreign loan disbursements came from multilateral lending institutions. The Asian Development Bank (ADB) emerged as the largest lender, disbursing $953.74 million during the final month of fiscal year 2025–26.
According to official data from the Economic Affairs Division for FY2025–26, the Government of Pakistan secured $1.7 billion in refinancing from the China Development Bank (CDB) and $203.33 million from Standard Chartered Bank (SCB) London. As a result, Pakistan obtained a total of $1.903 billion in foreign commercial loans during the fiscal year.
The government had planned to secure $3 billion in commercial loans. However, it missed this target by $1.1 billion during FY2025–26.
China Provides $392 Million Guarantee
China provided a guarantee worth $392 million during the last financial year.
Pakistan’s bilateral partners collectively disbursed $1.355 billion during FY2025–26. Of this amount, the Kingdom of Saudi Arabia provided $1.01 billion, mainly through the Saudi Oil Facility (SOF), which allowed payments to be deferred at a rate of $100 million per month until March 2026.
Pakistan has submitted a new request for the Oil Facility to resume for the medium term. However, the request remains under consideration.
Other bilateral partners also contributed to Pakistan’s financing during the fiscal year. China provided $108 million, Denmark $90 million, France $71.68 million, Germany $13.35 million, Japan $26.69 million, Korea $9.49 million, Kuwait $26.06 million, and the United States $0.64 million.
Multilateral Creditors Provide Significant Financing
Multilateral lenders collectively disbursed $5.03 billion during fiscal year 2024–25. This included $1.772 billion from the Asian Development Bank, $123.85 million from the Asian Infrastructure Investment Bank, $516 million through the World Bank’s International Bank for Reconstruction and Development (IBRD), and $1.5 billion through the World Bank’s International Development Association (IDA).
The Islamic Development Bank provided $68.13 million, while its short-term loan facility contributed $1.01 billion. The International Fund for Agricultural Development provided $25.5 million, the OPEC Fund contributed $0.11 million, and the United Nations provided $0.9 million.
Overall, Pakistan received $6.39 billion from multilateral and bilateral creditors during fiscal year 2025–26.
Pakistan Returns to International Bond Market
After remaining away from international capital markets for several years, Pakistan once again attracted the attention of international investors.
The country launched two international bonds worth a combined $1 billion. These included a $750 million Eurobond and a $250 million Panda bond.
Naya Pakistan Certificates Attract $3.049 Billion
Pakistan attracted $3.049 billion through Naya Pakistan Certificates (NPCs).
Of the total amount, $930.8 million came through conventional Naya Pakistan Certificates, while $2.118 billion was raised through Islamic Naya Pakistan Certificates.
The International Monetary Fund also disbursed $420 million to Pakistan under the Resilience and Sustainability Facility (RSF) for climate finance during the fiscal year.
The IMF’s disbursement under the Extended Fund Facility (EFF) is deposited into the accounts of the State Bank of Pakistan (SBP).
Pakistan also secured a $3 billion time deposit from the Kingdom of Saudi Arabia.
Foreign Economic Assistance Inflow Reaches $15.764 Billion
Adviser to the Ministry of Finance Khurram Shahzad stated that the $15.764 billion figure represents the net inflow of foreign economic assistance received directly by Pakistan’s central government during the July–June 2025–26 fiscal period. He clarified that the figure does not represent standard commercial bank deposits.
The total was calculated by combining $149.53 million in central grants, which include non-repayable assistance from bilateral countries, multilateral institutions, and the United Nations, with $15.61539 billion in central loans and financing instruments.
The loan and financing component consisted of several sources, including $4.991 billion in institutional multilateral loans, $2.118 billion through Naya Pakistan Certificates, $1.900 billion in foreign commercial bank lines, $1 billion in international sovereign bonds, $420 million in IMF funds, $1.25 billion in bilateral nation debt, and a $3 billion central bank time deposit from the Saudi Fund for Development.
