Pakistan got $6.08bn foreign loans, grants during July-April

ISLAMABAD: Out of the total envisaged target to raise $19.4 billion from all multilateral and bilateral creditors and other avenues, Pakistan managed to secure foreign loans and grants of $6.08 billion during the first ten months (July-April) of the current fiscal year.

Pakistan secured only 20 percent of its foreign commercial loans in the first ten months against the envisaged target of $3.77 billion for the current fiscal year.

The EAD released this number, but the IMF loan tranche is not shown in the Economic Affairs Division’s data. The government had envisaged generating $3.779 billion through foreign commercial loans, and so far Islamabad could raise only $760 million. Islamabad has generated $200 million in foreign commercial loans in April 2025, while the remaining $500 million has been generated in nine months of CFY.

The official data shows that the government has so far been unable to launch international bonds and operationalise the Saudi Oil Facility (SOF) in the first ten months of the ongoing fiscal year.

On foreign commercial loans, Pakistan is looking to generate $1 billion from Standard Chartered Bank (SCB), Dubai Islamic Bank, and three other UAE-based banks before end of June 2025. The Ministry of Finance has accomplished all procedural requirements as $500 million, $200 million, and $100 million each, with contributions from three different banks, will be materialised before June 30, 2025.

The commercial re-financing from China, the sources said, is also awaited from Chinese banks including ICBC to the tune of $1.3 billion. There are no dates confirmed for re-financing of these foreign commercial loans but one top official of the Finance Division confirmed that there were no hitches and it was expected to be done anytime soon. However, the official did not share any confirmed timeframe from Chinese banks.

China has given guaranteed loan of $364 million, out of which $58.41 million guarantee has been given in April 2025. From multilateral creditors, the total disbursement of foreign loans stood at almost $3 billion ($2.979 billion figures) in the current fiscal year. Out of total budgetary estimates of $1.6 billion, the Asian Development Bank (ADB) has disbursed $1.253 billion in first ten months of CFY.

The disbursement from the Asian Infrastructure Investment Bank (AIIB) has surpassed its annual target as the China-based multilateral bank provided project loans of $87.58 million in first ten months against budgetary projection of $41.39 million for whole financial year.

The World Bank disbursed $781 million as IDA funding and $280 million in shape of IBRD in the first ten months of CFY. The Islamic Development Bank (IsDB) disbursed $375 million as short term facility and $149 million for project loans. The EIB disbursed $10.53 million so far.

Among bilateral partners, France has become the largest debt provider as Paris disbursed $110.61 million in the first ten months of CFY. China is the second-largest debt provider with a disbursement of $99.17 million.

Germany disbursed $33 million, Japan $30 million, $Korea $12 million, Kuwait $24.4 million, Saudi Arabia $17.63 million, and USA $41.23 million so far in the current fiscal year. Through Naya Pakistan Certificates, the government generated $1.6 billion.

The EAD did not share details about rollover of deposits from Saudi Arabia and China to the tune of $5 billion and $4 billion, respectively. The rollover from friendly countries is considered to be secured so the government will have to secure around $3 billion in the last two months (May and June) of 2025.