ISLAMABAD – Pakistan has borrowed $1.38 billion as new foreign loans and grants during first two months (July and August) of the current fiscal year.
According to the Economic Affairs Division’s (EAD) report on Foreign Economic Assistance (FEA), the country has received $1.38 billion in the first two months of the current fiscal year, which is higher than the borrowing made in same period of the previous year. The amount is only 6.93 percent of the annual budgeted amount, as Pakistan has planned to borrow $19.9 billion under the foreign economic assistance during the ongoing financial year 2025-26. Multilateral lenders contributed $780.5 million in the first two months of the year 2025-26. Bilateral disbursements were recorded at $232.4 million. Pakistan has received $364.55 million as “Naya Pakistan Certificate”.
The Asian Development Bank (ADB) disbursed $89.5 million during the period under review. The IDA has provided $228.4 million and IBRD $128.5 million. The AIIB disbursed $17.37 million, while IFAD disbursed $3 million and the country received $311.43 million from IsDB (Short-term). China has given $7.75 million. France $8.5 million, Germany $3.03 million, Japan $5.75 million, Korea $4.21 million, Kuwait $0.3 million, SFD (Oil Facility) $200 million and United States $0.25 million during period July to August.
In the annual budget 2025-26, the government had projected to borrow $19.9 billion under the foreign economic assistance. The breakup showed that Pakistan would borrow $1.362 billion from the bilateral sources, $5.041 billion from the multilateral sources, $3.1 billion from foreign commercial banks, $9 billion time deposit, $609 million from Naya Pakistan Certificate and $410 million from the International Monetary Fund (IMF) during the upcoming financial year. In multilateral sources, the country would receive $1.9 billion from the Asian Development Bank (ADB), $105.4 million from AIIB, $419.556 million from IBRD, $1.663 billion from IDA of the World Bank, $49.002 million IFAD, $183.596 million from IsDB, $700 million from IsDB (short-term) and $3.853 million from OPEC funds. In bilateral sources, the government has budgeted $36.599 million from China, $60.985 million from Denmark, $17.759 million from the USA, $46.407 million from Saudi Arabia, $ one billion dollar from the SFD oil facility and $52 million from Korea.
