Pakistan secures $5.5 billion in foreign loans in nine months

Pakistan has received $5.5075 billion in foreign financial assistance during the first nine months of the ongoing fiscal year, significantly lower than the $6.89 billion it had secured during the same period last year.

The latest figures, released by the Economic Affairs Division, show that the inflows constitute just 28.4% of the country’s annual borrowing target of $19.39 billion. The total includes $5.37 billion in loans and $135.6 million in grants but does not include the $1 billion tranche received from the International Monetary Fund (IMF).

The decline of $1.39 billion in financial support raises red flags about Pakistan’s growing dependence on external financing, especially at a time when the country is grappling with economic uncertainty and fiscal pressure.

Despite the dip, international financial institutions remained the primary source of support. The Asian Development Bank (ADB) disbursed $1.18 billion, and the World Bank released $720 million. Altogether, multilateral lenders provided $2.8276 billion in support over the nine-month period.

Bilateral partners also stepped in with considerable assistance. Saudi Arabia rolled over $3 billion, the United Arab Emirates extended a rollover of $2 billion, and China followed suit with the rollover of a $1 billion loan. In terms of direct bilateral assistance, France contributed $108 million, China added $99.1 million, the United States provided $40 million, Japan contributed $28.8 million, and Kuwait extended $24.4 million.