The federal government secured $11 billion in foreign loans between July 2025 and April 2026, up from nearly $6 billion last year.
A photo showing $100 bills. SOURCE: REUTERS
ISLAMABAD:
Pakistan secured nearly $11 billion in external loans during the first 10 months of the current fiscal year 2025-26, an increase of 83 percent compared to the same period of the previous fiscal year, according to official data released by the Economic Affairs Division (EAD).
Figures show the federal government secured $11 billion in foreign loans and financing between July 2025 and April 2026, compared to almost $6 billion borrowed in the corresponding period last year.
The government plans total external financing of $19.39 billion for the current fiscal year, with additional borrowing expected in May and June.
According to EAD statistics, Pakistan received $4.5 billion in April alone, reflecting a sharp increase in external flows.
The government also received grants worth $120 million during the July-April period. In local currency, the government has so far secured Rs 3,103 billion in external financing in the current fiscal year.
The data further shows that Pakistan received almost $5 billion more in loans than the previous year.
During the month of April of the last financial year, total foreign assistance amounted to $570 million, meaning that the month of April 2026 alone saw a seven-fold increase in foreign borrowing compared to the same month last year.
These figures do not include funding received from the International Monetary Fund, which separately exceeded $2.5 billion.
Of the total borrowings during the 10-month period, non-project assistance amounted to $8.31 billion, while project-related financing amounted to $2.756 billion.
On non-project assistance, budget support represented $4.586 billion.
Saudi Arabia extended a $1 billion oil facility to Pakistan on deferred payment terms, while the Islamic Development Bank provided loans worth $480 million. Grants worth $21.8 million were also received in April.
