ISLAMABAD: Pakistan has secured $6 billion in foreign loans during the first eight months (July-February) of the current fiscal year, here on Thursday. This includes inflows from international creditors as the country prepares to resume the $100 million Saudi Oil Facility (SOF) from March 2025.
The SOF, worth $1.2 billion, will be available to Pakistan for a 12-month period until February 2026. The government has already secured significant inflows, with $1 billion from the IMF under the Extended Fund Facility (EFF), though this is not reflected in the Economic Affairs Division (EAD) data.
With a total budgetary estimate of $19.4 billion in foreign loans for the fiscal year 2024-25, Pakistan has received foreign deposits worth $9 billion, including $5 billion from Saudi Arabia and $4 billion from China. These inflows, combined with rollover deposits from the State Bank of Pakistan, leave Pakistan needing to secure $4.4 billion in foreign loans in the next four months (March to June 2025) to meet the target.
According to EAD data, Pakistan has fetched $2.49 billion from multilateral creditors so far, leaving the government with a need to accelerate disbursements from these sources in the remaining months of the fiscal year. Notable loans include $306 million from China, $1.09 billion from the Asian Development Bank (ADB), and $60.25 million from the Asian Infrastructure Investment Bank (AIIB).
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The World Bank’s loan under IBRD stood at $217.8 million, and the bank’s soft lending under IDA amounted to $642.5 million. Bilateral creditors, including France, China, Germany, Japan, and Saudi Arabia, contributed a total of $334.96 million.
Despite challenges, including the inability to launch international bonds, Pakistan has attracted $1.3 billion through Naya Pakistan Certificates, with further commercial loans planned.
The government’s proactive measures continue to address foreign debt requirements as the country navigates its fiscal path forward.
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