ISLAMABAD: Pakistan has successfully secured nearly $20 billion in foreign loans and grants during the first eleven months of the 2024-25 fiscal year, surpassing the annual target of $19.2 billion set for June 30.
This figure includes a mix of fresh inflows and rollover funds from key partners such as China, Saudi Arabia, and the United Arab Emirates (UAE).
Fresh Inflows and Rollovers
According to the Economic Affairs Division’s report on Foreign Economic Assistance, fresh loans and grants totaled $6.89 billion, slightly down by about 9 percent compared to the same period last year.
Almost half of the total $20 billion assistance came from rollover loans and deposits amounting to roughly $8 billion from China, Saudi Arabia, and the UAE.
These rollovers form part of Pakistan’s $12.7 billion annual rollover portfolio, which helps maintain the country’s net international reserves at around $3 billion.
The report also noted that foreign economic assistance inflows decreased by 8.7 percent due to delays in the International Monetary Fund (IMF) programme, which affected confidence among commercial lenders.
The IMF’s separate disbursement under the $7 billion Extended Fund Facility added about $2 billion during this period.
Allocation and Contributors
Of the $6.89 billion received, about $3.9 billion was directed towards budgetary support and programme loans, while $2.98 billion was used for project financing.
Multilateral lenders played a significant role, contributing $3.37 billion, an increase from $3.14 billion last year.
However, bilateral disbursements declined sharply by 45 percent to $487 million.
Pakistan also saw some recovery in foreign commercial loans, receiving approximately $903 million from lenders in the UAE, though this was below the $3.8 billion target.
Funds from overseas Pakistanis via Naya Pakistan Certificates rose to $1.77 billion, up from $1.05 billion last year.
The Asian Development Bank and the World Bank also increased their disbursements to $1.39 billion and $1.23 billion respectively during this period.
