ISLAMABAD, December 25, 2025 – Pakistan recorded a notable increase in foreign loan inflows during the first five months of the current fiscal year, with loans rising 46 percent to $2.521 billion from July to November. Overall external inflows, including grants, reached $3.032 billion – a 14 percent improvement over the $2.667 billion in the same period last year, according to data from the Ministry of Economic Affairs.
This growth comes amid ongoing efforts to stabilize the economy, supported in part by multilateral commitments, though a separate $1.2 billion IMF disbursement this month will reflect in later accounts.
$3.03 billion borrowed till November. Add $1.2 billion in December from IMF. Total hovering $4.23bn in first 6 months. Pakistan failed to attract investments, base case rests on borrowing. pic.twitter.com/FnTzjRfuf2
— Muzzammil Aslam (@MuzzammilAslam3) December 24, 2025
Key Highlights
- Total foreign inflows (loans + grants): $3.032 billion in July-November FY26 (up 14% from $2.667 billion last year)
- Foreign loan inflows: $2.521 billion (surge of 46.22% from $1.724 billion)
- Grants: $54 million (down 43% from $94 million)
- November inflows: $511 million (higher than October’s $471 million but lower than last year’s $944 million)
- Project financing: $1.157 billion; non-project inflows: $1.875 billion
- Budget support loans: Approximately $966 million realized against annual target of $13.5 billion
- Saudi oil facility: $500 million received ($100 million monthly) against $1 billion annual target
- Multilateral inflows (excluding IMF): $1.258 billion against $5 billion full-year target
- Bilateral inflows (excluding key allies): $808 million (200% higher than last year)
- Naya Pakistan Certificates: $966 million (already surpassing $609 million annual target)
Breakdown of Foreign Loan Inflows and Sources
The Ministry of Economic Affairs reported that combined bilateral and multilateral disbursements totaled $2.066 billion in the five-month period, against a full-year target of $6.4 billion.
Multilateral lenders provided the bulk of support, though inflows remained below annual projections so far. Bilateral contributions from countries other than strategic partners showed strong growth, reflecting diversified financing efforts.
Inflows through Naya Pakistan Certificates from overseas Pakistanis proved particularly robust – families abroad continued to channel funds home despite global challenges.
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Outlook Against Annual Targets
The government has set an ambitious $19.9 billion target for total foreign inflows this fiscal year, slightly higher than last year’s $19.4 billion.
This includes significant expected contributions from multilateral and bilateral sources, international bonds, commercial loans, and time deposits from friendly nations like Saudi Arabia ($5 billion) and China ($4 billion SAFE deposits).
While the July-November period shows progress in loan disbursements, authorities continue working to meet broader financing needs through disciplined fiscal management and international partnerships.
These inflows play a vital role in supporting Pakistan’s external account stability and economic recovery efforts, helping bridge gaps while reforms take hold.
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