Pakistan has secured nearly $12 billion in foreign loans during the first eight months of FY25, aiming to exceed its $19.2 billion target by June. A significant portion—$6 billion—came from rollovers by China, Saudi Arabia, and the UAE, while fresh loans fell 25% to $5.95 billion compared to last year. The Economic Affairs Division (EAD) reported that total Foreign Economic Assistance (FEA) stood at $4.95 billion, excluding the $1 billion IMF disbursement received in October.
Pakistan’s external financing heavily relies on rollovers, with $3 billion from Saudi Arabia, $2 billion from the UAE, and $1 billion from China. China further rolled over $2 billion in March, increasing its total to $3 billion. The government anticipates $12.7 billion in annual rollovers, which are essential given the country’s net international reserves (NIR) deficit. In February 2025, total inflows were $365 million, down from $830 million in January.
Multilateral lenders provided $2.49 billion, significantly lower than last year’s $3.8 billion, while bilateral disbursements fell to $334 million from $949 million. However, commercial lending saw slight recovery, with $500 million from UAE-based lenders. Pakistan plans to raise $1 billion through international bonds and $9 billion from bilateral partners, including $5 billion from Saudi Arabia and $4 billion in China’s SAFE deposits, to bridge its external financing gap under the IMF agreement.
Overseas Pakistanis significantly increased their contributions to $1.3 billion through Naya Pakistan Certificates, more than doubling last year’s $590 million. Among multilateral lenders, the Asian Development Bank (ADB) led with $1.098 billion, followed by the World Bank with $849 million. Despite these inflows, Pakistan continues to face financial hurdles, relying on external assistance to stabilize its economy and meet fiscal targets.