ISLAMABAD: Pakistan’s foreign debt inflows soared to $12.4 billion during FY25, primarily due to a last-minute $3.4 billion commercial loan taken from international banks to meet a key IMF requirement, as revealed in the Economic Affairs Division (EAD) report on Tuesday.
According to the EAD data, a staggering 43% of the total yearly inflow — roughly $5.25 billion — was received in June alone. The preceding 11 months (July to May) saw $6.89 billion in disbursements. This sharp rise was mainly driven by loans from commercial sources in China and the UAE.
Including central bank-held deposits and loan rollovers, the total external inflows reached nearly $24 billion for FY25. The original annual target was $19.4 billion, which included $9 billion in expected rollovers from allied nations. However, the report did not clarify how much of this rollover target was actually fulfilled.
The fresh loans and grants in FY25 totaled $12.14 billion — a 24% increase from last year’s $9.81 billion. Out of this, $8.6 billion (71%) was secured for programme and budgetary support, up 28% from $6.7 billion in FY24. Project-specific financing amounted to $3.5 billion, up 17% from last year’s $3 billion.
Multilateral lenders disbursed $4.84 billion, compared to $4.28 billion in the previous fiscal year. On the other hand, bilateral disbursements dropped 35% to $600 million from last year’s $920 million. Combined, these sources contributed $5.44 billion in FY25 — slightly higher than FY24’s $5.2 billion.
Foreign commercial borrowing surged by a massive 330%, reaching $4.3 billion — exceeding the government’s original estimate of $3.8 billion, despite early hesitation from lenders.
Meanwhile, the planned $1 billion through international bonds couldn’t be raised. Expected inflows worth $9 billion from Saudi Arabia and China — including $5 billion in deposits from Riyadh and $4 billion in SAFE deposits from Beijing — remain critical for fulfilling IMF conditions and covering external financing needs.
Additionally, remittances through the Naya Pakistan Certificates increased sharply to $1.9 billion in FY25 — up 73% from $1.1 billion in FY24.
Among multilateral institutions, the Asian Development Bank topped the list with $2.13 billion in disbursements, followed by the World Bank with $1.77 billion.
It’s worth noting that the report excludes the $2 billion released by the IMF under its $7 billion Extended Fund Facility. This amount is recorded separately by the State Bank of Pakistan.
