Foreign borrowing jumps 83% in 10 months of FY26

ISLAMABAD:

Pakistan secured nearly $11 billion in external loans during the first 10 months of the current fiscal year 2025-26, marking an increase of 83 per cent compared to the same period of the previous fiscal year, according to official data released by the Economic Affairs Division (EAD).

The figures show that the federal government obtained $11 billion in foreign loans and financing between July 2025 and April 2026, compared to nearly $6 billion borrowed during the corresponding period last year.

The government has projected total external financing of $19.39 billion for the current fiscal year, with additional borrowing expected during May and June.

According to EAD statistics, Pakistan received $4.5 billion in April alone, reflecting a sharp rise in external inflows.

The government also received grants worth $120 million during the July-April period. In local currency terms, the government has so far secured Rs3.103 trillion in external financing during the current fiscal year.

The data further showed that Pakistan received nearly $5 billion more in loans than the previous year.

During April of the last fiscal year, total external assistance stood at $570 million, meaning April 2026 alone recorded a sevenfold increase in foreign borrowing compared to the same month last year.

The figures do not include financing received from the International Monetary Fund, which exceeded $2.5 billion separately.

Of the total borrowing during the 10-month period, non-project aid amounted to $8.31 billion, while project-related financing stood at $2.756 billion.

Out of the non-project assistance, budgetary support accounted for $4.586 billion.

Saudi Arabia extended a $1 billion oil facility to Pakistan on deferred payment arrangements, while the Islamic Development Bank provided loans worth $480 million. Grants worth $21.8 million were also received during April.