Foreign borrowing up 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, an increase of 83 percent compared to the same period in the previous fiscal year, according to official data released by the Economic Affairs Division (EAD).

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

The government has forecast total external financing of $19.39 billion for the current financial year, with further borrowing expected during May and June.

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

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

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

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

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

Of the total borrowing during the 10-month period, non-project support accounted for $8.31 billion, while project-related financing accounted for $2.756 billion.

Out of the non-project assistance, budget support accounted for 4.586 billion dollars.

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