Pakistan secured approximately $694.5 million in fresh international loans and aid throughout the last month (July).
As per the report from the Economic Affairs Division (EAD) regarding Foreign Economic Assistance (FEA), the nation has obtained just $694.5 million in the initial month of the present fiscal year. This figure represents merely 3.5% of the total allocated yearly sum, with Pakistan intending to secure $19.9 billion through foreign economic aid throughout the current financial cycle, which spans 2025–26. Multilateral institutions provided $379.88 million within the first month of this financial year. Bilateral allocations amounted to $118.4 million. Additionally, Pakistan secured $196.22 million via ‘Naya Pakistan Certificates.’
During the reviewed period, the Asian Development Bank (ADB) allocated $22.45 million. The IDA contributed $57.69 million, whereas the IBRD provided $52.56 million. The AIIB released $1.99 million, and IFAD distributed $3 million. Additionally, the nation received $131.2 million from IsDB (short-term). In July, contributions included $6 million from China, $8.5 million from France, $2.02 million from Germany, $0.81 million from Japan, $0.6 million from South Korea, $0.3 million from Kuwait, $100 million from SFD (Oil Facility), and $0.19 million from the United States.
For the fiscal year 2025-26, the government anticipated borrowing $19.9 billion through foreign economic aid. According to the breakdown, Pakistan planned to obtain $1.362 billion from bilateral lenders, $5.041 billion from multinational organizations, $3.1 billion from international commercial banks, $9 billion via term deposits, $609 million through the Naya Pakistan Certificates, and $410 million from the International Monetary Fund (IMF). Among the multilateral sources, the nation intended to secure $1.9 billion from the Asian Development Bank (ADB), $105.4 million from the Asia Infrastructure Investment Bank (AIIB), $419.556 million from the International Bank for Reconstruction and Development (IBRD), $1.663 billion from the International Development Association (IDA) of the World Bank, $49.002 million from the Food and Agriculture Organization (IFAD), $183.596 million from the Islamic Development Bank (IsDB), $700 million from the short-term facilities of the IsDB, and $3.853 million from OPEC funding. Regarding bilateral support, the administration allocated $36.599 million from China, $60.985 million from Denmark, $17.759 million from the United States, $46.407 million from Saudi Arabia, $1 billion from the SFD oil initiative, and $52 million from South Korea.
In parallel, the nation is expected to allocate approximately Rs8.206 trillion for debt repayment, encompassing both interest charges and principal repayments throughout the financial year 2025-26. This figure represents 46.7% of the overall budget allocation of Rs17.573 trillion. The government has set aside Rs8.206 trillion in the 2025-26 budget, compared to Rs9.775 trillion initially planned for this fiscal year, which was subsequently adjusted to Rs8.945 trillion. For foreign debt management during the 2025-26 budget period, the country will utilize Rs1.009 trillion, slightly less than the Rs1.038 trillion designated for the present fiscal year—this amount stayed unchanged even after revisions at Rs1.038 trillion. Regarding internal debt obligations, the administration plans to expend Rs7.197 trillion in 2025-26, down from Rs8.736 trillion in 2024-25, which had been revised earlier to Rs7.906 trillion.
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