Pakistan secures $1.81bn in foreign loans in Q1FY26

Pakistan received $1.81 billion in foreign loans during the first quarter (July–September) of the current fiscal year, according to data released by the Economic Affairs Division (EAD).

The report showed that the country did not secure any commercial loans during this period. The total foreign inflows were higher than the $1.3 billion recorded in the same period last fiscal year, The News reported on Friday.

The government envisaged fetching $19.92 billion in the form of foreign loans and grants in the current fiscal year, out of which $9 billion was in the form of deposits from the Kingdom of Saudi Arabia and SAFE deposits from China. It is expected that these deposits would be rolled over in the current fiscal year. So, the remaining foreign loans to the tune of $10.9 billion will be disbursed.

The government has received $334.8 million in the form of foreign loans from bilateral partners in the first quarter of the current fiscal year. 

The Kingdom of Saudi Arabia disbursed $300 million in the first quarter on account of the Saudi Oil Facility, while China disbursed $9.75 million, France $8.5 million, Germany $3.03 million, Japan $6.16 million, Korea $4.21 million, Kuwait $0.3 million, Saudi Arabia $2.59 million, and the USA $0.25 million.

The multilateral creditors disbursed $939.28 million in the first three months of the current fiscal year. The World Bank remained the largest multilateral creditor in the form of IDA and IBRD lending. The WB disbursed $287.32 million in the shape of an IDA loan, while $144.94 million was disbursed as an IBRD loan.

The Islamic Development Bank (IsDB), for short-term borrowing, disbursed $311.43 million in the first three months of CFY26. It also disbursed $50 million for project financing in the first quarter of the current fiscal year.

The Asian Development Bank disbursed $116.96 million during the period, while the Asian Infrastructure Investment Bank provided $20.7 million in loans.

The IFAD has disbursed $7.45 million in the first three months of the current fiscal year. On account of Naya Pakistan Certificates, the government has fetched $541.57 million in the first quarter of the ongoing fiscal year. 

So far, the government has not launched any international bond, raised commercial financing and any loan for budgetary support.