Pakistan received $471.2 million in foreign loans in October 2025, marking a 7.9 percent increase from September. The inflow was also 13.6 percent higher than the same month last year, according to the Economic Affairs Division.
From July to October FY26, total external financing for Pakistan reached $2.29 billion, representing only 11.5 percent of the government’s $19.92 billion annual target. Non-project support dominated, with $1.52 billion (66 percent) directed as budgetary aid, while $773 million (34 percent) went to development projects.
Saudi Arabia remained the largest bilateral contributor to Pakistan’s foreign inflows. The Saudi Fund for Development provided $400 million through its oil facility, the single largest inflow, bringing Saudi total support to $404.2 million. The Islamic Development Bank supplied $361.43 million in short-term financing.
Naya Pakistan Certificates contributed $734.71 million, accounting for 32 percent of total inflows. Multilateral lenders provided $1.11 billion, or 48.3 percent of the total. This included $347.5 million from the World Bank group, $167.4 million from the Asian Development Bank, and $411.6 million from the Islamic Development Bank.
Bilateral partners contributed $449.9 million, with China’s share limited to $9.75 million. Pakistan’s external financing continues to rely on rollover deposits, such as Saudi Arabia’s $5 billion time deposit and China’s $4 billion SAFE deposit, rather than new liquidity.
No commercial borrowing has materialized so far this fiscal year, despite the government budgeting $3.1 billion from foreign banks. Project inflows remain slow, with Dasu Hydropower Project receiving $13.16 million and Karachi’s Yellow Line project $55.89 million from July to October.
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The data highlights Pakistan’s continued dependence on bilateral and multilateral support to meet its external financing needs. Limited commercial borrowing and project inflows remain a challenge for the country’s fiscal strategy.
