Pakistan’s dependence on foreign borrowing increased during the first six months of the current fiscal year. The country secured Rs. 1,272 billion ($4.5 billion) in external loans and grants, official documents revealed. This is $904 million more than the $3.6 billion Pakistan received in the same period last year.
The inflows came from multiple lenders, including the World Bank, Asian Development Bank (ADB), Islamic Development Bank, and commercial creditors. Pakistan aims to borrow a total of Rs. 4.507 trillion (around $20 billion) in the current fiscal year to meet budgetary and balance-of-payments needs.
Of the total inflows between July and December, foreign loans accounted for Rs. 1,254 billion, which is 29 percent higher than the amount raised in the same period last year. Pakistan also received foreign grants worth Rs. 17.67 billion during this period.
The documents highlighted that Pakistan received $1.2 billion through the Naya Pakistan Certificate, while Saudi Arabia provided an oil facility worth $600 million on a deferred payment basis. Non-project aid totaled Rs. 785 billion, and project-related financing stood at Rs. 487 billion. Of the total, Rs. 458.72 billion was received as budgetary support.
Among bilateral and multilateral lenders, Saudi Arabia extended an oil facility valued at Rs. 170 billion, and the Islamic Development Bank provided loans worth Rs. 137 billion. Total project aid reached Rs. 487 billion in the first half of the year.
Financing from the International Monetary Fund (IMF), including a $1.2 billion tranche, is accounted for separately. Including IMF disbursements, Pakistan’s external debt inflows reached approximately $5.7 billion.
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Analysts say rising external borrowing highlights Pakistan’s growing reliance on foreign funding to manage fiscal pressures. The government’s strategy will be closely monitored as it seeks to meet its $20 billion borrowing target for the year.
