Pakistan secured $24 billion in external financing in FY 2024-25

ISLAMABAD: Pakistan received $24 billion from external sources during the first ten months of the ongoing FY2024- 25, according to official documents released by the Economic Affairs Division.

According to the report, the inflows include $14.1 billion comprising funding from the International Monetary Fund (IMF) and the rollover of deposits by friendly countries such as Saudi Arabia, the United Arab Emirates, and China.

The documents reveal that Pakistan secured over $6 billion in external funds during the ten-month period, including $5.92 billion in loans and $583 million in grants.

These figures are separate from the $2.1 billion disbursed by the IMF during the same period, which is not counted in the primary disbursement total.

According to the Economic Affairs Division, Pakistan received $2.97 billion from multilateral financial institutions between July and April, while bilateral lenders, including China and the United States, provided $370 million.

Pakistan also acquired $760 million in commercial loans and raised $1.61 billion through the Naya Pakistan Certificate initiative.

The documents further show that over $3 billion was received in the form of budget support, while $2.63 billion was allocated for various development projects.

The government of Pakistan had set an annual external financing target of $19.39 billion for the current fiscal year, which has already been exceeded due to additional inflows from the IMF and friendly nations.

Earlier it emerged that the Pakistan government was preparing to secure $4.9 billion in external commercial financing for the upcoming FY2025-26.

As per details, Pakistan government’s plan includes obtaining $2.64 billion in short-term loans from commercial banks at expected annual rate of 7 to 8 per cent and without stringent conditions or performance targets.

In addition, $2.27 billion is proposed to be raised through long-term borrowing from commercial banks.