Pakistan secures $5.17bn foreign loans in first seven months of FY26

Pakistan has secured dollar inflows in the shape of $5.17 billion foreign loans in the first seven months (July-Jan) of the current fiscal year as against $4.584 billion foreign loans fetched in the same period of the previous financial year.

According to details shared by the Economic Affairs Division (EAD), the government preferred releasing the data on foreign loans and grants which got delayed, probably due to the review talks held between Pakistan and the IMF.

As the parleys concluded, the EAD released the official data showing that the disbursement of foreign loans stood at $5.17 billion during the July-January period of FY26 as against $4.584 billion in the same period of the previous financial year.

The guaranteed loan from China stood at $269.42 million in the first seven months of CFY26. Total bilateral loans disbursement stood at $931.88 million during the first seven months of the current fiscal year, out of which the Kingdom of Saudi Arabia disbursed $708 million. Saudi Arabia provided $700 million in the form of an oil facility on deferred payment in the first seven months, as $100 million was disbursed every month.

China disbursed $72.28 million, Denmark $71.15 million, France $26.73 million, Germany $5.45 million, Japan $15.53 million, Korea $9.49 million, Kuwait $22.06 million and the USA only $0.49 million. After the closure of USAID, the US assistance has shrunk significantly.

The multilateral creditors have disbursed $2.126 billion in the first seven months of the current fiscal year, out of which the World Bank disbursed the largest loans to the tune of $608 million as an IDA loan and $259 million as an IBRD loan in the first seven months of CFY26.

The Asian Development Bank disbursed $624.59 million, Asian Infrastructure Investment Bank (AIIB) $72.95 million, Islamic Development Bank a short-term loan of $483.78 million, IDB $56.13 million, IFAD $2,139 million and OPEC Fund $0.79 million.

In shape of commercial loans from the Standard Chartered Bank London, the government secured $144.42 million in the first seven months of the current financial year.

The EAD data shows that the IMF disbursed $209 million in the first seven months, as this was the disbursement made by the Fund on account of first installment under Resilience and Sustainability Facility (RSF). However, the IMF’s release of third tranche worth $1 billion was not included into the data released by the EAD because the Balance of Payment (BoP) support is booked on the balance sheet of State Bank of Pakistan. After incorporating the release of $1 billion tranche, the total disbursement of foreign loans stood at over $6 billion.

This EAD data did not show rollover obtained by the friendly countries which stood at $12 billion from KSA, China and the UAE.

In the shape of Naya Pakistan Certificates, both conventional and Islamic, have so far fetched $1.488 billion in the first seven months of the current financial year.