Foreign loan inflows surge to $12.1bn

Published
0
A file photo of stacks of US currency. — Reuters/File
A file photo of stacks of US currency. — Reuters/File

ISLAMABAD: Foreign economic assistance (FEA) inflows to Pakistan surged by almost three-fourths to $12.1bn in the first eleven months (July-May) of 2025-26, mainly on the back of programme support of the International Monetary Fund (IMF).

The total inflows (excluding IMF), both loans and grants, in the first 11 months of the current fiscal year, amounted to $12.106bn, up from $6.891bn last year, an increase of 75.7pc. Inflows in May alone amounted to $1.03bn, down 76.5pc from $4.4bn in April, owing to a one-time $3bn additional Saudi flows in April, and up 29pc compared to $797m in the same month last year.

These inflows do not include $2bn disbursed by the International Monetary Fund in two instalments under the $7bn Extended Fund Facility (EFF), bringing the cumulative inflows in 11MFY26 to over $14.2bn. The EFF disbursements are accounted for separately by the State Bank of Pakistan, while climate support is reported by the EAD.

Of the total, foreign loan inflows in 11MFY26 surged 76.4pc to $11.97bn from $6.7bn in the corresponding period last year. Grants, on the other hand, amounted to just $136m in 11 months, compared to $168m of last year, showing a 19pc fall.

The target for total foreign inflows for FY26 was set at $19.9bn in the budget 2025-26, up from $19.4bn last year.

The Ministry of Economic Affairs on Wednesday said it had received $12.106bn in total foreign inflows in the first 11 months of the year, compared with $6.891bn in the same period last year.

The EAD said that of the $12.1bn in inflows, $3bn were received for project financing, while non-project inflows amounted to $9.1bn.

This meant about $7.287bn loans were received in 11 months for budget support. This is despite the annual budget support target set at $13.5bn, down from $15bn last fiscal year.

The authorities were also able to mobilise $1bn against the Saudi Oil facility within 11 months, exhausting the entire annual facility.

Against a full-year target of $5bn from multilaterals (excluding the IMF), Pakistan received only $3.1bn in 11MFY26, down from $3.367bn in the same period last year, when the annual target was $4.5bn.

Total inflows from bilateral lenders (excluding fixed deposits from two strategic friendly countries) in 11MFY26 amounted to $3bn, against an annual target of $1.36bn, mainly because of incremental Saudi time deposits.

Excluding the Saudi deposits, total bilateral inflows from all other sovereign lenders amounted to $1.3bn, including $1.012bn from normal Saudi inflows.

Total inflows from bilateral and multilateral lenders amounted to $4.426bn in 11MFY26, against the annual target of $6.4 bn.

The government also raised $1bn in Eurobonds against zero bonds last year and borrowed a $202m commercial loan from Standard Chartered Bank, London, this year, besides $421m from the IMF under the climate resilience fund.

Published in Dawn, June 18th, 2026


Correction: A previous version of this story said that a $3bn reduction in Saudi deposits had affected inflows in May. It was, in fact, a one-time $3bn inflow from Saudi Arabia. The error is regretted.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Referendum talk
Updated 14 Nov, 2026

Referendum talk

Unless the PPP is deliberately using Sindh as a bargaining chip, it should issue a clarification with a clear, consistent position on new administrative units, not one tailored to protect its home turf.
Mineral wealth
Updated 14 Nov, 2026

Mineral wealth

Minerals should not be presented as a solution to Pakistan’s long-term economic difficulties. The aim should be to build an industrial base rather than export raw materials.
Late diagnosis
14 Nov, 2026

Late diagnosis

AS we mark World Diabetes Day today, Pakistan faces a troubling question: how many people are living with diabetes...
Climate challenges
Updated 13 Nov, 2026

Climate challenges

Pakistan cannot afford to confront its climate crises one disaster, one season and one international summit at a time.
Under fire
Updated 13 Nov, 2026

Under fire

KP police are increasingly vulnerable as they play a frontline role in ongoing operations against terrorists.
Used car imports
13 Nov, 2026

Used car imports

THE government’s effort to restrict used car imports appears to be faltering. So suggest the numbers. Despite...