Pakistan managed to secure over $22 billion in external funding during the last fiscal year, including nearly $2 billion from the International Monetary Fund (IMF), according to the latest Pakistan external funding report released by the Economic Affairs Division (EAD).
While the inflows provided much-needed relief to the country’s foreign exchange reserves, they still fell short of the government’s ambitious external financing target by more than $7.2 billion, sparking concerns over the country’s growing reliance on short-term loans and rollovers.
The government had aimed to raise $19.35 billion in foreign loans and grants for the fiscal year 2024–25, but actual net inflows stood at $12.13 billion between July and June. The shortfall highlights the challenges Pakistan faces in meeting its financing needs through sustainable, long-term avenues.
A significant portion of the received funds—approximately $8 billion—came in the form of rollovers from friendly countries such as China, Saudi Arabia, and the United Arab Emirates. These rollovers played a crucial role in helping Pakistan avoid a balance of payments crisis by maintaining its foreign exchange reserves.
According to reports, multilateral development institutions also contributed generously, with $4.83 billion in total. The Asian Development Bank (ADB) led the way with $2.13 billion, followed by the World Bank, which provided $1.37 billion. The Islamic Development Bank (IsDB) extended a short-term loan of $552.3 million, along with an additional $186.3 million for development purposes.
Additionally, the International Bank for Reconstruction and Development (IBRD)—a branch of the World Bank Group—disbursed $392.3 million during the fiscal year.
Commercial borrowing also remained a key pillar of external financing, with Pakistan raising $4.29 billion in commercial loans. Meanwhile, the Naya Pakistan Certificates, a savings initiative targeted at overseas Pakistanis, attracted $1.91 billion in investments.
Bilateral partners contributed around $600 million, with countries such as China, Saudi Arabia, France, Japan, the United States, Kuwait, and South Korea providing support. Notably, Saudi Arabia contributed $200 million specifically for the import of petroleum and crude oil—an essential cushion against volatile global energy prices.
