ISLAMABAD: With no projection for the Saudi Oil Facility (SOF) in the budget for 2026-27, Pakistan plans to raise $2 billion through the launching of international bonds such as Euro, Sukuk and Panda in the next fiscal year.
This indicates that Islamabad prefers to remain on the radar screen of international investors by launching international bonds in the budget for 2026-27. “We plan to launch international bonds in the fiscal year 2026-27,” a top official of the Finance Division told The News on Wednesday.
According to the budget documents for 2026-27, Pakistan plans to raise $23.378 billion from multilateral, bilateral, commercial loans and the launch of international bonds in the next fiscal year.
“The government has projected zero amount from the Saudi Oil Facility in the coming fiscal year against revised estimates of securing $1 billion in the shape of SOF in the outgoing fiscal year,” official documents show. Saudi Arabia had provided an oil facility in the outgoing fiscal year, which expired in April 2026. Pakistan had requested the resumption of the oil facility, but the government has not made any projection in the budget documents. It is relevant to mention here that Saudi Arabia increased its deposits with the SBP, and now $8 billion are lying with the central bank.
Pakistan has projected foreign loans of $400.42 million from bilateral donors, including $97.64 million from China, $50 million from Denmark, $94 million from France, $10.89 million from Germany, $0.89 million from Italy, $15.9 million from Japan, $29.224 million from Korea, $20.6 million from Kuwait, $5.32 million from Oman, $47.18 million from Saudi Arabia, $23.889 million from the USA and $4.483 million in the shape of block allocation in the fiscal year 2026-27.
The government has projected securing foreign loans of $4.866 billion from multilateral creditors in the budget for 2026-27. The ADB is projected to provide $1.68 billion, $86.337 million from the AIIB, $17.669 million from the EIB, $412 million from the World Bank’s IBRD loan, $1.43 billion from the WB’s IDA loan, $39.75 million from IFAD, $186.64 million from the Islamic Development Bank, $1 billion from IsDB (short-term), $8.76 million from the OPEC Fund and $0.172 million from the UN.
The government will secure $2.35 billion from foreign commercial loans in the budget for 2026-27. The government has projected $1.122 billion in the shape of Naya Pakistan Certificates in the budget for 2026-27.
The document shows that total bilateral deposits of $12 billion were lying with the SBP without sharing any further details. However, according to sources, out of $12 billion deposits, there are $8 billion from KSA and $4 billion from China.
The IMF is projected to provide $530 million in 2026-27 for climate finance under the Resilience and Sustainability Facility, which is booked as part of budgetary support. However, the IMF’s disbursed amount under the $7 billion Extended Fund Facility is meant to provide balance of payment support, which is booked on the balance sheet of the SBP.
