ISLAMABAD: With Chinese refinancing of commercial loan of $1.7 billion, Pakistan has fetched $16.2 billion in the shape of foreign loans during the last financial year ended on June 30, 2026.
However, Islamabad could not secure the desired target of $19.92 billion in shape of loans and grants in the fiscal year 2025-26, so it missed the target by $3.72 billion. However, in June 2026, the major chunk of disbursements of foreign loans was secured from the multilateral lending agencies, with the top lender Asian Development Bank (ADB) disbursed $953.74 million in the last month of 2025-26.
According to the official data of Economic Affairs Division for the fiscal year 2025-26, the government secured refinancing of $1.7 billion from China Development Bank (CDB) and $203.33 million from Standard Chartered Bank (SCB) London, so the Government of Pakistan obtained $1.903 billion as foreign commercial loans in this fiscal year. The government had envisaged to secure $3 billion commercial loans but this target was missed with a margin of $1.1 billion in 2025-26.
China provided a guarantee of $392 million in the last fiscal year 2025-26. Among the bilateral partners, the total disbursement stood at $1.355 billion in the fiscal year 2025-6 out of which the Kingdom of Saudi Arabia provided $1.01 billion, mainly in the shape of Saudi Oil Facility (SOF) on deferred payment to the tune of $100 million on a monthly basis till March 2026. However, Pakistan has made a fresh request to resume the Oil Facility for medium term but so far it is under consideration.
Among other bilateral partners, China provided $108 million, Denmark $90 million, France $71.68 million, Germany $13.35 million, Japan $26.69 million, Korea $9.49 million, Kuwait $26.06 million and USA $0.64 million.
The multilateral lenders have disbursed cumulatively to the tune of $5.03 billion in the fiscal year of 2024-25 out of which ADB has disbursed loans of $1.772 billion, AIIB $123.85 million, World Bank’s IBRD loan of $516 million and WB’s IDA loan of $1.5 billion, Islamic Development Bank $68.13 million, IDB (short term) loan of $1.01 billion, $IFAD loan of $25.5 million, OPEC Fund $0.11 million and UN $0.9 million.
From multilateral and bilateral creditors, Pakistan has received $6.39 billion in the fiscal year 2025-26.
Pakistan had also re-appeared on the radar screen of international investors after pause of several years and launched two international bonds of $1 billion, including $750 million of Eurobond and $250 million of Panda bond. The country attracted $3.049 billion as Naya Pakistan Certificate (NPC), including $930.8 million as conventional NPC and $2.118 billion as NPC Islamic. The IMF has disbursed $420 million for RSF (Climate Finance) in the fiscal year. The disbursement from the IMF on account of Extended Fund Facility (EFF) is deposited into the domain of State Bank of Pakistan (SBP). Pakistan also secured $3 billion Time Deposit from the Kingdom of Saudi Arabia (KSA).
When contacted, Adviser to Ministry of Finance Khurram Shahzad stated that the $15.764 billion represents the net inflow of foreign economic assistance received directly by the central government of Pakistan during the Jul-Jun 2025-26 fiscal period, rather than standard commercial bank deposits. This figure is calculated by combining $149.53 million in total central grants (non-repayable aid from bilateral countries, multilateral institutions, and the UN) with $15,615.39 million in total central loans and financing instruments. The loan portion comprises diverse funding streams, including institutional multilateral loans ($4.991 billion), Naya Pakistan Certificates ($2.118 billion), foreign commercial bank lines ($1.900 billion), international sovereign bonds ($1 billion), IMF funds ($420 million), bilateral nation debt ($1.25 billion), and a specific $3 billion central bank time deposit from the Saudi Fund for Development.
