Pakistan Foreign Loans Rise to $4.5bn in FY26 First Half
Pakistan foreign loans climbed to $4.5 billion during the first half of FY26. This figure covers the July to December period. As a result, inflows improved from $3.6 billion last year. The rise reflects stronger engagement with global partners. However, borrowing trends remain uneven across sources.
IMF Support and Missed Bond Plans
The total excludes a separate $1 billion IMF tranche under the Extended Fund Facility. That amount followed the second programme review. However, Pakistan did receive $209.5 million under the IMF’s sustainability facility.
At the same time, Pakistan did not issue any international bonds. Earlier, officials signaled a market return.
Therefore, investors now expect possible bond activity in 2026.
Strong Growth in Bilateral Financing
Bilateral inflows showed the sharpest growth. Pakistan secured $1.07 billion from bilateral partners. Last year, this figure stood near $312 million. Saudi Arabia provided the largest share through an oil facility worth $600 million. In addition, China-backed loans added over $255 million.
These facilities eased short-term external pressure. Several countries also supported development projects. For example, Denmark, France, Japan, and Germany contributed targeted financing. As a result, bilateral cooperation widened during FY26.
Multilateral Lenders Remain Key
Multilateral lenders disbursed nearly $2 billion. This amount slightly exceeded last year’s level. Therefore, development banks stayed central to funding needs. The Asian Development Bank led with $549 million.
Meanwhile, World Bank institutions added over $800 million combined.
Islamic finance lenders also played a steady role. Commercial borrowing, however, dropped sharply. Pakistan raised only $56 million from foreign commercial loans. Last year, this channel delivered $500 million.
Despite this drop, authorities aim to secure $3.1 billion this year. In parallel, diaspora investments stayed strong. Naya Pakistan Certificates attracted $1.2 billion, showing rising overseas confidence.
