Pakistan received $1.38 billion in external financial assistance during the first two months of the current fiscal year, almost double the amount borrowed in the same period last year.
The Economic Affairs Division (EAD) revealed in its latest report that inflows included loans, grants, and support from Saudi Arabia’s oil facility.
Borrowing nearly doubles year-on-year
According to the EAD, Pakistan borrowed Rs391 billion between July and August 2025. This figure is double the Rs199 billion borrowed during the same period of the last fiscal year.
In dollar terms, the country secured $1.34 billion in loans and $32.4 million in grants during the two months. Of this, $910 million was categorized as non-project aid, while $460 million was disbursed for project-based financing.
Saudi Arabia provides oil facility support
The report highlighted that in August alone, Pakistan received $100 million from Saudi Arabia under its oil facility loan arrangement. This financial cushion comes as part of broader external support that is expected to stabilize Pakistan’s energy sector and foreign reserves.
Total borrowing plans for fiscal year
Looking ahead, the EAD estimates that Pakistan will secure about $20 billion in external loans and grants during the ongoing fiscal year. Of this, $6.4 billion will come through bilateral and multilateral agreements.
The government has decided to issue only $400 million worth of bonds during this fiscal year. In addition, Naya Pakistan Certificates worth $168.3 million have already been issued.
Breakdown of monthly borrowing
The report further noted that Pakistan borrowed Rs198 billion in July and Rs192 billion in August, reflecting consistent inflows. Grants worth $32.4 million were also recorded during the two months, supplementing loan-based financing.
