Pakistan secures $1.81 billion in foreign loans in Q1 2026

Pakistan received $1.81 billion in foreign loans during the first quarter (July–September) of the current fiscal year, according to data released by the Economic Affairs Department (EAD).

The report showed that the country did not secure commercial loans during this period. Total foreign inflows were higher than the $1.3 billion recorded in the same period last fiscal year, The News reported on Friday.

The government projected to get $19.92 billion in the form of foreign loans and grants in the current fiscal year, of which $9 billion was in the form of deposits from the Kingdom of Saudi Arabia and SAFE deposits from China. It is expected that these deposits will be carried over to the current financial year. Thus, the remaining foreign loans amounting to 10.9 billion dollars will be disbursed.

The government has received $334.8 million in the form of foreign loans from bilateral partners in the first quarter of the current fiscal year.

The Kingdom of Saudi Arabia disbursed $300 million in the first quarter on behalf of the Saudi Oil Facility, while China disbursed $9.75 million, France $8.5 million, Germany $3.03 million, Japan $6.16 million, Korea $4.21 million, Kuwait $0.3 million, Saudi Arabia $2.59 million dollars and the US $2.59 million and the US.

Multilateral creditors disbursed $939.28 million in the first three months of the current financial year. The World Bank remained the largest multilateral creditor in the form of IDA and IBRD lending. PT disbursed $287.32 million in the form of an IDA loan, while $144.94 million was disbursed as an IBRD loan.

The Islamic Development Bank (IsDB), for short-term lending, disbursed $311.43 million in the first three months of CFY26. It also disbursed $50 million in project financing in the first quarter of the current fiscal year.

The Asian Development Bank disbursed $116.96 million during the period, while the Asian Infrastructure Investment Bank provided loans of $20.7 million.

IFAD has disbursed $7.45 million in the first three months of the current financial year. Due to Naya Pakistan certificates, the government reached $541.57 million in the first quarter of the current financial year.

So far, the government has not issued any international bonds, raised any commercial financing and no loans for fiscal support.