Pakistan’s borrowing increased by 18% in the first eight months of FY2025-26, reaching $6.86 billion, thanks to help from the IMF, World Bank, China, and Saudi Arabia amidst persistent economic constraints.
ISLAMABAD (Web Desk) – Pakistan’s overall borrowing climbed by 18% during the first eight months (July-February) of the current fiscal year 2025-26, with the government securing additional loans totaling $6.86 billion from external sources.
According to official figures, the government received around $5.86 billion in foreign financial assistance during this time, which included loans and grants. Loans accounted for around $5.76 billion of the total new borrowing, while grants made for $92.2 million.
The entire borrowing volume increased further with the payment of a $1 billion tranche from the International Monetary Fund, putting it close to $6.76 billion.
In local currency terms, the government borrowed almost Rs1,904 billion, averaging Rs7.86 billion in new debt every day.
Saudi Arabia granted nearly $3 billion in loans to bilateral partners, as well as extra financial help, such as deferred oil payments. China rolled over $1 billion and extended credit.
Multilateral institutions also made substantial contributions. The World Bank extended $722 million, and the Asian Development Bank supplied $660 million. The Islamic Development Bank provided around $480 million in short-term finance, with additional help coming from other international and bilateral sources.
Furthermore, Pakistan raised $1.76 billion through Naya Pakistan Certificates, with more than $1 billion secured from friendly countries.
Officials say the increased borrowing reflects rising fiscal demands and external financial constraints as the government deals with economic issues and maintains foreign exchange reserves.
