Pakistan Secures $1.3 Billion in Foreign Loans Amid IMF Support

ISLAMABAD: In a crucial development for its economy, Pakistan has successfully secured $1.3 billion in foreign loans from various multilateral and bilateral creditors during the first quarter of the fiscal year 2024-25 (July-September). This amount does not include a significant $1 billion tranche from the International Monetary Fund (IMF).

During this period, Pakistan has resumed commercial financing, managing to secure $200 million. Despite plans, the country was unable to launch any international bonds, which were projected to generate $1 billion for the fiscal year. However, through the Naya Pakistan Certificate initiative, Pakistan raised $374 million in the first three months.

Against a target of $19.4 billion in foreign loans for the fiscal year, the initial $1.3 billion secured falls short of expectations. Notably, the IMF has already provided $1 billion under the $7 billion Extended Fund Facility, bringing the total foreign loans to approximately $2.3 billion for the first quarter when including this support. This IMF assistance is primarily aimed at balancing the country’s payments, as reflected in the State Bank of Pakistan's accounts.

According to official data from the Economic Affairs Division, the breakdown of the $1.3 billion in foreign loans includes about $492.96 million from multilateral lenders such as the World Bank, Asian Development Bank (ADB), Islamic Development Bank (IsDB), and Asian Infrastructure Investment Bank (AIIB). Additionally, Pakistan received $250.29 million from bilateral creditors during this quarter.

As the nation navigates these financial challenges, securing foreign loans is crucial for stabilizing its economy and meeting international obligations.