Pakistan Secures $944 Million in External Financing in November
In November 2024, Pakistan successfully obtained external financing amounting to $944.2 million from various sources. This amount is a significant 127.6% increase compared to the previous month, and a 127.0% rise from November of the previous year.
During the first five months of the fiscal year 2025 (5MFY25), the country gathered a total of $2.67 billion in external financing. This amount is part of the annual budget projection which stands at $19.39 billion for FY25, as reported recently by the Economic Affairs Division (EAD).
In the last fiscal year, the government’s budget for foreign assistance was $17.62 billion, yet only $9.81 billion was realized by the end of the fiscal year. For the current fiscal cycle, the breakdown of the $19.39 billion target includes specific allocations: $5.05 billion from multilateral and bilateral lenders, $1 billion through international bonds, $3.78 billion in foreign commercial loans, a $5 billion time deposit from Saudi Arabia, and a $4 billion safe deposit from China.
Delving into the details from the EAD, in November, disbursements from bilateral and multilateral development partners reached $751.45 million, culminating in a total of $1.73 billion during 5MFY25. Though these inflows improved foreign exchange reserves, they were significantly lower than the government’s budget targets.
Multilateral sources contributed almost $743.33 million in November and $1.46 billion in the period of 5MFY25. Financing from bilateral development partners was $8.12 million in November, and a cumulative $268.8 million in 5MFY25.
Foreign commercial borrowing recorded $192.75 million in November 2024 and $734.9 million in 5MFY25. This borrowing was facilitated through the Naya Pakistan Certificate. However, the government did not secure any financing from foreign commercial banks in 5MFY25, even though the budget forecasted $3.78 billion for fiscal year 2024-25.
Significantly, out of the total financing in November, a $725.27 million loan was acquired as non-project aid. This was offered as program/budgetary support assistance, aimed at restructuring Pakistan’s economy. Loans designed for non-project aid totaled $1.6 billion in the first five months of FY25.
The above figures capture an insightful picture of Pakistan’s financial endeavors abroad during November, spotlighting the intricate balance of achieving economic restructuring and meeting budgetary expectations. As the fiscal year progresses, further analysis will determine if Pakistan achieves its projected external financing targets.
