Pakistan Secures $12.4B in FY25 Foreign Loans

Islamabad, July 23, 2025, 08:59 PM PKT — Pakistan has secured a monumental $12.4 billion in foreign loans during FY2025, surpassing its budgetary target by $2.6 billion, excluding $9 billion in rollovers from Saudi Arabia (via Time Deposits and SAFE) and marking a jump from $9.8 billion in FY24, per official data. The surge is fueled by the resumption of the Saudi Oil Facility (SOF), $200 million in the last two months, increased commercial bank loans at $4.297 billion, and boosts from the Asian Development Bank (ADB) at $2.13 billion, Naya Pakistan Certificates at $1.9 billion (topping the $460 million target), and AIIB at $110.37 million. Yet, World Bank disbursements lagged—International Bank for Reconstruction and Development (IBRD) at $392 million (below $550.2 million) and International Development Association (IDA) at $1.37 billion (under $1.525 billion)—while the $2.1 billion IMF loan is excluded.

Multilateral creditors delivered $4.838 billion, exceeding the $4.577 billion budget, and bilateral loans hit $600 million, outpacing the $471 million target, with China at $483 million, Saudi Arabia at $221.27 million (versus $71 million expected). However, international bond issuance flopped, missing the $1 billion goal due to rising interest rates. The Economic Affairs Division (EAD) offers no details on rollover terms. Web context shows loan dependency patterns, while posts found on X reflect concern—some see short-term gains, others warn of debt burdens. Critically, the narrative of “financial support” may mask growing vulnerability—web data hints at past shortfalls, and X sentiment suggests distrust in sustainable growth, pointing to escalating risks.