Pakistan secured $1.70 billion in external loans during the first two months of fiscal year 2027, up 23.6% from the same period a year earlier, as the government relied on multilateral lenders, commercial banks and its Naya Pakistan Certificates to finance development and budgetary needs, according to data released by the Economic Affairs Division.
Islamabad received $1.37 billion in external financing during July-August of the previous fiscal year, the Economic Affairs Division said in its monthly external assistance report. The $1.70 billion borrowed during July-August 2026 was equivalent to about Rs. 476 billion, compared with Rs. 391 billion during the corresponding period of the previous fiscal year, based on the report’s figures.
Multilateral institutions provided about $590.96 million during the first two months of the current fiscal year, according to the data. The Islamic Development Bank, including short-term financing, provided $191.26 million, while the World Bank’s International Development Association and International Bank for Reconstruction and Development provided $238.49 million and $47.54 million, respectively.
The Asian Development Bank provided $95.76 million, while the Asian Infrastructure Investment Bank contributed $13.35 million. Other multilateral financing included $2.05 million from the International Fund for Agricultural Development and $0.76 million from the OPEC Fund.
Overall, bilateral and multilateral sources provided $626.19 million during July-August, according to the report.
China remains major bilateral source
China provided $146.62 million in guaranteed financing during the two-month period, making it the largest bilateral source listed in the report. Other bilateral lenders provided a combined $35.23 million. Germany provided $12.87 million, including $10.73 million in project-related financing and other assistance, while Saudi Arabia provided $8.90 million.
France provided $8.52 million, Japan $1.71 million, Denmark $3.15 million and the United States $80,000 during the period. The Economic Affairs Division’s data show bilateral lenders provided $161.85 million when guaranteed Chinese financing is included.
Pakistan also raised $300 million from commercial banks during the first two months through United Bank Ltd.’s Dubai operation, according to the report. Naya Pakistan Certificates generated $629.76 million during July-August, comprising $182.24 million through conventional certificates and $447.52 million through Islamic certificates.
The report also shows that Pakistan received $939.53 million in August alone, taking cumulative external financing during July-August to $1.70 billion.
Of the total financing, $484.50 million was obtained for various projects during the first two months, while about $1.21 billion was classified as non-project financing, according to the government data. The figures highlight Pakistan’s continued reliance on external financing during the early months of the fiscal year, with development-linked multilateral loans supplemented by commercial borrowing and funds raised through Naya Pakistan Certificates.