Islamabad (Commerce Desk): Pakistan has recorded over an 18% increase in new external borrowings compared to the same period last fiscal year. Documents reveal that between July and February, the country received a total of $5.86 billion in external financial assistance, comprising $5.76 billion in new loans and $92.2 million in grants.
Compared to the same period last year, loans increased by $910 million, while the inclusion of a $1 billion IMF tranche raised the total to $6.76 billion.
According to the report, the government has secured approximately PKR 7.86 billion in new loans daily this fiscal year, equivalent to over PKR 1,904 billion.
The documents further indicate that Saudi Arabia rolled over $3 billion, China extended $1 billion in loans, and various international financial institutions provided $2.37 billion in the first eight months.
Under the New Pakistan Certificates, $1.76 billion in loans were secured, with the World Bank contributing $722 million and the Asian Development Bank (ADB) providing $660 million. The Islamic Development Bank extended over $480 million in short-term loans, while various friendly nations offered more than $1 billion in assistance.
Experts say this financial support is vital for Pakistan’s economic stability, but caution that careful policy measures are needed to manage the growing debt levels.
