Pakistan receives $555m external financing in March

April 21, 2025 (MLN): Pakistan secured external financing worth $555.2 million in March 2025 from multiple financing sources, 52.5% higher than last month and 154% higher than the same month last year.

Cumulatively, in 9MFY25, the country only managed to secure $5.2 billion in external financing against the annual budget estimates of $19.39bn for FY25, the latest monthly report by the Economic Affairs Division (EAD) showed.

Last year, the government had budgeted $17.62bn in foreign assistance but could only materialise $9.81 throughout the fiscal year.

The total amount comprised $343.68m in loans and the remaining $15.39m in grants from various sources.

The full-year $19.39bn target for the current fiscal year includes $5.05bn from multilateral and bilateral lenders, $1bn in international bonds, $3.78bn foreign commercial loans, $5bn time deposit from Saudi Arabia, and $4bn safe deposit from China.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners totaled $359.07m in March and $3.19bn during 9MFY25.

Although these inflows helped to improve foreign exchange reserves, they fell significantly short of the government's budget estimates.

Foreign assistance obtained through multilateral sources totaled nearly $336.71m in March and $2.83bn in 9MFY25.

While financing through bilateral development partners stood at $22.36m in March and $358.49m in 9MFY25.

The foreign commercial borrowing amounted to $140.46m in March 2025 and $1.46bn in 9MFY25. This was obtained through Naya Pakistan Certificate.

Meanwhile, the government did not manage to secure any amount through foreign commercial banks in 9MFY25 against the government's budget estimates of $3.78bn for fiscal year 2024-25.

To note, out of the total financing amount in March, the government obtained a $319.15m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan's economy. Cumulatively in 9MFY25, loans for non-project aid amounted to $3.07bn.

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