Pakistan's debt rises 18pc as new borrowing reaches $6.86bn
Business
Pakistan’s borrowing surged 18% in the first eight months of FY2025–26, reaching $6.86 billion, driven by support from the IMF, World Bank, China, and Saudi Arabia amid ongoing economic pressures.
ISLAMABAD (Web Desk) – Pakistan’s total borrowing increased by 18 per cent during the first eight months (July–February) of the current fiscal year 2025–26, with the government securing new loans worth $6.86 billion from external sources.
According to official data, the country received about $5.86 billion in external financial assistance during this period, including loans and grants. Of the total new borrowing, approximately $5.76 billion comprised loans, while $92.2 million came in the form of grants.
The overall borrowing volume rose further after the disbursement of a $1 billion tranche from the International Monetary Fund, bringing the total close to $6.76 billion.
In local currency terms, the government borrowed around Rs1,904 billion, averaging approximately Rs7.86 billion in new debt on a daily basis.
Among bilateral partners, Saudi Arabia rolled over $3 billion in loans and also extended additional financial support, including deferred oil payments. China rolled over $1 billion and provided further financing.
Multilateral institutions also contributed significantly. The World Bank extended $722 million, while the Asian Development Bank provided $660 million. The Islamic Development Bank offered over $480 million in short-term financing, and additional support came through various international and bilateral channels.
Additionally, Pakistan raised $1.76 billion through Naya Pakistan Certificates, while more than $1 billion was secured from friendly countries.
Officials say the increased borrowing reflects growing fiscal needs and external financing pressures as the government manages economic challenges and maintains foreign exchange reserves.
