{"id":468825,"date":"2025-12-24T12:12:21","date_gmt":"2025-12-24T12:12:21","guid":{"rendered":"https:\/\/www.europesays.com\/us\/468825\/"},"modified":"2025-12-24T12:12:21","modified_gmt":"2025-12-24T12:12:21","slug":"pakistan-economy-in-doldrums-inflow-of-foreign-loans-rises-in-first-5-months-borrowing-up-from-last-year","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/468825\/","title":{"rendered":"Pakistan economy in doldrums: Inflow of foreign loans rises in first 5 months; borrowing up from last year"},"content":{"rendered":"

\"PakistanRepresentative image (AI-generated) Pakistan saw a 14% rise in foreign loans and grants during the first five months of the current fiscal year (July\u2013November 2025), reaching $3.032 billion compared to $2.667 billion in the same period last year.Of the total inflows, foreign loans rose 46.2% to $2.521 billion, while grants fell by 43% to $54 million. In November alone, inflows amounted to $511 million, slightly higher than October\u2019s $471 million but 46% lower than November 2024.Earlier this month, the International Monetary Fund (IMF) approved a $1.2 billion disbursement. The current inflow figures do not yet include this latest IMF release, as reported by Dawn. <\/p>\n

IMF\u2019s New Conditions Expose Pakistan\u2019s Deep Economic Faultlines Amid $7 Billion Rescue Package<\/p>\n

The government has set a target of $19.9 billion in total foreign inflows for the current fiscal year, slightly higher than last year\u2019s $19.4 billion.The Ministry of Economic Affairs reported that of the $3.032 billion inflows, $1.157 billion was for project financing, while $1.875 billion comprised non-project inflows. Loans for budget support stood at $966 million, against an annual target of $13.5 billion. Additionally, Pakistan mobilised $500 million under the Saudi Oil facility at a planned rate of $100 million per month.<\/p>\n

Reliance on bilateral and multilateral lenders<\/p>\n

<\/strong>Inflows from bilateral and multilateral lenders totalled $2.066 billion in the first five months, compared to $1.73 billion in the same period last year, according to Dawn.Pakistan received $1.258 billion from multilateral lenders and $808 million from other bilateral lenders. Remittances from overseas Pakistanis also rose to $966 million, exceeding the annual target of $609 million.The IMF\u2019s support comes amid Pakistan\u2019s heavy reliance on external financing. The country narrowly avoided default in 2023 and is now among the Fund\u2019s largest borrowers after Argentina and Ukraine.<\/p>\n

Current IMF disbursement and support<\/p>\n

<\/strong>Earlier this month, the IMF approved a $1.2 billion disbursement under Pakistan\u2019s ongoing Extended Fund Facility and Resilience and Sustainability Facility programmes.This latest move lifts Pakistan\u2019s total inflows from the IMF to roughly $3.3 billion and will be reflected in official accounts in the coming weeks.IMF officials have highlighted that Pakistan\u2019s policy implementation has remained broadly consistent with programme goals, even after the recent monsoon floods that killed more than 1,000 people.The Fund observed that fiscal discipline, including maintaining a primary surplus of 1.3% of GDP in FY25, helped preserve macroeconomic stability. Gross reserves reached $14.5 billion at the end of FY25, up from $9.4 billion a year earlier and are expected to expand further in FY26.The Fund also stressed that Pakistan\u2019s ongoing reform measures, including tax policy adjustments, energy sector restructuring and governance improvements, are critical to maintaining financial stability and supporting medium-term growth.<\/p>\n

IMF imposes new conditions<\/p>\n

As part of ongoing support, the IMF has imposed 11 new conditions on Pakistan, bringing the total to 64 over 18 months. These measures address governance flaws, corruption, tax reforms, the power sector and structural inefficiencies. Key directives include:<\/p>\n