In a strategic move to ensure economic stability, the Government of Pakistan is planning to secure approximately $25 billion in external loans for the next financial year, according to credible sources within the Ministry of Finance. The financing plan is a combination of loan rollovers, fresh borrowing, and financial commitments from international partners and financial institutions.
Breakdown of the Loan Plan:
1. Loan Rollovers from Friendly Nations – $12 Billion
A major portion of the expected inflow—$12 billion—is projected to come from rollovers of existing loans from Pakistan’s key allies, namely:
- Saudi Arabia
- China
- United Arab Emirates (UAE)
These rollovers are expected to ease pressure on the country’s external payment obligations and provide breathing room for fiscal management.
2. Project Financing – $4.6 Billion
The government is projecting $4.6 billion in project financing for development initiatives during the next fiscal year. This will be critical for infrastructure, energy, and public sector development programs aimed at revitalizing the economy.
3. Refinancing of Chinese Loans – $3.2 Billion
Pakistan plans to refinance $3.2 billion in commercial loans from China, ensuring that previous borrowing terms are managed effectively without straining the national reserves.
4. New Commercial Loan from China – $1 Billion
In addition to refinancing, the government also intends to secure a new commercial loan worth $1 billion from China, reflecting the deepening economic cooperation between the two countries.
5. IMF Disbursements – $2 Billion
As part of its ongoing engagement with the International Monetary Fund (IMF), Pakistan expects to receive a $2 billion installment in the next fiscal year. The Ministry of Finance will oversee the disbursement process of this critical funding, which is vital for maintaining foreign exchange reserves and investor confidence.
6. Saudi Oil Facility and Other Deferred Payments – $2 Billion
Pakistan has also allocated an estimated $2 billion for deferred payment arrangements, such as the Saudi oil facility and other similar agreements. These late payment obligations are being carefully managed to avoid disruptions in essential imports.
7. UAE Safe Deposit – To Be Rolled Over
The UAE Safe Deposit, another key component of Pakistan’s foreign exchange buffer, will be rolled over by the State Bank of Pakistan (SBP). This will help sustain reserve levels without requiring immediate repayment.
8. Role of the Economic Affairs Division – $19.5 to $20 Billion
The Economic Affairs Division (EAD) has been tasked with obtaining approximately $19.5 to $20 billion in external financing. This includes bilateral and multilateral sources, grants, and concessional loans aimed at supporting budgetary and development needs.
This ambitious loan plan reflects the government’s urgent need to stabilize the economy, manage its external debt, and maintain foreign exchange reserves amid global economic pressures. With careful coordination among the Ministry of Finance, State Bank of Pakistan, and the Economic Affairs Division, the government is aiming to bridge fiscal gaps and ensure macroeconomic resilience in the upcoming fiscal year.
