Pakistan secures over $593 million in external financing for September

ISLAMABAD: Pakistan received $593.91 million in external financing in September 2024 from various sources. This was 119.5 per cent higher than the amount secured in the previous month and 85.1 per cent more than in September 2023.

Pakistan in the first three months of FY25 raised $1.31 billion in external financing, which is way below the yearly target of $19.39 billion, as reported by the Economic Affairs Division (EAD).

Last year, the government aimed to secure $17.62 billion in foreign assistance but was only able to receive $9.81 billion by the end of the year.

Of the amount received in September, $574.98 million came in the form of loans, while $18.92 million was given as grants.

For the full fiscal year FY25, the government is targeting $19.39 billion, which includes $5.05 billion from multilateral and bilateral lenders, $1 billion from international bonds, $3.78 billion in foreign commercial loans, $5 billion in time deposits from Saudi Arabia, and $4 billion in safe deposits from China.

More than $278 million was disbursed by bilateral and multilateral development partners in September, bringing the total for the first quarter of FY25 to $733.25 million.

Over $189.97 million came from multilateral sources and $88.19 million from bilateral partners. In the first three months, multilateral sources provided $482.96 million, while bilateral partners contributed $250.29 million.

Pakistan borrowed $115.75 million in September from foreign commercial sources, making the total for 3MFY25 $374.79 million. This borrowing was done through Foreign Commercial Banks and the Naya Pakistan Certificate.

The government raised $200 million from foreign commercial banks, compared to the target of $3.78 billion.

The data also showed that $388.82 million of the loans received in September were for non-project aid, meant to support Pakistan’s economy through budgetary and program assistance. In total, non-project aid loans amounted to $662.67 million in the first quarter of FY25.

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