The government has yet to secure any of the budgeted $9 billion in time deposits for the first four months of the current fiscal year (July-October 2024-25), compared to $3 billion materialized during the same period last year, according to data from the Economic Affairs Division (EAD).
For FY25, the government had projected $9 billion in time deposits, including $5 billion from Saudi Arabia and $4 billion from China’s SAFE deposit. However, no inflows under this head have been recorded so far.Â
Last year, $3 billion was budgeted in time deposits, including $2 billion from Saudi Arabia and $1 billion from the UAE, all of which were received within the first month.
The EAD data also indicates a sluggish performance in foreign commercial bank borrowings. Against a budgeted $3.779 billion for FY25, the country has secured only $200 million, disbursed in September. No borrowing was recorded in July, August, or October.
The government’s total external financing target for FY25 is $19.393 billion, comprising $19.216 billion in loans and $176.29 million in grants. This does not include any contributions from the International Monetary Fund (IMF).
A recent IMF report noted that Pakistan’s authorities have expressed confidence in securing adequate financing from international partners to support the economic reform program.Â
However, current projections highlight residual financing needs of $5 billion over the IMF program period, even after incorporating financial commitments, rollovers, and program contributions.
Authorities have indicated commitments from bilateral and multilateral partners, including China, Saudi Arabia, the Asian Development Bank, and the Islamic Development Bank. They also emphasized ongoing efforts to secure rollovers of short-term claims and lengthen maturities to ease financing pressures during the program’s duration.
