Pakistan secured $517.65 million in external financing during April 2025, reflecting a 6.8% decline from the previous month but marking a 118.2% increase compared to April last year, according to the latest report released by the Economic Affairs Division (EAD).
Despite the improvement year-on-year, the cumulative inflow over the first ten months of FY25 stood at just $5.72 billion—less than one-third of the $19.39 billion the government had budgeted for the full fiscal year. This follows a similar shortfall last year, when actual inflows reached only $9.81 billion against a target of $17.62 billion.
Of the external financing received in April, $343.68 million came in the form of loans and $142.12 million as grants from various sources. The financing package included $366.24 million in non-project aid disbursed as budgetary support to help restructure the economy. Over 10MFY25, total non-project aid reached $3.45 billion.
Disbursements from bilateral and multilateral development partners in April totalled $162.21 million, bringing the ten-month total to $3.35 billion. Multilateral sources contributed nearly $151.48 million during the month and $2.98 billion cumulatively, while bilateral sources disbursed $10.73 million in April and $371.59 million over the 10-month period.
Commercial borrowing during April amounted to $154.95 million, all raised through the Naya Pakistan Certificate. Total commercial borrowing in 10MFY25 stood at $1.61 billion. However, the government failed to raise any funds through foreign commercial banks, falling significantly short of the $3.78 billion target set in the annual budget for this category.
The overall external financing target for FY25 includes $5.05 billion from multilateral and bilateral sources, $1 billion from international bonds, $3.78 billion from commercial banks, $5 billion in time deposits from Saudi Arabia, and $4 billion in safe deposits from China.
Despite the moderate inflows providing some support to foreign exchange reserves, the shortfall relative to budgeted expectations underscores the continued challenges Pakistan faces in securing adequate external financing amid efforts to stabilise its economy.
