Pakistan’s external financing needs projected at $21.2 billion, 4.6% of GDP, for FY27: IMF

The International Monetary Fund (IMF) has projected Pakistan’s gross external financing requirements at $21.197 billion, equivalent to 4.6% of GDP, for the fiscal year 2026-27.

According to the IMF’s report on the third review under the Extended Fund Facility and second review under the Resilience and Sustainability Facility, Pakistan’s financing needs are projected to increase further to $29.884 billion in FY2027-28.

The Fund estimated Pakistan’s gross external financing requirements for the outgoing FY2025-26 at $18.814 billion, or 4.2% of GDP.

The IMF said Pakistan’s capacity to repay the Fund remained adequate but continued to depend heavily on timely external financing and sustained policy implementation.

According to the report, the IMF’s exposure to Pakistan is expected to peak at SDR9.775 billion in September 2027, equivalent to 481% of quota and around 64% of projected gross reserves.

The Fund stated that the programme remained fully financed, with firm commitments available for the next 12 months and positive financing prospects for the remaining programme period.

The report said the planned $250 million Panda bond issuance was expected to proceed during the fourth quarter of FY2026.

According to the IMF, repayment of $3.5 billion deposits to one official bilateral creditor had been financed through fresh $3 billion deposits from another bilateral partner and proceeds from Pakistan’s three-year $750 million Eurobond issued on April 16.

The authorities also secured an agreement to extend the maturity of $5 billion in official bilateral deposits from one year to three years, while other bilateral deposits continued to be rolled over as expected.

The IMF noted that commercial financing facilities could also be utilised if additional external financing requirements emerged.

Pakistani authorities informed the Fund that financing support from bilateral and multilateral partners remained in place to support economic reforms and external reserve rebuilding efforts.

The report added that bilateral partners had committed to continue rolling over short-term claims, including loans, swaps and deposits, throughout the duration of the IMF programme.