In the first two months of the fiscal year 2024-25 (FY25), Pakistan borrowed $714.74 million from various financing sources, marking a significant decrease from the $3.206 billion borrowed during the same period in the previous fiscal year, according to data released by the Economic Affairs Division (EAD).
The government had set ambitious budget estimates for FY25, including $9 billion in time deposits—$5 billion from Saudi Arabia and $4 billion from China. However, no funds were received under this category in July and August. Notably, there was no mention of financial assistance from the United Arab Emirates (UAE).
For FY25, the government budgeted a total of $19.393 billion from multiple financing sources, comprising $19.216 billion in loans and $176.29 million in grants. These figures do not account for any contributions from the International Monetary Fund (IMF).
The data also highlighted that the government anticipated $3.779 billion from foreign commercial banks for FY25, yet no funds were received in the first two months. Similarly, the government planned to raise $1 billion through bond issuance, but no bonds were issued during this period.
In August 2024, Pakistan received $270.53 million from various sources. The “Naya Pakistan Certificate” contributed $259.04 million during the first two months, with $131.35 million received in August alone.
From July to August 2024, the country received $292.99 million from multilateral sources and $162.70 million from bilateral sources. Non-project aid amounted to $273.12 million, including $14.07 million for budgetary support, while project aid totaled $441.62 million.
The Asian Development Bank (ADB) disbursed $96.20 million, falling short of the budgeted $1.651 billion for FY25. The International Development Association (IDA) provided $147.86 million against a budget of $1.525 billion, and the International Bank for Reconstruction and Development (IBRD) disbursed $28.88 million against a budget of $550.22 million. The Islamic Development Bank (IsDB) did not disburse any funds, despite a $500 million budget for FY25. The Asian Infrastructure Investment Bank (AIIB) and the International Fund for Agricultural Development (IFAD) disbursed $8.73 million and $9.59 million, respectively, against their budgeted amounts.
China disbursed $96.76 million in July, but no funds were received in August. The government has budgeted $134.18 million from China for FY25. Saudi Arabia provided $2.69 million in July, with no additional funds in August, against a budget of $146.54 million for the year. Meanwhile, the United States exceeded its budgeted amount, disbursing $30.94 million in the first two months against a budget of $20.87 million for FY25.
