Amid the ongoing selection process for appointing executive directors at two major multilateral lenders in Washington and Manila, Pakistan witnessed a notable rise in foreign loan inflows during the first month (July 2025) of the current fiscal year.
Islamabad secured $695 million in foreign loans in July, compared to $436.4 million in the same month last year, marking an increase of nearly 59%.
Out of the projected $19.7 billion in foreign loans and grants for FY26, Pakistan has so far received $694.53 million in July alone.
The World Bank emerged as the leading contributor, disbursing $157.69 million under IDA financing and another $52.56 million through IBRD in July 2025.
Additionally, Pakistan obtained $100 million from Saudi Arabia under the Saudi Oil Facility (SOF), against a total projected $1 billion allocation.
The SOF is expected to continue for the first ten months (July–April) of FY26 under the existing arrangement.
Meanwhile, the government has formed a high-powered ministerial committee, chaired by Deputy Prime Minister Ishaq Dar, to nominate Pakistan’s representatives for the posts of executive director at the World Bank and Asian Development Bank (ADB).
While the nomination for the WB slot has been finalized, the name for ADB’s ED is still under consideration.
However, the WB has disbursed its project financing from the first month of the current fiscal year.
According to the official data released by the Economic Affairs Division (EAD) on Monday, Islamabad has obtained $118.4 million as bilateral loans from friendly countries in July 2025 out of the total budgetary estimates of $1.277 billion for the CFY26.
Saudi Arabia has committed disbursement of $1 billion in shape of Saudi Oil Facility in FY26. China disbursed $6 million on July 25 against the budgetary estimates of $36 million.
France has disbursed $8.5 million, Germany $2.02 million, Japan $0.81 million, Korea $0.6 million, and the USA $0.19 million.
During July 2025, the total disbursement from multilateral creditors stood at $379.88 million.
The government has envisaged disbursement of $410 million from the IMF for the current fiscal year, which will be released on account of the Resilience Sustainability Facility (RSF) on the approved facility of $1.4 billion for 28 28-month period for climate finance, and it will be shown on the accounting system of the EAD and Ministry of Finance.
The IMF lending facility under the Extended Fund Facility (EFF) is not shown on the EAD and Ministry of Finance because it’s a balance of payment support (BoP) and incorporated on the balance sheet of the State Bank of Pakistan.
The multilateral loan and grants from the creditors stand at $379.88 million.
Among the prominent lenders were WB’s IDA $156.24 million, Islamic Development Bank $131.20 million, IBRD $42.91 million, and ADB $33.22 million.
The disbursement against the Naya Pakistan Certificate hovers around $196.22 million.
The total budget estimates of Naya Pakistan Certificates in FY26 stand at $609 million.
