Pakistan has secured $6 billion in foreign loans during the first eight months (July-February) of the current fiscal year 2024-25, as reported by The News. Additionally, the Saudi Oil Facility (SOF), valued at $1.2 billion, is set to resume this month, providing $100 million per month over the next year.

Breakdown of Foreign Loans

The $6 billion in foreign inflows comprises various sources:

  • International Monetary Fund (IMF): $1 billion under the Extended Fund Facility (EFF) arrangement.
  • Multilateral Creditors: $2.49 billion, including contributions from the Asian Development Bank (ADB) and the World Bank.
  • Bilateral Creditors: $334.96 million, with notable contributions from France, China, and the United States.
  • Commercial Loans: $500 million.
  • Naya Pakistan Certificates: $1.3 billion attracted through this investment initiative.

Saudi Oil Facility (SOF) Details

The SOF is expected to commence in March 2025, providing $100 million per month over a 12-month period, totaling $1.2 billion. This facility aims to alleviate Pakistan’s financial burden by allowing deferred payments for oil imports, thereby supporting the country’s balance of payments position.

Future Financial Outlook

To meet the total foreign loan target of $19.4 billion for the fiscal year, Pakistan will need to secure an additional $4.4 billion in the remaining four months (March to June 2025). The government plans to accelerate disbursements from multilateral creditors and explore other financial avenues to achieve this goal.

Conclusion

The acquisition of $6 billion in foreign loans and the resumption of the $1.2 billion Saudi Oil Facility reflect Pakistan’s ongoing efforts to stabilize its economy and manage external financial obligations. These developments are expected to provide significant support to the country’s economic framework in the coming months.