Pakistan secures $700m in foreign loans, grants

ISLAMABAD (Mudassar Ali Rana) – The federal government secured $700 million in foreign loans in July 2025, up 59% from $436.4m in the same month last year, marking a sharp rise in external borrowing.

The government on Tuesday decided to borrow $3.10 billion from foreign commercial banks during the current fiscal year.

According to the Ministry of Economic Affairs, a total of $6.40 billion will be acquired under project financing.

During the month of July, the government secured $700 million in loans, of which $498.3 million came through bilateral and multilateral agreements.

The report further states that New Pakistan Certificates worth $196.2 million were issued last month.

The government also plans to issue bonds worth only $400 million in the current fiscal year.

As per the official report, $100 million was received in July under the Saudi Oil Facility, and the government expects to receive a total of $1 billion under this facility during the fiscal year.

Compared to last year, there has been an increase of approximately $260 million in external funding on an annual basis as of July 2025.