Pakistan eyes additional $500 million in project financing

Pakistan is poised to receive a significant financial boost, with its Economic Affairs Division (EAD) in advanced talks with multilateral institutions to secure an additional $500 million in project financing for the current fiscal year.

The EAD is negotiating with prominent institutions, including the Asian Development Bank (ADB), World Bank, and Islamic Development Bank (IDB), to finalize the additional financing. According to sources, the revised estimate for project financing for the current fiscal year stands at a substantial $5.6 billion.

A significant portion of the additional financing — over $300 million — is expected to come from the ADB, earmarked for social protection and development projects.

Furthermore, Pakistan is anticipated to receive an additional $100 million from the ADB by the end of December. The World Bank is also expected to provide approximately $150 million in additional financing for the Dasu Dam and transmission line project.

It's worth noting that Pakistan government central debt stands at PKR 69.1 trillion, while foreign reserves are at $16.6 billion, where the central bank's reserves are $12.1 billion. The Ministry of Finance has tasked the EAD with securing additional financing from multilateral institutions to alleviate pressure on payments.

The budgeted estimate for project financing ranges from $5.1-5.2 billion. This strategic move is expected to enhance Pakistan's economic resilience and support the government's development agenda.