Pakistan’s external financing surges in April after USD 3 billion Saudi deposit

Pakistan secured USD 4.47 billion in external financing in April 2026, sharply higher than the previous month, mainly due to a USD 3 billion Saudi Arabian time deposit that boosted the country’s foreign inflows, according to the latest data released by the Economic Affairs Division.

The monthly report showed Pakistan obtained USD 11.07 billion in external financing during the first 10 months of fiscal year 2025-26 (July-April), compared with USD 6.086 billion during the same period a year earlier, according to data posted on the division’s website.

Disbursements from bilateral and multilateral development partners stood at USD 395.63 million in April and USD 4.15 billion cumulatively during the July-April period.

Multilateral lenders accounted for USD 292.23 million in April disbursements and USD 2.88 billion during the first 10 months of the fiscal year, while bilateral partners contributed USD 103.39 million in April and USD 1.27 billion cumulatively.

The International Development Association emerged as the largest multilateral contributor in April, disbursing USD 206.34 million and taking cumulative disbursements for July-April to USD 1.04 billion.

The Asian Development Bank disbursed USD 35.28 million in April, bringing its cumulative lending during the period to USD 762.28 million, reflecting continued support for infrastructure and development projects.

The International Bank for Reconstruction and Development provided USD 41.17 million in April, taking cumulative disbursements to USD 417.60 million, mainly for power sector and urban development initiatives.

The Asian Infrastructure Investment Bank disbursed USD 9.44 million during the month, with cumulative financing reaching USD 98.30 million.

Among bilateral partners, Saudi Arabia remained the largest contributor, disbursing USD 100.68 million in April and USD 1.01 billion during July-April.

France disbursed USD 2.27 million in April, taking cumulative financing to USD 49.99 million, while Germany contributed USD 0.44 million during the month, bringing its cumulative total to USD 12.59 million.

Japan and China recorded no fresh bilateral loan disbursements in April. Japan’s cumulative financing remained unchanged at USD 23.27 million, while China’s bilateral cumulative total stood at USD 72.28 million.

China’s guaranteed loan facility also recorded no new disbursement in April, leaving cumulative inflows at USD 392.82 million during the July-April period.

Foreign commercial borrowing through the Naya Pakistan Certificate scheme amounted to USD 330.49 million in April, including USD 87.23 million under the conventional facility and USD 243.26 million under the Islamic facility. Total inflows through the scheme reached USD 2.37 billion during July-April.

The report said a USD 3 billion Saudi Arabian time deposit was recorded in April, accounting for the bulk of the month’s financing inflows and significantly lifting the headline figure.

Nonproject aid during April stood at USD 4.20 billion, including USD 4.08 billion in budgetary support and USD 100 million under the Saudi Fund for Development oil facility, highlighting Pakistan’s continued dependence on external program financing to support macroeconomic stability.

An economist said the April financing data reflected “continued dependence on friendly countries and short-term deposits rather than sustainable long-term capital inflows.”

He said the Saudi time deposit had strengthened Pakistan’s foreign exchange reserves and eased near-term external financing pressures, but added that durable stability would require stronger exports, higher foreign direct investment and continued fiscal reforms.