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Pakistan Lifts Q1 Domestic Borrowing to Rs515 Billion as Foreign Inflows Reach $1.81 Billion

Officials signal reliance on pledged rollovers to cover a large external financing need.

Overview

  • Ministry of Economic Affairs data show domestic borrowing rose 41% year-on-year in Q1, with monthly draws of Rs198 billion in July, Rs192 billion in August and Rs124 billion in September.
  • Foreign inflows were led by multilateral lenders at $939.28 million, including World Bank IDA $287.32 million and IBRD $144.94 million, with IsDB $311.43 million short term and ADB $116.96 million.
  • Bilateral disbursements totaled $334.8 million in Q1, including $300 million under the Saudi Oil Facility, alongside smaller sums from China, Japan, Germany and others.
  • The government raised $541.57 million through Naya Pakistan Certificates in Q1, including $177 million in September, while no commercial loans or international bonds were executed.
  • For FY2025–26, authorities project external financing needs of about $19.92 billion within total borrowing above $25 billion, anchored by planned $9 billion in deposit rollovers and limited bond issuance including $250 million in Panda Bonds.