Overview

• Foreign borrowing reached a record $26.7 billion in fiscal year 2024–25, slightly above the previous year’s total.
• Nearly half of the loans were rollovers of existing debt and just $3.4 billion, or 13%, was allocated to project financing.
• Gross foreign exchange reserves stood at $14.5 billion at end-June, propped up predominantly by debt refinancings.
• Multilateral and bilateral support included $2.1 billion from the IMF and $12.7 billion in deposit rollovers from Saudi Arabia, China, the UAE and Kuwait.
• Junk credit ratings and gross financing needs above sustainable thresholds block market access and force Pakistan to pay high interest rates.