Pakistan received a total of $27.2 billion in foreign loans and debt rollovers during the fiscal year 2025-26. This large amount included $16 billion in fresh financing, $2.2 billion from the International Monetary Fund (IMF), and around $9 billion in rollovers mainly from Saudi Arabia and China.
The government used most of these funds for important needs. A big part supported the national budget, helped repay old external debts, and strengthened foreign exchange reserves. However, only a small share went toward development projects like infrastructure and long-term growth.
By the end of June 2026, Pakistan’s foreign reserves reached $18.5 billion. This helped improve the country’s financial position and gave some breathing room for economic stability.
Despite these inflows, Pakistan still faces many challenges. The country has weak exports, low foreign investment, and growing dependence on borrowing from outside. Rising financing needs continue to put pressure on the economy.
