Islamabad: Pakistan secured $27.2 billion in external financing during FY2025-26, close to the country’s $30 billion merchandise exports, according to available government data. The amount included $16 billion in fresh inflows, $2.2 billion from the IMF, $5 billion in Saudi loan rollovers, and $4 billion in Chinese rollovers. Nearly 88% of the total financing was used for budgetary support, debt repayments, and foreign exchange reserve strengthening, while only $3.4 billion went to development projects. During the same year, exports declined 6%, imports crossed $69 billion, and the trade deficit neared $40 billion. This financing supports short-term stability, but also highlights pressure on investment, construction costs, and economic confidence. Can Pakistan reduce its reliance on external borrowing?
