ISLAMABAD: In the midst of the selection process for filling the lucrative post of executive director at two major multilateral creditors based in Washington and Manila, Pakistan has received increased foreign loans in the first month (July 2025) of the current fiscal year, The News reported on Tuesday.Islamabad secured foreign loans of $695 million in July compared to $436.4 million in the same month of the previous fiscal year, representing an increase of almost 59%. Against the projected foreign loans and grants of $19.7 billion for FY26, Pakistan has obtained $694.53 million in July 2025.
The World Bank has disbursed the largest project loans of $157.69 million under IDA funding and $52.56 million as an IBRD loan in July 2025. Pakistan also received $100 million from Saudi Arabia in shape of Saudi Oil Facility (SOF) against the total projected amount of $1 billion.It is expected that the SOF will continue in the first 10 months (July-April) of FY26 under the existing arrangement. The government has constituted a high-powered committee, headed by Deputy Prime Minister Ishaq Dar, for nomination of ED to the World Bank and Asian Development Bank (ADB).
The ministerial committee, led by Ishaq Dar, has finalised the name for the slot of ED in the WB, but name of ED for the ADB is yet to be finalised. However, the WB has disbursed its project financing from the first month of the current fiscal year.According to the official data released by the Economic Affairs Division (EAD) on Monday, Islamabad has obtained $118.4 million as bilateral loans from friendly countries in July 2025 out of the total budgetary estimates of $1.277 billion for the CFY26.
Saudi Arabia has committed disbursement of $1 billion in shape of Saudi Oil Facility in FY26. China disbursed $6 million on July 25 against the budgetary estimates of $36 million. France has disbursed $8.5 million, Germany $2.02 million, Japan $0.81 million, Korea $0.6 million, and the USA $0.19 million.During July 2025, the total disbursement from multilateral creditors stood at $379.88 million. The government has envisaged disbursement of $410 million from the IMF for the current fiscal year, which will be released on account of the Resilience Sustainability Facility (RSF) on the approved facility of $1.4 billion for 28 28-month period for climate finance, and it will be shown on the accounting system of the EAD and Ministry of Finance.
The IMF lending facility under the Extended Fund Facility (EFF) is not shown on the EAD and Ministry of Finance because its a balance of payment support (BoP) and incorporated on the balance sheet of the State Bank of Pakistan.The multilateral loan and grants from the creditors stand at $379.88 million. Among the prominent lenders were WB’s IDA $156.24 million, Islamic Development Bank $131.20 million, IBRD $42.91 million, and ADB $33.22 million. The disbursement against the Naya Pakistan Certificate hovers around $196.22 million. The total budget estimates of Naya Pakistan Certificates in FY26 stand at $609 million.