The government has yet to receive any of the $9 billion budgeted term deposits for the first four months of the current fiscal year (July-October 2024-25), compared to $3 billion made during the same period last year, according to data from the Department of Finance. Economic Affairs (EAD).
For fiscal year 2025, the government expects $9 billion in term deposits, including $5 billion from Saudi Arabia and $4 billion from safe deposits in China. However, no flows below this level have been recorded so far.
Last year, it budgeted $3 billion in term deposits, including $2 billion from Saudi Arabia and $1 billion from the United Arab Emirates, all of which were received within the first month.
EAD data also indicates a slowdown in performance in foreign commercial banks’ loans. Against the $3.779 billion budgeted for fiscal year 2025, the country received only $200 million, which was disbursed in September. No borrowing was recorded in July, August or October.
The government’s total external financing target for fiscal year 2025 is $19.393 billion, of which $19.216 billion is in the form of loans and $176.29 million is in the form of grants. This does not include any contributions from the International Monetary Fund.
A recent report by the International Monetary Fund indicated that the Pakistani authorities expressed confidence in securing sufficient financing from international partners to support the economic reform program.
However, current projections highlight remaining financing needs of $5 billion over the life of the IMF program, even after incorporating financial commitments, extensions, and program contributions.
The authorities cited commitments from bilateral and multilateral partners, including China, Saudi Arabia, the Asian Development Bank and the Islamic Development Bank. They also emphasized continued efforts to secure renewal of short-term claims and lengthen maturities to ease funding pressures over the duration of the programme.