Pakistan obtained foreign loans worth $16.2 billion from China during the last fiscal year, including $1.7 billion in refinancing, as the country continued to rely on external financing to meet its economic requirements.
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According to official data, the government remained short of its overall foreign loan and grant target by $3.72 billion during the fiscal year. The government had set a target of securing $19.92 billion through foreign loans and grants but could not achieve the planned amount.
China remained one of Pakistan’s largest sources of external financing during the period, providing significant support through loans and refinancing arrangements. The funds were used to address financial needs and support economic activities amid ongoing fiscal pressures.
Official figures showed that the Asian Development Bank (ADB) was the largest single source of foreign financing during the fiscal year, providing $953.74 million in loans.
The data highlights Pakistan’s continued dependence on international financial institutions and bilateral partners to manage development needs, balance external payments and support public sector projects.
The shortfall in foreign financing came despite government efforts to secure additional resources through international partners. Economic challenges, including debt obligations, foreign exchange requirements and fiscal constraints, have remained key concerns for policymakers.
Pakistan has been pursuing external financing through multiple channels, including bilateral agreements, multilateral institutions and refinancing arrangements to maintain financial stability.
The country’s economic managers have repeatedly stressed the need to increase exports, attract foreign investment and improve revenue collection to reduce dependence on external borrowing over the long term.
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The latest figures underline China’s important role in Pakistan’s external financing landscape, while also reflecting the broader challenges faced by the country in meeting ambitious foreign funding targets.