Pakistan plans to raise $2 billion through international bond issuances during fiscal year 2026-27 while making no provision for financing under the Saudi Oil Facility in the newly announced federal budget.
According to budget documents, the government has projected total external financing of $23.378 billion for FY27 from multilateral and bilateral lenders, commercial banks, international bond markets, and other foreign inflows.
The financing strategy includes raising funds through Eurobonds, Sukuk, and Panda bonds as part of efforts to meet the country’s external financing requirements.
Notably, the budget does not include any expected inflows under the Saudi Oil Facility, despite a revised estimate of $1 billion under the arrangement for FY26. The oil financing agreement with Saudi Arabia expired in April 2026, and while Pakistan has requested its renewal, no anticipated receipts have been incorporated into the budget projections.
The government has also reported $12 billion in bilateral deposits held by the State Bank of Pakistan. According to official sources, these deposits include approximately $8 billion from Saudi Arabia and $4 billion from China, although the budget documents do not provide a country-wise breakdown.
Pakistan expects to secure $4.866 billion from multilateral lenders during FY27. The Asian Development Bank (ADB) is projected to provide $1.68 billion, while financing is also expected from institutions including the World Bank, Asian Infrastructure Investment Bank (AIIB), European Investment Bank (EIB), Islamic Development Bank (IsDB), and the International Fund for Agricultural Development (IFAD).
The government has projected $400.42 million in loans from bilateral partners. Expected contributors include China, Saudi Arabia, France, Denmark, South Korea, the United States, Kuwait, Japan, Germany, Oman, and Italy.
Meanwhile, foreign commercial borrowing is estimated at $2.35 billion, while inflows through Naya Pakistan Certificates are expected to reach $1.122 billion during the fiscal year.
Pakistan has also budgeted $530 million in climate-related financing from the International Monetary Fund (IMF) under the Resilience and Sustainability Facility (RSF). The amount has been recorded as budgetary support.
However, disbursements under the IMF’s $7 billion Extended Fund Facility (EFF) have not been included in the federal budget, as those funds are used for balance-of-payments support and are reflected on the State Bank of Pakistan’s balance sheet.
The government’s external financing plan highlights continued reliance on international lenders and capital markets to meet fiscal and foreign exchange requirements while navigating ongoing economic challenges.
