Pakistan plans to raise $2 billion through Eurobonds, Sukuk and Panda bonds in fiscal year 2026-27. However, the government has made no provision for financing under the Saudi Oil Facility in the new budget.
Budget documents show that Pakistan expects to secure $23.378 billion in external financing next year. The funding will come from multilateral lenders, bilateral partners, commercial banks, international bond markets and other foreign inflows.
The financing strategy comes as Pakistan works to strengthen its external accounts. It also seeks to maintain foreign exchange reserves under an IMF-backed reform programme.
A major feature of the budget is the absence of expected inflows from the Saudi Oil Facility.
“The government has estimated no receipts from the Saudi Oil Facility for the coming fiscal year, compared with the revised estimate of $1 billion for 2025-26.”
Saudi Arabia’s oil financing arrangement expired in April 2026. Pakistan has requested an extension. However, officials did not include any expected inflows in the budget.
The facility has supported Pakistan’s balance of payments for years. It allowed the country to import oil on deferred payment terms.
Saudi and Chinese deposits remain key support
The government has listed $12 billion in bilateral deposits held by the State Bank of Pakistan.
The budget documents do not provide a country-wise breakdown. However, official sources said Saudi Arabia accounts for $8 billion, while China provides the remaining $4 billion.
Pakistan also expects to receive $4.866 billion from multilateral lenders during 2026-27.
The Asian Development Bank is expected to provide $1.68 billion. Meanwhile, the Asian Infrastructure Investment Bank could contribute $86.337 million.
The government has projected another $17.669 million from the European Investment Bank.
Pakistan expects to receive $412 million from the World Bank’s International Bank for Reconstruction and Development. It also expects $1.43 billion from the International Development Association.
Other multilateral inflows include $186.64 million from the Islamic Development Bank. The institution may also provide $1 billion in short-term financing.
Additional support includes $39.75 million from the International Fund for Agricultural Development and $8.76 million from the OPEC Fund for International Development.
Bond markets and IMF financing
Pakistan has projected bilateral loans of $400.42 million for the next fiscal year.
China is expected to provide $97.64 million. France may contribute $94 million, while Saudi Arabia could provide $47.18 million.
The government also expects financing from Denmark, South Korea, the United States, Kuwait, Japan, Germany, Oman and Italy.
Foreign commercial borrowing is projected at $2.35 billion. Inflows through Naya Pakistan Certificates are estimated at $1.122 billion.
The budget also includes $530 million under the IMF’s Resilience and Sustainability Facility. The programme supports climate-related reforms and investments.
However, the government does not record disbursements under the IMF’s $7 billion Extended Fund Facility in the federal budget. The State Bank of Pakistan records those funds separately because they support the country’s balance of payments.
The financing plan highlights Pakistan’s continued reliance on international lenders, friendly countries and global capital markets. The government hopes these inflows will help meet external funding needs during the next fiscal year.
