IMF projects USD21.197bn external financing requirements

ISLAMABAD: The International Monetary Fund has projected Pakistan’s gross external financing requirements at USD21.197 billion, equivalent to 4.6 percent of GDP, for fiscal year 2026–27, compared with projected needs of USD18.814 billion, or 4.2 percent of GDP, for the outgoing fiscal year 2025–26.

The Fund in its report “third review under the Extended Fund Facility (EFF) and second review under the Resilience and Sustainability Facility arrangement” projected gross financing needs of USD29.884 billion for 2027-28.

Pakistan’s capacity to repay the Fund remains adequate but is critically dependent on steadfast policy implementation and timely external financing. The Fund’s exposure would peak at SDR9,775 million in September 2027 (481 percent of quota and about 64 percent of projected gross reserves in 2027).

It further stated that the program is fully financed, with firm commitments for the next 12 months and good prospects for the remainder of the Fund-supported program. Programmed disbursements have largely developed as anticipated, with a planned USD250 million Panda bond issuance expected to go ahead in fiscal year 2026 Q4.

The repayment of deposits of USD3.5 billion to an official bilateral creditor was fully financed by the provision of USD3 billion in SBP deposits by another major official bilateral creditor and a 3-year USD750 million Eurobond issued on April 16. The authorities also reached an agreement for the extension of the maturity of USD5 billion in official bilateral deposits from 1 to 3 years. Other official bilateral deposits have continued to be rolled over as anticipated.

Furthermore, commercial financing facilities could potentially be tapped if needed to cover any additional external financing needs.

Pakistani authorities assured the Fund that adequate financing was secured from international partners to support economic reform programme and continue rebuilding external buffers.

Based on existing financing commitments from bilateral and multilateral partners, the programme is fully financed for the next 12 months. As committed at the outset of the EFF, the bilateral partners will also continue rolling over short-term claims (including loans, swaps and deposits) for the duration of the programme, Pakistani authorities added.

Copyright Business Recorder, 2026