ISLAMABAD: Pakistan is expected to face significant external financing challenges over the next five years, with total foreign funding requirements projected to exceed $123 billion, raising concerns that the country may need to seek additional support from the International Monetary Fund (IMF) even after the completion of its current bailout program.
According to official financial projections, Pakistan’s existing $7 billion IMF loan program is scheduled to conclude in September or October next year. However, the country’s sizeable debt repayment obligations and external financing requirements are likely to keep pressure on policymakers and economic managers in the years ahead.
Documents reviewed by officials indicate that Pakistan’s external financing needs for the upcoming fiscal year are estimated at approximately $21.2 billion. The requirement is expected to rise sharply in subsequent years, reaching nearly $29.9 billion in fiscal year 2027-28, which would represent the highest annual external financing requirement during the five-year period.
The projections further show that Pakistan may require around $23.6 billion in external financing during fiscal year 2028-29, followed by approximately $22 billion in 2029-30. By fiscal year 2030-31, the country’s foreign financing needs are expected to increase again, touching nearly $26 billion.
Economic experts believe these figures highlight the scale of Pakistan’s dependence on external borrowing, foreign investment, multilateral financing, and support from international lenders to maintain macroeconomic stability and meet debt servicing obligations.
Officials maintain that arrangements are currently in place to manage upcoming foreign debt repayments and financing commitments. However, analysts caution that sustained economic reforms, export growth, and higher foreign exchange inflows will be crucial to reducing reliance on emergency financial assistance in the future.
The documents also estimate Pakistan’s current account deficit at around $3.6 billion for the next fiscal year. The IMF has continued to stress the importance of maintaining a market-based and flexible exchange rate regime as part of broader economic reforms aimed at strengthening external stability.
For budget planning purposes, the government has reportedly assumed an exchange rate of Rs290 per US dollar for the next fiscal year. Meanwhile, the Pakistani rupee is projected to weaken by approximately 3.5 percent against the dollar over the coming year. The greenback is currently trading at around Rs278.42 in the interbank market.
