The federal government has projected a significant borrowing plan for the fiscal year 2026-27, with total loans estimated to exceed Rs6,779 billion to meet budgetary requirements and finance development and other expenditures.
According to the federal budget documents, the government will also allocate a substantial amount for debt servicing, with more than Rs8,154 billion expected to be paid as interest on existing domestic and foreign loans during the next fiscal year.
The documents reveal that the major share of debt servicing will go towards domestic liabilities, with interest payments on local borrowings estimated at around Rs6,983 billion. Meanwhile, interest payments on foreign loans are projected to stand at approximately Rs1,171 billion.
For external financing, the government expects to receive Rs574 billion in project-related loans and grants aimed at supporting various development initiatives. In addition, program loans worth Rs418 billion are planned from international financial institutions and other external sources.
The budget documents further show that the government intends to secure an additional Rs5,542 billion in loans to fulfill other financial requirements and manage the fiscal deficit.
Apart from loans, Pakistan is also expected to receive around Rs31 billion in external grants during fiscal year 2026-27, which will contribute to financing selected development projects and public sector programmes.
