Pakistan faces $123 billion in external financing requirements over the next five years, making an exit from International Monetary Fund (IMF) dependency highly unlikely during this period.

The current $7 billion IMF loan programme is set to expire in September or October next year, after which Pakistan may need to seek a fresh IMF arrangement to meet repayment obligations.

According to media reports, external financing needs for the next fiscal year are estimated at $21.2 billion, with requirements projected to rise sharply to a record $29.88 billion in 2027–28.

In fiscal year 2028–29, external financing requirements are estimated at $23.59 billion, while Pakistan will require $22 billion in external funding during 2029–30.

By 2031, the external financing needs of the country are projected to reach $26 billion, underscoring the scale of the medium-term borrowing challenge of Pakistan.

Officials maintain that funds for external debt repayments are currently available, though projections indicate sustained dependence on multilateral and bilateral creditors.

Reports suggest that the current account deficit for the next fiscal year is estimated at $3.6 billion, while the IMF has urged Pakistan to maintain a flexible exchange rate policy.

The government has set the dollar rate at 290 rupees for next year’s budget, as the rupee is projected to depreciate by 3.5 percent against the US dollar.

The interbank dollar rate currently stands at approximately 278.42 rupees, while the federal government and provinces are expected to borrow $3.2 billion in foreign loans next year.