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Government borrows $11 billion in first 10 months of current fiscal year

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The government has borrowed $11 billion in the first 10 months (July to April) of the current fiscal year, according to official documents.

The numbers reflect a dramatic increase of 83% from the same period last year, when borrowing amounted to $6 billion. The aggregate external finance need for the current financial year stands at $19.39 billion.

The Economic Affairs Division said that in April alone, $4.5 billion was obtained and additional borrowing is likely in May and June.

The report said $8.31 billion was received under non-project aid and $2.75 billion under project aid in the July-April period, besides $120 million in awards.

The government has received more than Rs3,103 billion in local currency terms so far this fiscal year as compared to external finance of $570 million during the same period last year.

The IMF package is reported separately and is estimated at over $2.5 billion.

Key inflows included $1 billion of deferred oil payment facilities from Saudi Arabia and $480 million of loans from the Islamic Development Bank. Grants totalling about $218 million were received in April.

The report also says Pakistan relies on rollover arrangements, including deposits of $9 billion from Saudi Arabia and China, of which $3 billion from Saudi Arabia has already been rolled over. The UAE also reportedly received repayment of $3 billion in April.

Multilateral lenders including the Asian Development Bank, World Bank Group and Islamic Development Bank are likely to offer considerable financing through project and programme loans during the fiscal year.

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For three days, Pakistan lowers the price of petrol and diesel.

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For a three-day period starting on August 1, the government has announced a slight decrease in the cost of petroleum products, including gasoline and high-speed diesel (HSD).

The Petroleum Division said that the price of high-speed diesel has been lowered by Rs0.66 per litre, resulting in a new retail price of Rs392.38 per litre.

Additionally, the price of gasoline has been lowered by Rs0.12 per litre, to Rs336.03 per litre.

According to the letter, the updated pricing will go into effect between August 1 and August 3.

According to the administration, the little cut was taken after accounting for both domestic economic and budgetary factors as well as global oil costs.

In light of persistent economic pressures and swings in the world’s crude oil markets, the most recent adjustment provides customers with little respite.

The most recent update comes after the government regularly reviews fuel costs, which are decided by the currency rate, domestic tax laws, and global market trends.

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FBR surpasses its July revenue goal by Rs40 billion.

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In July 2026, the Federal Board of Revenue (FBR) collected Rs820 billion in net revenue, exceeding the monthly target by Rs40 billion.

The July tax collection target was set at Rs780 billion, but net receipts came in at Rs820 billion, according to FBR documents.

According to the papers, gross tax collections for the month totaled Rs918 billion. Net receipts were Rs820 billion after Rs98 billion of this sum was reimbursed to taxpayers under different refund categories.

Gross collections under the income tax head was Rs343 billion. Net income tax revenues fell short of the objective of Rs323 billion, coming in at Rs308 billion after the payment of Rs35 billion in refunds.

In July, sales tax collections came to Rs413 billion, while sales tax refunds were Rs53 billion.

The Federal Excise Duty (FED) collected Rs48 billion, compared to the objective of Rs47 billion, according to the FBR.

In July 2026, customs duty receipts totaled Rs115 billion, surpassing the designated objective of Rs105 billion by Rs10 billion.

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Foreign investors return to PSX after almost two years

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Foreign investors became net purchasers at the Pakistan Stock Exchange (PSX) for the first time in almost two years, indicating restored confidence in the country’s capital market at the beginning of the current fiscal year.

According to official data, foreign investors invested $34.4 million in the PSX in July 2026, a significant reversal from June 2026 when they sold $180 million worth of shares and pulled money out of the market.

The data showed that foreign investors were net buyers for the first time in nearly 23 months, with banking and exploration companies receiving the greatest investment in the month.

Foreign investors made investments in the banking sector to the tune of $13.8 million during July, while investments in exploration businesses amounted to $6.7 million.

However, the data also revealed that international investors preferred to dispose of cement stocks over the same period.

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