Pakistan Receives $1.7 Billion in Foreign Assistance During July-August
ISLAMABAD: Pakistan received around $1.7 billion in foreign economic assistance during the first two months of fiscal year 2026-27, marking a 24% increase compared with the same period last year.
According to data from the Ministry of Economic Affairs, total inflows, including loans and grants but excluding International Monetary Fund (IMF) funds, reached $1.703 billion in July and August, compared with $1.377 billion a year earlier.
Inflows increased to $940 million in August from $680 million in the same month last year. July receipts stood at $764 million, up from $697 million a year earlier.
The rise was supported by the resumption of commercial borrowing, including a $300 million loan from United Bank Dubai. Investments by overseas Pakistanis in Naya Pakistan Certificates also increased during the period.
Investment in Naya Pakistan Certificates climbed nearly 73% to $630 million during the first two months of FY2027, compared with $365 million in the corresponding period of the previous fiscal year. Conventional certificates attracted $182 million, while Islamic certificates received $448 million.
No commercial loan inflows were recorded during the first two months of FY2026, as international commercial lenders had remained cautious about lending to Pakistan amid economic and credit-rating concerns.
Meanwhile, funding from multilateral and bilateral development partners declined. Combined inflows from these sources fell 43.24% to $626 million from $1.103 billion.
Bilateral financing dropped 85% to $35 million, while multilateral inflows decreased 24% to $591 million.
Pakistan has set a target of around $24 billion in foreign economic assistance for FY2027, compared with approximately $20 billion for FY2026. The Ministry of Economic Affairs reported that the country received slightly more than $16 billion during FY2026.
Of the $1.703 billion received during July and August, about $485 million was allocated to project financing, while $1.22 billion came through non-project financing. Around $258 million of the latter was in the form of budget-support loans.
United Bank Dubai was the largest lender during the period with $300 million, followed by the World Bank with $286 million and the Islamic Development Bank with $191 million.
China ranked as the fourth-largest lender overall and the biggest bilateral source, providing $146 million. The Asian Development Bank followed with $97 million.
