Pakistan received a total of $4.51 billion in foreign assistance during the first half of fiscal year 2025-26, reflecting a 20% increase compared to the same period in the previous year, according to the latest data released by the Economic Affairs Division (EAD). The inflow highlights a sustained commitment from both multilateral and bilateral partners to support Pakistan’s economic stability and development programs.
In December 2025 alone, Pakistan secured $1.47 billion in combined multilateral and bilateral loans and grants, a sharp rise from $511.49 million recorded in November. The increase underscores the continued confidence of foreign lenders and development partners in Pakistan’s fiscal management and reform trajectory.
Breaking down the figures for July to December 2025-26, bilateral loans and grants reached $1.07 billion, while multilateral loans and grants accounted for $1.97 billion. Bilateral grants for this period totaled $31.68 million, with Japan contributing the largest portion at $11.86 million, followed by China with $10.57 million and Saudi Arabia with $3.31 million.
Bilateral loans during H1 FY26 amounted to $1.04 billion. This included $600 million from Saudi Arabia under an oil financing facility, alongside loans from China ($255.6 million) and Denmark ($71.15 million). These funds are expected to help manage Pakistan’s external obligations and support key sectors of the economy.
In terms of multilateral support, Pakistan received $28.95 million in grants, with the International Bank for Reconstruction and Development (IBRD) contributing $15.4 million. Multilateral loans totaled $1.97 billion, with the International Development Association (IDA) providing the largest share at $580.77 million, followed closely by the Asian Development Bank (ADB) with $549.24 million.
The government projects that for the entire FY26, total multilateral and bilateral grants will reach $147.93 million, alongside $6.4 billion in loans. The Naya Pakistan Certificates contributed an additional $1.2 billion during the first half of the fiscal year, further strengthening the country’s financial position.
To bolster foreign exchange reserves, Pakistan held $9 billion as term deposits, including $5 billion from Saudi Arabia and $4 billion from China. These funds enhance reserve stability and provide liquidity support to manage macroeconomic challenges effectively.
It is important to note that lending under the IMF Extended Fund Facility (EFF) is not reflected in the EAD reports, as it is recorded on the balance sheet of the State Bank of Pakistan.
Overall, the inflows in H1 FY26 demonstrate strong bilateral and multilateral engagement with Pakistan and highlight the government’s ability to mobilize external resources to support economic growth, reserve management, and development priorities. The sustained foreign assistance provides a critical buffer for the country’s balance of payments and underscores the confidence of international partners in Pakistan’s fiscal and policy reforms.
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