ISLAMABAD: Foreign assistance to Pakistan during the first half of the fiscal year 2025-26 reached USD 4.51 billion, registering a 20 percent increase compared to the corresponding period of last year, according to data released by the Economic Affairs Division (EAD).
The data showed that combined multilateral and bilateral loans and grants in December stood at USD 1.47 billion, a sharp rise from USD 511.49 million recorded in November. During the July–December 2025-26 period, total bilateral loans and grants amounted to USD 1.07 billion, while multilateral loans and grants reached USD 1.97 billion.
In the first six months of the fiscal year, total bilateral grants were recorded at USD 31.68 million. Japan emerged as the largest grant provider with USD 11.86 million, followed by China with USD 10.57 million and Saudi Arabia with USD 3.31 million.
Bilateral loans during the July–December period totalled USD 1.04 billion. This included USD 255.6 million in Chinese guaranteed loans, USD 72.28 million from China, USD 71.15 million from Denmark, USD 15.61 million from France, and a significant USD 600 million loan from Saudi Arabia under its oil facility for Pakistan.
Multilateral grants received during the six-month period amounted to USD 28.95 million. Of this, USD 15.40 million was provided by the International Bank for Reconstruction and Development (IBRD), USD 8.18 million by the International Development Association (IDA), USD 2.72 million by the International Fund for Agricultural Development (IFAD), and USD 265 million by the Asian Development Bank.
Total multilateral loans during the period reached USD 1.97 billion. The IDA was the largest contributor with USD 580.77 million, followed by the Asian Development Bank with USD 549.24 million. Other contributors included the Islamic Development Bank’s short-term loan of USD 483.78 million, IBRD with USD 221.73 million, IsDB with USD 52.49 million, and IFAD with USD 21.39 million.
For the full fiscal year 2025-26, budget estimates project multilateral and bilateral grants of USD 147.93 million, while loans are estimated at USD 6.4 billion. Disbursements under the Naya Pakistan Certificates during July–December stood at USD 1.2 billion.
To maintain foreign exchange reserves, Pakistan also held USD 9 billion as term deposits, including USD 5 billion from Saudi Arabia and USD 4 billion from China. The IMF’s Extended Fund Facility is not reflected in EAD or Ministry of Finance accounts, as it is recorded as balance of payments support on the State Bank of Pakistan’s balance sheet.
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