Pakistan received $939.53 million in external financing during August 2026, bringing total external inflows during the first two months of fiscal year 2026-27 to $1.70 billion, according to the latest data released by the Economic Affairs Division. The August inflows reflected contributions from multilateral and bilateral development partners, commercial borrowing and foreign financing mobilised through the Naya Pakistan Certificate scheme. The monthly financing mix also included a major $300 million commercial loan from UBL Dubai, which represented the largest single inflow recorded during the month. The figures highlight the continued role of external financing in supporting Pakistan’s fiscal and development requirements during the opening months of FY27.
Disbursements from bilateral and multilateral development partners amounted to $353.76 million in August, taking their combined inflows for July and August to $626.19 million. Multilateral development partners accounted for $338.13 million of the August amount, raising their cumulative contribution during the first two months of FY27 to $590.96 million. Bilateral development partners provided $15.62 million during August, taking their cumulative disbursements to $35.23 million. The multilateral component remained dominated by the Islamic Development Bank’s short-term facility, which provided $168.55 million during August and brought its cumulative FY27 disbursement to $191.26 million. The International Development Association disbursed $107.84 million during the month, taking its cumulative total to $238.49 million.
Other multilateral institutions also contributed to Pakistan’s external financing during the period. The Asian Development Bank provided $36.59 million in August, increasing its FY27 cumulative disbursement to $95.76 million. The International Bank for Reconstruction and Development contributed $18.32 million during the month, taking its cumulative total to $47.54 million. The Asian Infrastructure Investment Bank added $6.78 million in August, bringing its FY27 total to $13.35 million. The International Fund for Agricultural Development recorded a smaller disbursement of $0.05 million, with its cumulative total reaching $2.05 million. Meanwhile, the Islamic Development Bank and the OPEC Fund recorded no fresh disbursements during August, leaving their respective cumulative FY27 totals at $1.75 million and $0.76 million.
Bilateral financing during August came from several development partners, although the overall amount remained substantially lower than multilateral assistance. France disbursed $7.22 million during the month, raising its FY27 cumulative financing to $8.52 million. Denmark provided $3.15 million, representing its first disbursement of the fiscal year and bringing its cumulative total to the same amount. Germany contributed $2.92 million, taking its cumulative disbursement to $12.87 million, while Saudi Arabia provided $1.48 million and increased its FY27 total to $8.90 million. Japan contributed $0.77 million, taking its cumulative amount to $1.71 million, while the United States disbursed $0.08 million during August. China’s guaranteed bilateral loan recorded no new disbursement during the month, leaving its FY27 cumulative amount unchanged at $146.62 million.
Commercial borrowing also formed a significant part of August’s external financing. UBL Dubai disbursed a $300 million loan during the month, marking its first commercial bank inflow for FY27 and taking total commercial bank financing during the fiscal year to $300 million. In addition, foreign commercial borrowing through the Naya Pakistan Certificate scheme amounted to $285.77 million in August. This comprised $84.92 million raised through the conventional facility and $200.85 million through the Islamic facility. With these August inflows, cumulative financing through Naya Pakistan Certificates during the first two months of FY27 reached $629.76 million, making the scheme an important source of foreign currency inflows during the period.
The purpose-wise composition of external financing showed that non-project aid accounted for the largest share of August’s inflows. Non-project financing reached $785.27 million during the month, including $585.77 million in budgetary support and $168.55 million provided through the Islamic Development Bank’s short-term facility. The composition indicates that a substantial portion of the external resources received during the month was directed toward programme-based financing rather than specific development projects. On a cumulative basis, non-project disbursements reached $1.22 billion during the first two months of FY27. Project-based financing, meanwhile, stood at $154.26 million in August, taking cumulative project disbursements for the fiscal year to $484.56 million.
The latest EAD figures therefore show that Pakistan’s external financing during the opening two months of FY27 has come from a combination of development assistance, commercial borrowing and certificate-based foreign inflows. While multilateral institutions continued to account for a major portion of development partner disbursements, commercial financing and Naya Pakistan Certificates also provided sizeable amounts during August. The $1.70 billion cumulative external financing recorded during July and August includes substantial programme-based support alongside project-related resources, reflecting the different channels through which foreign financing is being mobilised during the early part of the fiscal year.
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