Pakistan recorded external financing inflows amounting to $471.2 million in October 2025, according to the latest monthly report issued by the Economic Affairs Division (EAD). The inflows reflect a 7.9 percent increase compared to September and a 13.6 percent rise over the same month of the previous year. Despite the monthly uptick, the broader financing landscape shows that the country continues to face challenges in accessing long-term development funds and meeting budgeted targets.
During the first four months of FY26, cumulative external financing stood at $2.29 billion, representing only 11.5 percent of the annual estimate of $19.92 billion. Analysts note that this slow progress signals increased dependence on short-term credit facilities and emergency assistance rather than sustainable project-based financing. The composition of the inflows further highlights this trend, as a significant portion of the funds was not directed toward long-term development goals.
Of the total $2.29 billion received so far, $1.52 billion, or 66 percent, was categorized as non-project aid. Most of this amount was absorbed as budgetary support—an indication that the government is leaning heavily on external partners to stabilize fiscal gaps. In contrast, development project financing remained comparatively limited, with only $773 million—34 percent of total inflows—dedicated to infrastructure, energy, and social sector initiatives.
The Saudi Fund for Development emerged as the largest single contributor during the month, providing $400 million under its petroleum financing facility. This inflow underscores Pakistan’s dependence on oil-related support as international commodity pressures continue to shape the country’s import bill. Similarly, the Islamic Development Bank disbursed $361.43 million in short-term credits, reinforcing the trend of relying on quick financing instruments instead of long-term, sustainable capital.
Naya Pakistan Certificates (NPCs), the investment instruments aimed at attracting deposits from overseas Pakistanis, generated $734.71 million during the period. Representing 32 percent of total disbursements, these certificates remain a vital liquidity channel at a time when traditional commercial financing options remain constrained.
Multilateral institutions collectively contributed $1.11 billion, accounting for nearly half of all inflows. The World Bank group provided $347.5 million, while the Asian Development Bank contributed $167.4 million. The Islamic Development Bank’s total for the period, including short-term disbursements, stood at $411.6 million. Bilateral partners contributed $449.9 million, but the composition indicates a mixed outlook for Pakistan’s international engagements.
China’s disbursement was notably low at $9.75 million, raising questions about the pace of financing under the China-Pakistan Economic Corridor. In contrast, Saudi Arabia maintained a strong presence with total support of $404.2 million, emerging as Pakistan’s most dependable bilateral partner. France and Korea also contributed modest amounts, with $15.61 million and $6.55 million respectively.
The EAD report also highlighted that Pakistan has received no foreign commercial bank loans so far, despite an annual budget allocation of $3.1 billion for such borrowing. The absence of commercial inflows signals elevated lender caution amid Pakistan’s evolving debt profile.
Major infrastructure projects continue to receive funds, but the disbursement pace remains gradual. The Dasu Hydropower Project received $13.16 million in the first four months, while Karachi’s Yellow Line Bus Rapid Transit project drew $55.89 million. The Mohmand Dam project is being financed through combined support from multiple international lenders, reflecting its strategic importance. Additional disbursements included $28.79 million for Sindh’s emergency housing reconstruction and $9.07 million for Punjab’s Human Capital Investment program.
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