Pakistan external financing rises 23.6% to USD 1.7bn in Jul-Aug

Pakistan secured USD 1.70 billion in external financing during the first two months of the fiscal year, up 23.6% from the same period a year earlier, according to data released by the Economic Affairs Division.

Pakistan received USD 1.37 billion in external financing during July-August of the previous fiscal year, the Economic Affairs Division said in its monthly external assistance report.

The USD 1.70 billion received during July-August 2026 was equivalent to about PKR 476 billion, compared with PKR 391 billion during the corresponding period of the previous fiscal year, based on the report’s figures.

Multilateral financing reaches USD 590.96m

Multilateral institutions provided USD 590.96 million during the first two months of the current fiscal year, according to the data.

The Islamic Development Bank’s short-term facility provided USD 191.26 million, while a further USD 1.75 million came from the Islamic Development Bank.

The World Bank’s International Development Association and International Bank for Reconstruction and Development provided USD 238.49 million and USD 47.54 million, respectively.

The Asian Development Bank provided USD 95.76 million, while the Asian Infrastructure Investment Bank contributed USD 13.35 million.

Other multilateral financing included USD 2.05 million from the International Fund for Agricultural Development and USD 0.76 million from the OPEC Fund.

Multilateral institutions and bilateral development partners, excluding guaranteed Chinese financing, provided a combined USD 626.19 million during July-August.

China provides USD 146.62m in guaranteed financing

China provided USD 146.62 million in guaranteed financing during the two-month period.

Other bilateral development partners provided a combined USD 35.23 million.

Germany provided USD 12.87 million, including USD 10.73 million in project-related financing and other assistance, while Saudi Arabia provided USD 8.90 million.

France provided USD 8.52 million, Denmark USD 3.15 million, Japan USD 1.71 million and the United States USD 80,000 during the period.

Together, the USD 35.23 million from bilateral development partners and USD 146.62 million in guaranteed Chinese financing amounted to USD 181.85 million.

Commercial borrowing and Naya Pakistan Certificates

Pakistan also raised USD 300 million through foreign commercial borrowing during the first two months through United Bank Ltd.’s Dubai operation, according to the report.

Naya Pakistan Certificates generated USD 629.76 million during July-August, comprising USD 182.24 million through conventional certificates and USD 447.52 million through Islamic certificates.

The report also shows that Pakistan received USD 939.53 million in external financing in August alone, taking cumulative financing during July-August to USD 1.70 billion.

Of the total financing, USD 484.50 million was obtained for various projects during the first two months, while the remainder was classified as non-project financing, according to the government data.

The figures show that Pakistan’s external financing during the opening two months of the fiscal year came from a mix of multilateral and bilateral sources, guaranteed financing, commercial borrowing and funds raised through Naya Pakistan Certificates.