Pakistan secures $1.82 billion in foreign assistance in FY26's first quarter

Pakistan received a total of $1.82 billion in foreign assistance during the first quarter (July-September) of fiscal year 2025-26, according to data released by the Economic Affairs Division (EAD) on Wednesday. The inflows include bilateral and multilateral loans and grants, as well as investments in Naya Pakistan Certificates (NPCs).

The EAD report showed that Pakistan secured $19.37 million in bilateral grants during the quarter, with China contributing the largest share at $9.75 million, followed by Japan ($6.16 million) and Germany ($3 million). In September alone, the country received $2.42 million in bilateral grants.

Bilateral loans totaled $334.8 million, of which $300 million came under the Saudi oil facility. Additional inflows included $9.75 million from China, $8.5 million from France, $6.16 million from Japan, $4.21 million from South Korea, and $3.03 million from Germany.

In multilateral assistance, Pakistan received $21.53 million in grants, including $12.95 million from the International Bank for Reconstruction and Development (IBRD) and $8.18 million from the International Development Association (IDA).

Multilateral loan disbursements amounted to $939.28 million, with major contributors being the Islamic Development Bank ($311.43 million), IDA ($287 million), IBRD ($144.94 million), and the Asian Development Bank ($116.94 million).

Combined multilateral and bilateral grants stood at $40.9 million, while total loan disbursements reached $1.27 billion during the quarter.

Pakistan also attracted $541.57 million in investments through Naya Pakistan Certificates, against a full-year FY26 target of $609 million.

To maintain foreign exchange stability, Pakistan continues to hold $9 billion in term deposits, including $5 billion from Saudi Arabia and $4 billion in Chinese SAFE deposits, the report said.

An official informed Nukta that International Monetary Fund (IMF) disbursements under the Extended Fund Facility (EFF) are not included in these figures, as they are treated as balance-of-payments support recorded on the State Bank of Pakistan’s balance sheet.

An economist said the inflows provide temporary relief but highlight Pakistan’s continued reliance on external financing.
“While $1.8 billion in assistance helps sustain short-term liquidity, Pakistan must focus on boosting exports and foreign direct investment to ensure long-term stability,” he said.

"The reliance on loans rather than grants underscores structural weaknesses in the external account.”