Pakistan received more than $16.16 billion in foreign assistance during fiscal year 2025-26, government data showed. Nearly four-fifths of the inflows went toward non-development financing, while only about one-fifth was allocated to development projects. Loans accounted for almost all of the total, with grants making up a small fraction.
How much foreign financing did Pakistan receive in FY2025-26?
Pakistan secured $16.16 billion in total foreign assistance during the fiscal year, according to the Economic Affairs Division (EAD). This included $16.01 billion in loans and just $149.53 million in grants.
The figures underscore Pakistan's continued reliance on external borrowing to meet its financing needs.
How was Pakistan's foreign financing split between loans and grants?
Loans made up almost 99% of total foreign assistance, while grants accounted for less than 1% of total inflows. Around $12.72 billion, or nearly 79% of the total, was used for non-development financing, including budgetary support, foreign currency deposits and commercial borrowing. The remaining $3.43 billion went to development projects across energy, transport, water, health, education, flood rehabilitation and social protection.
Which institutions gave Pakistan the most foreign financing?
Multilateral development institutions remained the largest source of financing, disbursing $5.03 billion during the fiscal year. Major contributors included the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Islamic Development Bank and other multilateral lenders. Saudi Arabia separately provided $3 billion as a time deposit to help bolster Pakistan's foreign exchange reserves.
Pakistan also mobilised about $3.05 billion through National Prize Bonds and National Savings instruments. Commercial banks extended about $1.90 billion in financing during the fiscal year, while bilateral partners disbursed $1.356 billion. The International Monetary Fund (IMF) provided $420.78 million in budget support under its lending programme.
How much financing did Pakistan receive from China?
A Chinese bank extended $1.7 billion in budgetary financing during the fiscal year. China separately provided a $392.82 million loan for the Chashma Nuclear Power Plant Unit-5 (C-5) project. These disbursements formed part of the bilateral financing Pakistan received alongside multilateral and commercial sources.
Development-related disbursements financed projects across key sectors, including energy, transport, water resources, healthcare, education, flood recovery and social protection, according to the report. The provisional data highlight Pakistan's continued dependence on external borrowing to meet its fiscal and balance-of-payments financing needs, with grants accounting for only a small fraction of total foreign assistance.
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