Pakistan has recorded a significant influx of foreign assistance totaling $4.51 billion during the first half of the fiscal year 2025-26.This marks a 20% increase compared to the same period last year, highlighting improved international support amid ongoing economic challenges.
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The data, released by the Economic Affairs Division, excludes contributions from the IMF’s Extended Fund Facility, which are accounted separately.
Breakdown of Bilateral Contributions
Bilateral loans and grants formed a key part of this assistance, amounting to $1.07 billion.
Saudi Arabia emerged as a major donor, providing $600 million under its oil facility. China contributed significantly with $255.6 million in guaranteed loans and an additional $72.28 million directly.
Other notable bilateral loans included $71.15 million from Denmark and $15.61 million from France. Grants from bilateral sources totaled $31.68 million, with Japan leading at $11.86 million. China followed with $10.57 million in grants, and Saudi Arabia added $3.31 million.
Multilateral Support and Future Projections
Multilateral institutions provided $1.97 billion in loans and $28.95 million in grants. The International Development Association (IDA) was the largest lender at $580.77 million.
The Asian Development Bank disbursed $549.24 million in loans and $2.65 million in grants. Note: The article mentions $265 million from ADB under multilateral grants, but this seems like a possible typo as it’s listed as USD265 million, which might be $2.65 million or $265,000; however, based on context, it’s interpreted as $2.65 million for consistency with other figures.
The Islamic Development Bank offered $483.78 million in short-term loans. The International Bank for Reconstruction and Development (IBRD) contributed $221.73 million. Additional multilateral loans came from the Islamic Development Bank ($52.49 million) and the International Fund for Agricultural Development (IFAD) at $21.39 million.
Grants from multilaterals included $15.40 million from IBRD and $8.18 million from IDA. In December alone, inflows reached $1.47 billion, a sharp rise from November’s $511.49 million. The fiscal year budget estimates project $147.93 million in grants and $6.4 billion in loans from these sources.
Disbursements from Naya Pakistan Certificates added $1.2 billion. To bolster reserves, Pakistan maintains $9 billion in term deposits, including $5 billion from Saudi Arabia and $4 billion from China. This assistance is crucial for maintaining foreign exchange reserves and supporting economic stability.
Overall, the surge reflects strengthened diplomatic ties and international confidence in Pakistan’s reforms.