Pakistan secures $2.29 billion in foreign assistance in first quarter of FY26

Pakistan received $2.29 billion in foreign assistance during the first four months of fiscal year 2025-26, comprising multilateral and bilateral loans, grants and inflows through Naya Pakistan Certificates (NPC), according to data released by the Economic Affairs Division.

During July–October FY26, multilateral grants amounted to $26.80 million, including $5.27 million received in October. The largest grant contributors were the International Bank for Reconstruction and Development (IBRD) with $15.40 million, the International Development Association (IDA) with $8.18 million and IFAD with $2.72 million.

Multilateral loan disbursements reached $1.11 billion during the period, with $169.5 million received in October. Key inflows included a short-term loan of $361 million and a long-term loan of $50 million from IsDB, $304 million from IDA, $173.74 million from IBRD, $167.4 million from ADB, $41.35 million from AIIB and $10 million from IFAD.

Bilateral grants totaled $23.76 million in July–October, with $4.12 million in October alone. Major contributions came from China ($9.75 million), Japan ($9.69 million) and Germany ($3.56 million).

Bilateral loans amounted to $449.90 million, with the Saudi Oil Facility accounting for $400 million. Additional inflows included $15.61 million from France, $6.69 million from Japan, $6.55 million from South Korea, $3.56 million from Germany and $9.75 million from China.

Total multilateral and bilateral grants stood at $50.56 million, while combined loan disbursements reached $1.78 billion during the first four months of the fiscal year.

NPC inflows reached $541.57 million against the full-year target of $734 million.

The FY26 budget projects $63.72 million in multilateral grants and $5.04 billion in multilateral loans. Pakistan continues to maintain $9 billion in term deposits to support foreign exchange reserves, including $5 billion from Saudi Arabia and $4 billion from China’s SAFE deposits.