Foreign inflows to Pakistan nearly doubled to $1.37 billion in two months of FY25-2026

Foreign assistance to Pakistan saw a boost in the first two months of the current fiscal year, reaching $1.377 billion, nearly double the $714 million received in the same period last year, according to the Ministry of Economic Affairs.

In August alone, the country received $680 million, marking a 152% rise compared to last year’s $270 million. In July, $698 million was disbursed, up 57% from $444 million in July 2024.

Of the total foreign inflows, $1.345 billion came from loans, while $33 million came in the form of grants. This marks a 103% increase in loan disbursements compared to the previous year, although grants saw a 31% decrease.

This increase, amounting to a 93% rise, is attributed to Pakistan’s ongoing engagement with the International Monetary Fund (IMF) and the finalisation of the Extended Fund Facility (EFF). 

The growth in foreign inflows aligns with Pakistan’s target of $19.9 billion for the current fiscal year, slightly higher than last year’s target of $19.4 billion. 

The Ministry of Economic Affairs reports that the largest inflows were from multilateral lenders, with $780 million received in the first two months—an increase from $293 million in the same period last year.

Pakistan received $200 million from the Saudi oil facility in the first two months, at a monthly rate of $100 million, contributing to the fiscal year’s $1 billion target from Saudi Arabia.

Pakistan’s total inflows from bilateral and multilateral lenders amounted to $1.013 billion in the first two months, compared to $456 million in the same period last year. These inflows, which include loans and grants, support the country’s development projects and budgetary requirements.

Meanwhile, remittances from overseas Pakistanis increased to $365 million, up from $259 million last year. The government is targeting $609 million through Naya Pakistan Certificates during the current fiscal year.