Pakistan’s external financing climbs 19.7% to $6.59 billion in nine months

Pakistan secured $6.59 billion in foreign assistance during the first nine months of fiscal year 2025-26, up 19.73% from $5.50 billion received in the corresponding period of the previous year, according to official data released by the Economic Affairs Division (EAD).

The rise in external inflows was supported by strong multilateral lending, substantial deposits under the Naya Pakistan Certificates (NPC) scheme and continued financing from Saudi Arabia under its oil facility.

Multilateral creditors remained the largest source of official financing, disbursing $2.58 billion during July-March. The largest contribution came from the International Development Association, which provided $829 million, followed by the Asian Development Bank with $727 million.

The Islamic Development Bank extended $539.91 million, including $483.78 million in short-term financing and $56.13 million in regular lending. Other multilateral disbursements included $376.36 million from the International Bank for Reconstruction and Development, $88.86 million from the Asian Infrastructure Investment Bank and $21.39 million from the International Fund for Agricultural Development.

In addition to official development lending, Pakistan attracted $2.03 billion through the Naya Pakistan Certificates programme, including $1.44 billion under Shariah-compliant certificates and $593.64 million through conventional instruments.

Bilateral financing totaled $1.169 billion, comprising both grants and loans. Bilateral loans alone amounted to $1.04 billion, dominated by $910 million from Saudi Arabia under the deferred oil payment arrangement.

Other bilateral lenders included China with $72.28 million, Denmark with $71 million, France with $47.72 million, Japan with $23 million, Kuwait with $22 million, Germany with $12 million and South Korea with $9.49 million.

Bilateral grants stood at $43.61 million. Japan provided the largest share at $19.20 million, followed by China with $10.57 million, Germany with $9 million and Saudi Arabia with $3.31 million.

Guaranteed bilateral borrowing from China increased by $123.4 million from the previous month to $392.82 million during the period under review.

Multilateral grants totaled $54.79 million, including $26.03 million from the IBRD, $10.76 million from the IDA, $14.50 million from the ADB and $2.72 million from IFAD.

Pakistan also received $201.90 million from Standard Chartered Bank London and $209.51 million from the International Monetary Fund.

The EAD said disbursements under the IMF’s Extended Fund Facility are not reflected in its accounts or in the Ministry of Finance’s books because they are classified as balance-of-payments support and are recorded on the balance sheet of the State Bank of Pakistan.