Foreign funding to Pakistan rises 83% YoY basis, official data shows

Pakistan has recorded a significant increase in foreign funding during the current financial year, with official data showing a sharp rise in external inflows compared with the previous year.

According to the Ministry of Economic Affairs, the country secured $11 billion in external loans between July and April, marking an increase of around 83% compared with $6 billion received during the same period last year.

The rise in foreign financing was supported by both bilateral and multilateral inflows, as well as deferred payment arrangements and rollovers of existing deposits.

The ministry reported that total external financial inflows for the period included $8.31 billion in non-project financing and $2.7566 billion in project financing.

In addition, Pakistan received $120 million in grants over the same period, compared with $570 million recorded in the corresponding period last year.

A substantial portion of the inflows came in April 2026 alone, when the country received approximately $4.5 billion.

Among key contributors, Saudi Arabia provided a $1 billion oil financing facility through deferred payment arrangements, while the Islamic Development Bank extended $480 million in loans.

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Multilateral lenders also played a significant role, with $1.924 billion received from the Asian Development Bank and $1.6639 billion from the World Bank Group.

The report also noted that $3 billion in deposits from Saudi Arabia have already been rolled over, with a further $9 billion in safe deposit rollovers from Saudi Arabia and China expected during the fiscal year.

Separately, Pakistan repaid $3 billion to the United Arab Emirates in April 2026. Overall, the Ministry of Economic Affairs estimates total external inflows for the current financial year at $19.39 billion.