Foreign economic assistance inflows rise nearly 20pc

ISLAMABAD: Foreign economic assistance (FEA) inflows to Pakistan surged by almost 20 per cent to $6. 594bn in the first three quarters (July-March) of the current fiscal year, mainly on the back of programme support from the International Monetary Fund (IMF). Total inflows (excluding IMF disbursements), comprising both loans and grants, amounted to $6. 594bn during the first nine months of the current fiscal year, up from $5. 507bn in the same period last year, reflecting an increase of 19. 7pc. Inflows in March alone stood at $731. 3m, compared to $692m in February and $555m in the corresponding month last year, marking a 32pc increase. These inflows do not include the $1. 2bn disbursed by the IMF in December and the additional $3bn in safe deposits from Saudi Arabia in March and April, bringing cumulative inflows in 9MFY26 to more than $9. 7bn. Of the total inflows, foreign loan inflows in 9MFY26 amounted to $6. 494bn, compared to $5. 37bn in the corresponding period last year, showing an increase of almost 29pc. Grants, on the other hand, declined to just $100. 3m during the nine-month period, compared to $135. 6m last year, reflecting a 27pc decrease. The target for total foreign inflows for FY26 was set at $19. 9bn in the 2025-26 budget, up from $19. 4bn last year. Other than IMF payments, loans, grants in first nine months of FY26 amount to $6. 59bn, up from $5. 5bn in same period last year The Ministry of Economic Affairs also confirmed on Sunday that it had received $6. 594bn in total foreign inflows during the first nine months of the fiscal year, compared with $5. 507bn in the same period last year. Budgetary support The Economic Affairs Division stated that of the $6. 594bn in inflows, $2. 486bn was received for project financing, while non-project inflows amounted to $4. 108bn. This means that about $2. 449bn in loans was received during the nine months for budgetary support, despite the annual budget support target being set at $13. 5bn, down from $15bn last fiscal year. The authorities also managed to mobilise $900m under the Saudi oil facility during the nine-month period, at a rate of $100m per month, against an annual target of $1bn. Against a full-year target of $5bn from multilateral lenders (excluding the IMF), Pakistan received only $2. 583bn in 9MFY26, down from $2. 827bn in the same period last year, when the annual target was $4. 5bn. Total inflows from bilateral lenders (excluding fixed deposits from three strategic friendly countries) amounted to $1. 169bn in 9MFY26, against an annual target of $1. 36bn. However, this was more than 300pc higher than the $358m received during the same period last year, when the full-year target was $523m. Total inflows from bilateral and multilateral lenders stood at $3. 752bn in 9MFY26, against an annual target of $6. 4bn. Last year, the government secured $3. 186bn from bilateral and multilateral sources, falling short of the annual target of $5. 05bn. Bank borrowings The World Bank emerged as the top multilateral lender, with $1. 205bn in disbursements during the first nine months, up from $980m last year, reflecting a 23pc increase. In contrast, the Asian Development Bank slipped to second place, with disbursements falling 64pc to $727m from $1. 190bn last year. The Islamic Development Bank disbursed $542m during the first nine months of the fiscal year, compared to $523m in the corresponding period last year. Becoming the single largest source of foreign loans, inflows from overseas Pakistanis rose to $2. 037bn in the first three quarters of this fiscal year, up from $1. 455bn last year, through Naya Pakistan Certificates (NPCs), registering a 40pc increase. This included $1. 444bn in Islamic NPCs and $594m in conventional NPCs. Published in Dawn, May 11th, 2026

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