Pakistan’s foreign economic assistance inflows increased 24% year-on-year to $1.7 billion during the first two months of fiscal year 2026-27, as the government resumed commercial borrowing. According to data from the Ministry of Economic Affairs, total inflows, including loans and grants but excluding the International Monetary Fund (IMF), reached $1.703 billion in July and August, compared with $1.377 billion during the same period last year.
Inflows in August rose 38% to $940 million from $680 million a year earlier, while July inflows increased to $764 million from $697 million. The rise was mainly supported by a $300 million commercial loan from United Bank Dubai and a $265 million increase in overseas Pakistanis’ investments in Naya Pakistan Certificates.
Investments in Naya Pakistan Certificates climbed nearly 73% to $630 million during July-August FY2027, compared with $365 million in the same period of FY2026. Of the total, $182 million came through conventional certificates, while $448 million was invested through Islamic certificates.
Meanwhile, inflows from multilateral and bilateral lenders declined 43.24% to $626 million from $1.103 billion a year earlier. Bilateral inflows fell 85% to $35 million, while multilateral financing declined 24% to $591 million.
Of the total $1.7 billion received during the first two months, $485 million was allocated for project financing, while $1.22 billion was classified as non-project inflows. This included around $258 million in loans for budget support.
United Bank Dubai was the largest lender during the period with $300 million, followed by the World Bank with $286 million and the Islamic Development Bank with $191 million. China provided $146 million, making it the largest bilateral lender, while the Asian Development Bank contributed $97 million.
The government has set a foreign economic assistance target of around $24 billion for FY2027, up from $20 billion in FY2026. Pakistan received slightly more than $16 billion in foreign economic assistance during FY2026.
