ISLAMABAD: Pakistan secured foreign aid commitments worth $2.5 billion from development partners during the first half (July–December) of the current fiscal year 2024–25, according to the Economic Affairs Division (EAD).
These foreign aid commitments for Pakistan include $1,947 million from multilateral development partners, $53 million from bilateral partners, and$$500 million from foreign commercial banks. Of the total commitments, 20% were allocated for balance of payments (BoP) and budgetary support to strengthen foreign exchange reserves and stabilize the exchange rate. Additionally, 33% was earmarked as program financing, 36% for project financing, and 11% for commodity financing.
Among multilateral development partners, the Asian Development Bank (ADB) emerged as the largest contributor, committing $1,543 million (79% of multilateral aid). The Islamic Development Bank (IsDB) pledged $269 million (14%), while the World Bank provided $135 million (7%).
During the same period (Jul–Dec 2024–25), disbursements totaled $3,755 million, primarily from multilateral and bilateral development partners as well as international financial institutions (IFIs). The World Bank led disbursements with $909 million, followed by the ADB with $518 million, and IsDB with $240 million.
Sector-wise disbursements included $547 million for Energy & Power, $311 million for 2022 Flood Recovery, $134 million for Health & Nutrition, $97 million for Science & Technology, $80 million for Physical Planning & Housing, $62 million for Transport & Communication, $61 million for Water, $52 million for Agriculture, and $50 million for Construction.
On the bilateral front, China was the top contributor with $246 million, followed by France with $101 million. Beijing is set to extend another multi-billion dollar financial assistance to Islamabad in June.
As of December 31, 2024, Pakistan’s total external public debt stood at $86.62 billion. The government repaid $6.1 billion during Jul–Dec 2024–25 in external debt servicing—comprising $4.23 billion in principal repayments and $1.875 billion in interest payments. The net transfer on external public debt resulted in a negative balance of $1.73 billion, indicating a reduction in Pakistan’s external public debt stock.
These foreign aid commitments for Pakistan play a critical role in maintaining fiscal stability and supporting essential development sectors across the country.