Pakistan began the new fiscal year with a strong rise in foreign inflows, recording $695 million in July, marking a 59 percent increase compared to the same month last year.
According to official data, the inflows included $675m in loans and $19m in grants, a major improvement from July 2024 when the country secured $426m in loans and $10.5m in grants. This surge comes on the heels of Pakistan finalising its Extended Fund Facility (EFF) with the International Monetary Fund (IMF) after delays linked to the federal budget approval.
The annual target for foreign inflows in FY2025-26 has been set at $19.9 billion, slightly higher than the $19.4bn target for the previous year. This projection includes $6.4bn from multilateral and bilateral lenders, $400m via international bonds, $3.1bn from foreign commercial loans, along with major time deposits from Saudi Arabia and China.
In contrast, July 2023 saw a much larger inflow of $5.1bn due to the IMF’s nine-month Stand-By Agreement (SBA), which unlocked $2bn from Saudi Arabia and $1.2bn from the IMF alone.
Breaking down the July 2025 figures, project financing stood at $246.47m, down 20 percent from $307m in July 2024, while non-project financing rose sharply to $448m compared to $129m last year. Budget support loans also saw a historic jump, hitting $196m in July compared to just $1.23m in the same month of 2024, despite the annual budget support target being reduced to $13.5bn from last year’s $15bn.
Pakistan also received $100m under the Saudi Oil Facility in July against an annual target of $1bn. Multilateral lenders provided $380m, almost double the $201m secured in July 2024, while bilateral lenders contributed $118m, slightly up from $108m last year. Together, bilateral and multilateral lenders provided $498.3m in July, compared to $309m in the same month of 2024.
Meanwhile, remittances through Naya Pakistan Certificates rose to $196.2m in July, up from $128m a year earlier. The government expects $609m in remittances through these certificates during the fiscal year.
Overall, with an ambitious $19.9bn foreign financing target, Pakistan is banking on steady multilateral and bilateral support, $400m in international bonds, $3.1bn in commercial loans, and deposits from strategic allies including $5bn from Saudi Arabia and $4bn from China.