Foreign financial inflows to Pakistan strengthened notably during the first half of fiscal year 2025-26, with total assistance reaching $4.51 billion, marking a 20% year-on-year increase, according to figures released by the Economic Affairs Division.

In December alone, Pakistan received $1.47bn in external assistance, a sharp rise compared to $511.49m recorded in November, reflecting improved disbursement momentum from development partners.

During July–December FY26, bilateral loans and grants amounted to $1.07bn, while multilateral financing stood higher at $1.97bn, underscoring the growing role of international financial institutions in Pakistan’s external funding mix.

Bilateral grants totaled $31.68m, with Japan, China, and Saudi Arabia emerging as the leading contributors. Meanwhile, bilateral loans reached $1.04bn, including major inflows from China, Denmark, France, and a significant $600m oil facility from Saudi Arabia.

On the multilateral side, total grants during the period stood at $28.95m, with contributions from the World Bank’s lending arms and the Asian Development Bank. Multilateral loans collectively reached $1.97bn, led by the IDA, ADB, and the Islamic Development Bank.

For the full fiscal year, Pakistan has budgeted $6.4bn in external loans and $147.9m in grants. Additionally, $1.2bn was mobilized through Naya Pakistan Certificates during the six-month period.

To support foreign exchange stability, Pakistan maintained $9bn in term deposits, primarily from Saudi Arabia and China. Notably, inflows under the IMF’s Extended Fund Facility are excluded from these figures, as they are recorded separately on the balance sheet of the State Bank of Pakistan.