Pakistan Receives $1.7 Billion in Foreign Assistance During July-August

Pakistan received $1.703 billion in foreign loans and grants during July-August 2026, marking a 23.6% increase from the $1.377 billion received during the same period of the previous fiscal year, according to data from the Economic Affairs Division (EAD).

 

Inflows increased sharply in August, with the country receiving $626.19 million in bilateral and multilateral financing, compared with $252.83 million in July.

 

Of the two-month total, $929.76 million was secured for budgetary support, including $96.98 million in programme loans and $191.26 million in short-term IBRD financing.

 

Overall, non-project financing amounted to $1.218 billion, while project-related loans stood at $484.56 million during the period.

 

Multilateral financing leads inflows

 

Multilateral loans and grants totalled $590.96 million during July-August. The International Development Association (IDA) provided $238.49 million, while the Islamic Development Bank (IDB) contributed $191.96 million in short-term financing. The Asian Development Bank (ADB) provided $95.76 million and the Asian Infrastructure Investment Bank (AIIB) contributed $13.35 million.

 

Bilateral loans and grants amounted to $35.2 million, with Germany providing $12.87 million, Saudi Arabia $8.90 million and France $8.52 million.

 

Pakistan also received bilateral grants of $12.63 million during the two-month period, mainly from Germany and Japan.

 

In August alone, development partners provided $337.96 million in loans, including $168.55 million from the IDB, $107.84 million from the IDA and $36.42 million from the ADB.

 

Commercial borrowing and NPC inflows

 

The EAD data also showed substantial inflows through commercial banks and Naya Pakistan Certificates (NPCs).

 

Foreign commercial borrowing through these channels was reported at around $1.34 billion during July-August, including $300 million from UBL Dubai, $182.24 million through conventional NPCs and $447.52 million through Islamic NPCs.

 

For August, commercial bank and NPC inflows were reported at $936.04 million, including $300 million from UBL Dubai, $200.85 million through Islamic NPCs and $84.92 million through conventional NPCs.