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Foreign Loans to Pakistan Nearly Double in Early FY26

Pakistan’s foreign assistance inflows surged to $1.377 billion in the first two months of the current fiscal year, nearly doubling last year’s $714 million, as renewed support from the International Monetary Fund (IMF) bolstered the country’s external finances.

According to the Ministry of Economic Affairs, the increase was driven by $1.345 billion in foreign loans and $33 million in grants, with non-project loans for budget support jumping 235% to $912 million. Project financing also saw a modest 6% rise to $465 million.

August alone saw inflows of $680 million, up 152% from the same month last year, while July brought in $698 million, a 57% increase year-on-year.

The government also secured $200 million under the Saudi oil facility and $780 million from multilateral lenders, both outpacing last year’s figures. Inflows from overseas Pakistanis through Naya Pakistan Certificates rose to $365 million, compared to $259 million last year.

Pakistan has set an ambitious $19.9 billion target for total foreign inflows this fiscal year, banking on continued multilateral and bilateral support, commercial loans, and deposits from Saudi Arabia and China.



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