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Pakistan starts new fiscal year with $695m foreign inflows

Pakistan starts new fiscal year with $695m foreign inflows

Web Desk
Aug 26, 2025

ISLAMABAD: Pakistan began the new fiscal year on a positive note, securing $695 million in foreign inflows during July 2025, a 59 percent jump compared with the same month last year.

According to official data, the inflows included $675m in loans and $19m in grants. This marks a clear improvement from July 2024, when the country received $426m in loans and $10.5m in grants.

Loans dominate inflows

The bulk of the funding came in the form of loans. Out of the total, $246m were channelled into project financing, which was lower than the $307m received for projects in July last year. However, non-project financing jumped to $448m, more than tripling from $129m in the same month of 2024.

One striking change was the surge in budget support loans. Pakistan secured $196m in this category in July, a dramatic rise from just $1.23m a year earlier. Officials described it as a record increase, even though the annual budget support target has been set lower this year at $13.5bn, compared with $15bn last year.

Multilateral and bilateral support

Multilateral lenders provided $380m in July, nearly double the $201m recorded in July 2024. Bilateral inflows, excluding Pakistan’s three strategic allies, stood at $118m, slightly higher than last year’s $108m. Together, multilateral and bilateral sources contributed $498m in July against the full-year target of $6.4bn.

The Saudi Oil Facility also released $100m, part of a $1bn commitment for the year.

Targets and comparisons

The government has set an ambitious $19.9bn target for foreign inflows in 2025-26. This includes $6.4bn from multilateral and bilateral partners, $400m from international bonds, $3.1bn in commercial loans, and large deposits from allies, including $5bn from Saudi Arabia and $4bn from China.

Last year, Pakistan had a head start due to a nine-month Stand-By Agreement with the IMF, which unlocked $5.1bn in July 2023, including $2bn from Saudi Arabia and $1.2bn from the IMF itself. This year’s inflows of $695m appear modest compared to that surge but are still markedly stronger than last July’s $436m.

Remittances through Naya Pakistan Certificates also helped, climbing to $196m in July from $128m last year. The government expects a total of $609m from this channel over the course of the year.