Pakistan Receives $1.7bn in Foreign Economic Assistance in Two Months

Pakistan’s foreign economic assistance (FEA) inflows rose nearly 24 per cent during the first two months of fiscal year 2026-27.

The inflows reached $1.703 billion during July-August. The figure excludes financing from the International Monetary Fund (IMF).

According to data from the Ministry of Economic Affairs (MEA), Pakistan received $1.377bn during the same period last year. The latest figure represents a 24pc increase.

August Records Stronger Inflows

Foreign economic assistance reached $940 million in August alone. The amount was 38pc higher than the $680m recorded in August last year.

July inflows stood at $764m. The figure compared with $697m during the same month a year earlier.

Commercial borrowing provided a major boost to the latest inflows. United Bank Dubai provided a $300m commercial loan during the period.

Pakistan Food Imports Rise 2.23pc in First Two Months of FY27

Overseas Pakistanis also increased their investment in Naya Pakistan Certificates (NPCs). Investments rose by almost 73pc to $630m during the first two months of FY27.

The figure stood at $365m during the same period last year.

Naya Pakistan Certificate Investment Rises

The latest NPC investment included $182m through conventional certificates. Islamic Naya Pakistan Certificates attracted another $448m.

The MEA has reported conventional and Islamic NPC inflows separately for the first time.

Pakistan recorded no commercial loans during the first two months of FY26. Commercial banks had largely avoided lending to the country amid economic challenges and weak credit ratings.

Multilateral and Bilateral Financing Declines

Despite the rise in overall FEA, financing from multilateral and bilateral lenders declined sharply.

Combined inflows from these sources fell 43.24pc to $626m. They stood at $1.103bn during the same period last year.

Bilateral assistance recorded the biggest decline. Inflows fell 85pc to $35m from $232m a year earlier.

Multilateral financing also decreased. It fell 24pc to $591m from $781m during the comparable period.

Government Targets $24bn in FEA

The government has set a foreign economic assistance target of around $24bn for FY27.

The target compares with $20bn for FY26. Pakistan received slightly more than $16bn during FY26, according to the MEA.

The ministry said $485m of the July-August inflows went toward project financing.

Non-project financing accounted for $1.22bn.

The figures also indicate that Pakistan received around $258m in loans for budget support during the first two months of FY27.

United Bank Dubai Leads Lending

United Bank Dubai emerged as the largest lender during the period. It provided $300m in financing.

The World Bank followed with $286m. The Islamic Development Bank provided another $191m.

China ranked fourth among all lenders. It remained the largest bilateral source, providing $146m in assistance.

The Asian Development Bank contributed $97m during the two-month period.