ISLAMABAD: Foreign loan inflows to Pakistan increased by more than 33 per cent to $2.293 billion in the first four months of 2025-26, mainly on the back of support from the International Monetary Fund (IMF).

This allowed the government to begin the new fiscal year on a positive note, unlike last year’s weak start due to the absence of IMF support.

The total inflows, both loans and grants, in July-October amounted to $2.293bn when compared to $1.723bn last year, an increase of 33.24pc. Inflows in October alone amounted to $471m, slightly higher than $414m in the same month last year.

Of the total, foreign loan inflows amounted to $1.822bn this year compared to $1.308bn last year, showing an increase of more than 39pc. Grants, on the other hand, amounted to just $50.56m compared to $87.66m of last year, a fall of 73pc.

The target for total foreign inflows for FY26 has been set at $19.9bn compared to $19.4bn last year.

In July-October of 2023, Pakistan was able to materialise more than $3.85bn mainly because of the signing of the nine-month Stand-By Agreement (SBA) with the IMF. As a result, the country received a major injection of $2bn in time deposits from Saudi Arabia. In fact, total inflows in July 2023 amounted to $5.1bn, which also included a significant inflow of $1.2bn from the IMF and $1bn from the UAE.

The Ministry of Economic Affairs on Wednesday said that it had received $2.293bn in total foreign inflows in 4MFY26 compared to $1.723m of the same month last year. The EAD said that out of $2.293bn inflows, the $773m were received for project financing, while non-project inflows amounted to $1.52bn.

This meant about $735m loans were received in July-October for budget support. This is despite the fact that the annual target for budget support this year was set at $13.5bn compared to $15bn last year.

The authorities were also able to materialise $400m against the Saudi oil facility in four months, at the rate of $100m each month, of the fiscal year against an annual target of $1bn.

Against a full-year target of $5bn from multilaterals (excluding IMF), Pakistan got $1.2bn in four months from multilateral lenders against $720m of the same period last year, when the annual target was $4.5bn.

Total inflows from bilateral lenders (other than three strategic friendly countries) in the two months of the year amounted to $449m against the annual target of $1.36bn, but were 73pc higher than $260m of last year, when the full year target was $523m.

Total inflows from bilateral and multilateral lenders amounted to $1.558bn in four months of this year against the annual target of $6.4bn. Last year, the government had secured $981m from bilateral and multilateral sources against the annual target of $5.05bn.

Inflows from overseas Pakistanis increased to $735m in the first four months of the current year in the shape of Naya Pakistan Certificates, up from $542m last year. The government has estimated a total of $609m through these certificates during the current year.

The full year $19.9bn target for the current fiscal year includes $6.4bn from both multilateral and bilateral lenders, including $5.05bn from multilaterals and $1.36bn from bilateral lenders, $400m in international bonds, $3.1bn foreign commercial loans, $5bn time deposit from Saudi Arabia and $4bn SAFE deposit from China.

Published in Dawn, November 20th, 2025