ISLAMABAD: Foreign economic assistance (FEA) inflows to Pakistan surged by almost 20 per cent to $6.594bn in the first three quarters (July-March) of the current fiscal year, mainly on the back of programme support from the International Monetary Fund (IMF).

Total inflows (excluding IMF disbursements), comprising both loans and grants, amounted to $6.594bn during the first nine months of the current fiscal year, up from $5.507bn in the same period last year, reflecting an increase of 19.7pc. Inflows in March alone stood at $731.3m, compared to $692m in February and $555m in the corresponding month last year, marking a 32pc increase.

These inflows do not include the $1.2bn disbursed by the IMF in December and the additional $3bn in safe deposits from Saudi Arabia in March and April, bringing cumulative inflows in 9MFY26 to more than $9.7bn.

Of the total inflows, foreign loan inflows in 9MFY26 amounted to $6.494bn, compared to $5.37bn in the corresponding period last year, showing an increase of almost 29pc. Grants, on the other hand, declined to just $100.3m during the nine-month period, compared to $135.6m last year, reflecting a 27pc decrease. The target for total foreign inflows for FY26 was set at $19.9bn in the 2025-26 budget, up from $19.4bn last year.

Other than IMF payments, loans, grants in first nine months of FY26 amount to $6.59bn, up from $5.5bn in same period last year

The Ministry of Economic Affairs also confirmed on Sunday that it had received $6.594bn in total foreign inflows during the first nine months of the fiscal year, compared with $5.507bn in the same period last year.

Budgetary support

The Economic Affairs Division stated that of the $6.594bn in inflows, $2.486bn was received for project financing, while non-project inflows amounted to $4.108bn. This means that about $2.449bn in loans was received during the nine months for budgetary support, despite the annual budget support target being set at $13.5bn, down from $15bn last fiscal year.

The authorities also managed to mobilise $900m under the Saudi oil facility during the nine-month period, at a rate of $100m per month, against an annual target of $1bn.

Against a full-year target of $5bn from multilateral lenders (excluding the IMF), Pakistan received only $2.583bn in 9MFY26, down from $2.827bn in the same period last year, when the annual target was $4.5bn. Total inflows from bilateral lenders (excluding fixed deposits from three strategic friendly countries) amounted to $1.169bn in 9MFY26, against an annual target of $1.36bn. However, this was more than 300pc higher than the $358m received during the same period last year, when the full-year target was $523m.

Total inflows from bilateral and multilateral lenders stood at $3.752bn in 9MFY26, against an annual target of $6.4bn. Last year, the government secured $3.186bn from bilateral and multilateral sources, falling short of the annual target of $5.05bn.

Bank borrowings

The World Bank emerged as the top multilateral lender, with $1.205bn in disbursements during the first nine months, up from $980m last year, reflecting a 23pc increase. In contrast, the Asian Development Bank slipped to second place, with disbursements falling 64pc to $727m from $1.190bn last year. The Islamic Development Bank disbursed $542m during the first nine months of the fiscal year, compared to $523m in the corresponding period last year.

Becoming the single largest source of foreign loans, inflows from overseas Pakistanis rose to $2.037bn in the first three quarters of this fiscal year, up from $1.455bn last year, through Naya Pakistan Certificates (NPCs), registering a 40pc increase. This included $1.444bn in Islamic NPCs and $594m in conventional NPCs.

Published in Dawn, May 11th, 2026