Pakistan received $1.703 billion in foreign loans and grants during the first two months of fiscal year 2026-27, excluding inflows from the International Monetary Fund (IMF), marking a 24% increase from $1.377 billion received during the same period last year.
Inflows in August reached $940 million, up 38% from $680 million in August last year. July inflows stood at $764 million, compared with $697 million recorded a year earlier.
The increase was mainly driven by a $300 million commercial loan and an additional $265 million in investments through Naya Pakistan Certificates (NPCs) by overseas Pakistanis.
No commercial loans were recorded during the first two months of FY26, as international commercial banks had remained cautious about lending to Pakistan amid economic challenges and weak credit conditions.
Overseas Pakistanis’ investments in NPCs rose nearly 73% to $630 million during July-August FY27 from $365 million a year earlier. The total included $182 million through conventional NPCs and $448 million through Islamic NPCs.
Meanwhile, inflows from multilateral and bilateral lenders declined 43.24% to $626 million from $1.103 billion in the corresponding period last year.
Bilateral inflows recorded the sharper decline, falling 85% to $35 million from $232 million. Assistance from multilateral lenders also decreased by 24% to $591 million from $781 million.
The government has set a foreign economic assistance target of around $24 billion for FY27, compared with $20 billion for FY26. Foreign assistance of slightly more than $16 billion was received during FY26.
Of the $1.7 billion received during July-August, around $485 million was allocated for project financing, while non-project inflows amounted to approximately $1.22 billion. About $258 million in loans were received for budget support during the two-month period.
Commercial lenders accounted for a significant portion of the inflows, while major multilateral institutions also provided substantial financing. China remained the largest bilateral source of assistance during the period.
