Foreign Loans Jump 24% to $1.7 Billion in Jul-Aug 2026

Foreign economic assistance inflows to Pakistan rose 24 percent to $1.7 billion during the first two months of fiscal year 2026 27 as the administration resumed commercial borrowing.

Key points

• Overseas Pakistanis' investments in Naya Pakistan Certificates rose almost 73 percent to $630 million during the first two months of FY2027 from $365 million a year earlier.
• The administration has set a foreign economic assistance target of concerning $24 billion for FY2027, compared with $20 billion for FY2026.
• In contrast, inflows from multilateral and bilateral lenders fell 43.24 percent to $626 million from $1.103 billion.
• Of the $1.7 billion received during July and August, $485 million was for project financing and $1.22 billion was classified as non project inflows.
• China was the fourth largest lender overall and the largest bilateral lender with $146 million, followed by the Asian Development Bank with $97 million.

Total inflows, including loans and grants but excluding the International Monetary Fund, reached $1.703 billion in July and August, compared with $1.377 billion during the same period last year.

While July inflows rose to $764 million from $697 million, according to data noted by the Ministry of Economic Affairs, inflows in August alone rose 38 percent to $940 million from $680 million a year earlier.

Farmers Threaten to Skip Wheat Sowing Without Rs. 5, 000 Backing Rate.

For context, the growth was mainly driven by a $300 million commercial loan from United Bank Dubai and an further $265 million in investments in Naya Pakistan Certificates by overseas Pakistanis.

As commercial banks had stayed away from Pakistan for a number of years against the backdrop of economic challenges and a subdued credit rating, there were no commercial loan inflows during the first two months of FY2026.

Overseas Pakistanis' investments in Naya Pakistan Certificates rose almost 73 percent to $630 million during the first two months of FY2027 from $365 million a year earlier. This included $182 million through conventional certificates and $448 million through Islamic certificates. Iran War May Hit Pakistan Worker Remittances: ADB.

In contrast, inflows from multilateral and bilateral lenders fell 43.24 percent to $626 million from $1.103 billion. While multilateral inflows declined 24 percent to $591 million from $781 million, bilateral inflows dropped 85 percent to $35 million from $232 million.

Meanwhile, the administration has set a foreign economic assistance target of concerning $24 billion for FY2027, compared with $20 billion for FY2026. According to the Ministry of Economic Affairs, Pakistan received slightly more than $16 billion during FY2026.

Of the $1.7 billion received during July and August, $485 million was for project financing and $1.22 billion was classified as non project inflows. This included regarding $258 million in loans for budget backing.

United Bank Dubai was the largest lender during the period with $300 million, followed by the World Bank with $286 million and the Islamic Development Bank with $191 million. China was the fourth largest lender overall and the largest bilateral lender with $146 million, followed by the Asian Development Bank with $97 million. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover.

Add as a preferredSource on Google Follow on Google News Join WhatsApp.

Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.

For now, foreign Loans Jump 24% to $1.7 Billion in Jul remains the part of the story worth watching, and further updates are likely as more details are confirmed.