Foreign Loans Up 200% in 3 Months

Pakistan received $5.45 billion in foreign economic assistance during July-September (Q1) FY2026-27, with international bonds accounting for almost $2.95 billion of the total, according to data shared by the Economic Affairs Division.

Key points

• While short-term Islamic Development Bank financing contributed $238.44 million, budgetary backing amounted to $4.192 billion.
• While commercial banks provided $300 million, the New Pakistan Certificates program contributed another $942.71 million.
• The International Development Association (IDA), part of the World Bank Group, provided approximately $359.04 million.
• This translates to a 201 percent year-on-year growth compared with approximately $1.81 billion noted in Q1 FY26.
• While bilateral partners provided around $58.10 million in the central government's financing figures, multilateral institutions disbursed approximately $894.17 million during the quarter.

This translates to a 201 percent year-on-year growth compared with approximately $1.81 billion noted in Q1 FY26. New Auto Policy May Be Approved Today.

Data demonstrates that total foreign economic assistance reached $5.449 billion during the quarter, equivalent to approximately Rs. 1.515 trillion.

In practice, the assistance included loans and grants received through bilateral and multilateral partners, commercial banks, international bondholders and the New Pakistan Certificates program.

International bondholders were the largest source of financing with $2.949 billion during the first quarter.

Together, these three sources accounted for more than $4.19 billion in financing during July-September.

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For context, the International Development Association (IDA), part of the World Bank Group, provided approximately $359.04 million. While the Asian Development Bank provided $153.55 million, the International Bank for Reconstruction and Development (IBRD) disbursed $83.79 million.

Other multilateral financing included $26.05 million from the Asian Infrastructure Investment Bank, $28.27 million from the Islamic Development Bank, $238.44 million from the Islamic Development Bank's short-term financing facility and $3.87 million from the International Fund for Agricultural Development.

Bilateral assistance included $20 million from France, $14.69 million from Germany, $12.87 million from Saudi Arabia, $5.02 million from South Korea and $2.26 million from Japan.

Separately, China provided $305.53 million in guaranteed bilateral financing during the quarter.

Non-project financing accounted for the bulk of external assistance. It totaled approximately $4.542 billion, compared with $907.71 million allocated to projects. Pakistan's GDP Expansion Revised Down to 3.65%.

While short-term Islamic Development Bank financing contributed $238.44 million, budgetary backing amounted to $4.192 billion. Program financing accounted for another $111.63 million.

In rupee terms, non-project financing totaled approximately Rs. While project-related assistance amounted to around Rs, 1.260 trillion. 254.80 billion. Stay Connected with ProPakistani.

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For now, foreign Loans Up 200% in 3 Months remains the part of the story worth watching, and further updates are likely as more details are confirmed.