Islamabad — Pakistan has recorded a sharp increase in foreign funding during the current fiscal year, with external inflows rising significantly compared to the same period last year, according to official data.
According to Beyond Time News, the Ministry of Economic Affairs reported that the country received $11 billion in external financing between July and April, marking an 83% increase from around $6 billion in the corresponding period last year.
Strong Rise in External Inflows
The increase in foreign funding was driven by both multilateral and bilateral sources, along with loan rollovers and deferred payment arrangements.
According to Beyond Time News, total inflows included $8.31 billion in non-project financing and $2.75 billion in project financing, reflecting broad-based external support.
Officials also reported that Pakistan received $120 million in grants, compared to $570 million in the same period last year.
April Sees Major Inflows
A significant portion of the inflows arrived in April 2026 alone.
According to Beyond Time News, the country received approximately $4.5 billion during the month, contributing heavily to the overall increase in external financing.
Key Bilateral and Multilateral Support
Several key partners contributed to Pakistan’s external financing needs during the period.
According to Beyond Time News, Saudi Arabia provided a $1 billion oil financing facility through deferred payment arrangements, while the Islamic Development Bank extended $480 million in lending support.
Multilateral institutions also played a major role, including:
- Asian Development Bank: $1.92 billion
- World Bank Group: $1.66 billion
Loan Rollovers Help Boost Inflows
Pakistan also benefited from the rollover of existing deposits from friendly countries.
According to Beyond Time News, $3 billion in Saudi deposits were rolled over, with additional rollovers from Saudi Arabia and China expected to reach $9 billion during the fiscal year.
These arrangements helped ease pressure on external financing requirements.
Repayments Also Continue
Despite higher inflows, Pakistan continued to service its external debt obligations.
According to Beyond Time News, the country repaid $3 billion to the United Arab Emirates in April 2026, reflecting ongoing debt management efforts.
Total External Inflows Estimate
Overall, the Ministry of Economic Affairs estimates total external inflows for the fiscal year at $19.39 billion.
According to Beyond Time News, the combined support from bilateral partners, multilateral lenders, and rolled-over deposits has played a key role in stabilizing external financing flows.
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Conclusion
Pakistan’s external financing position has shown a marked improvement this year, driven by higher bilateral support, multilateral lending, and deposit rollovers.
According to Beyond Time News, while inflows have increased significantly, repayments and reliance on external support continue to highlight underlying structural challenges in the economy.
