Pakistan Receives $16 Billion In External Financing During FY2025-26

ISLAMABAD: (Finance Reporter) – Pakistan received more than $16 billion in external financing during the 2025-26 fiscal year, with the majority of the funds used to meet non-development and budgetary requirements, according to the Economic Affairs Division’s annual report.

The report showed that nearly 79 percent of the external financing was allocated to non-development expenditures, while only a limited portion was directed toward development projects.

Almost 99 percent of the external assistance came in the form of loans, highlighting the country’s continued dependence on external borrowing. Grants remained minimal, with Pakistan receiving only $149.53 million during the fiscal year.

Out of the total financing, $12.7 billion was utilized for project financing and budgetary support, whereas $3.43 billion was allocated for development-related projects.

According to the report, Pakistan secured $5.03 billion from multilateral financial institutions. Saudi Arabia contributed $3 billion as a time deposit, while the government raised $3.05 billion through National Prize Bonds.

The report also stated that Pakistan borrowed $1.90 billion from commercial banks and received $1.356 billion from bilateral partner countries during the fiscal year.

The International Monetary Fund (IMF) provided $420 million in budgetary support, while a Chinese bank extended $1.7 billion for the same purpose.

In addition, Pakistan received a $392.82 million loan from China to help finance the Chashma Nuclear Power Plant Unit-5 (Chashma-5) project.

The report underscores Pakistan’s continued reliance on external financing to meet fiscal and budgetary needs, while a comparatively smaller share of foreign funds was invested in long-term development initiatives.