Commercial Borrowing and Overseas Pakistani Investment Boost Early FY27 Financing

ISLAMABAD, — September 23, 2026 — Pakistan received $1.703 billion in foreign economic assistance during the first two months of fiscal year 2026-27, up 23.61% from $1.377 billion during the same period last year, according to data from the Economic Affairs Division. The figure includes foreign loans and grants but excludes International Monetary Fund financing. (Business Recorder)

The increase was driven in part by a return to commercial borrowing. Pakistan received $300 million from United Bank Dubai during July and August, while overseas Pakistanis invested substantially more through Naya Pakistan Certificates than they did a year earlier. (Dawn)

Investments through Naya Pakistan Certificates reached about $630 million during the two-month period, compared with $365 million a year earlier, representing an increase of nearly 73%. The latest figures include $182 million through conventional certificates and $448 million through Islamic certificates. (Dawn)

The composition of external financing, however, changed considerably. Inflows from bilateral and multilateral lenders fell to about $626 million during July-August, down from $1.103 billion in the same period last year. Bilateral financing declined particularly sharply, falling to about $35 million. (Business Recorder)

Multilateral institutions provided about $591 million during the period. The International Development Association accounted for approximately $238 million, while the Islamic Development Bank provided about $192 million in short-term financing and the Asian Development Bank contributed nearly $96 million. (Business Recorder)

Of the total $1.703 billion in foreign economic assistance, about $1.218 billion came through non-project financing, while $484.56 million was received for project financing. The data also shows that around $929.76 million was associated with budgetary support, including programme loans and short-term financing. (Business Recorder)

China remained Pakistan’s largest bilateral lender during the two-month period, providing about $146.6 million, although no new Chinese financing was recorded in August. Germany, Saudi Arabia, France, Denmark, Japan and the United States also provided smaller amounts through bilateral loans and grants. (Business Recorder)

The Economic Affairs Division has listed a foreign economic assistance target of approximately $24 billion for the full 2026-27 fiscal year, compared with a $20 billion target for the previous year. Pakistan ultimately received slightly more than $16 billion in foreign economic assistance during FY2025-26. (Dawn)

The latest figures therefore show higher overall external financing at the beginning of the fiscal year, but with a different financing mix from last year. Commercial borrowing and Naya Pakistan Certificates have increased their contribution, while traditional bilateral and multilateral inflows have declined. (Dawn, Business Recorder)