Pakistan receives $437m external financing in September

October 23, 2025 (MLN): Pakistan secured external financing worth $436.66 million in September 2025 from multiple financing sources, 35.7% lower than last month and 26.4% lower than the same month last year, the latest monthly report by the Economic Affairs Division (EAD) showed.

The disbursements represent about 9% of the annual budget estimate of $19.92 billion, reflecting a moderate start to the fiscal year as inflows from multilateral partners dominated the financing landscape.

In September alone, multilateral lenders disbursed $157 million, while bilateral partners provided around $102 million, with the rest coming from non-project aid, primarily budgetary support facilities.

The World Bank Group (IDA and IBRD combined) led the month’s disbursements with $146 million, followed by the Asian Development Bank (ADB) at $27 million, and the Islamic Development Bank (IsDB) at $48 million, mainly under its short-term oil financing facility.

Meanwhile, Denmark made a notable bilateral contribution of $61 million in September for the Faisalabad Wastewater Treatment Project, making it the largest bilateral inflow of the month.

Cumulatively, during the first quarter of FY26, Pakistan secured $1.82 billion, including $939 million from multilateral sources and $335 million from bilateral donors, while non-project and program support totaled $542 million.

Among multilaterals, the World Bank (IDA and IBRD) remained the largest source, disbursing $432 million, followed by the ADB with $117 million, and the IsDB with $50 million.
On the bilateral side, China ($9.75m), Japan ($6.16m), Germany ($3.03m), and France ($8.5m) remained key contributors.

Non-project inflows included $300 million under the Saudi Oil Facility, $311 million from IsDB’s short-term oil credit line, and $541 million through Naya Pakistan Certificates.

These instruments continued to play a critical role in supporting Pakistan’s external liquidity position and budgetary financing needs, amid limited commercial borrowing and no new bond issuances during the period.

A significant portion of disbursements was directed toward post-flood rehabilitation, energy infrastructure, and social protection initiatives.
Notable projects included:

• Sindh Flood Emergency Rehabilitation and Housing Projects (IDA & IsDB funded),

• Dasu Transmission Lines and Power Distribution Enhancement, and

• National Health Support and BISP Social Protection Programs (ADB & World Bank supported).

These highlight a continued shift toward climate resilience, energy security, and social welfare development.

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