Pakistan receives $625m external financing in Jan 2026

March 13, 2026 (MLN): Pakistan secured external financing worth $625m in January 2026 from multiple financing sources, 58% lower than last month.

Cumulatively, in 7MFY26, the country only managed to secure $5.17bn external financing, the latest monthly report by the Economic Affairs Division (EAD) showed.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners totaled $237.44m in January and $3.06bn during 7MFY26.

Although these inflows helped to improve foreign exchange reserves, they fell significantly short of the government's budget estimates.

Foreign assistance obtained through multilateral sources totaled nearly $133.33m in January and $2.13bn in 7MFY26. While financing through bilateral development partners stood at $104.11m in January and $931.88m in 7MFY26.

The Asian Development Bank (ADB) retained its position as the leading multilateral donor, disbursing $56.53m in January, bringing its cumulative Jul-Jan disbursements to $624.59m. ADB's continued engagement reflects its sustained commitment to infrastructure and development initiatives across multiple provinces.

The International Development Association (IDA) disbursed $28.69m in January, with cumulative disbursements climbing to $608.08m for the seven-month period. Major IDA-supported projects continue to include the Dasu Hydropower Project and the Sindh Water Sector Agriculture & Transformation Project.

The International Bank for Reconstruction and Development (IBRD) contributed $30.59m in January, raising its seven-month cumulative total to $259m, primarily in support of power sector and urban development projects.

The Asian Infrastructure Investment Bank (AIIB) emerged as a notable multilateral contributor in January, disbursing $13.78m and bringing its cumulative Jul-Jan total to $72.95m.

Among bilateral donors, Saudi Arabia recorded the most significant January disbursement, contributing $100m during the month and bringing its cumulative seven-month total to $708.70m, the largest among all bilateral partners.

China remained an active bilateral contributor, with guaranteed loan disbursements of $13.84m in January, bringing that facility's Jul-Jan total to $269.42m. C

Japan disbursed $3.67m in January, bringing its cumulative seven-month total to $15.53m.

Germany contributed $0.30m in January, with its cumulative Jul-Jan total reaching $5.45m across multiple development projects.

Foreign commercial borrowing through the Naya Pakistan Certificate (NPC) scheme amounted to $286.30m in January 2026, comprising $82.40m under the conventional facility and $203.91m under the Islamic facility, bringing the cumulative NPC total to $1.49bn for July–January.

The government secured $88.12m through foreign commercial banks specifically Standard Chartered Bank London  in January, raising the seven-month total through this channel to $144.42m, against the government's substantially higher budget estimates for the fiscal year.

The International Monetary Fund (IMF) disbursements remained at $209.51m cumulatively, with no additional tranche recorded in January.

In terms of the purpose of financing, non-project aid in January amounted to $477.42m, including $374.43m in budgetary support, underscoring continued reliance on programme-based inflows to support macroeconomic stabilisation.

Cumulatively, non-project loans for July–January reached $3.27bn. Project-based disbursements stood at $148.29m in January, with a cumulative total of $1.90bn for the seven-month period.

The Islamic Development Bank's (IsDB) short-term credit facility, which had provided $483.78m during July–December in support of trade financing requirements, recorded no additional disbursement in January, keeping the cumulative total unchanged.

Major provinces, including Punjab, Sindh, and Khyber Pakhtunkhwa, continued to benefit from ongoing allocations across urban development, water management, education, and health sector projects.

Copyright Mettis Link News