Pakistan receives $692m external financing in February

March 25, 2026 (MLN): Pakistan secured external financing worth $692m in February 2026 from multiple financing sources, approximately 10.7% higher than last month. Cumulatively, in 8MFY26, the country managed to secure $5.86bn in external financing, the latest monthly report by the Economic Affairs Division (EAD) showed.

Going into details made available by EAD, disbursements from bilateral and multilateral development partners totalled $353.27m in February and $3.41bn during 8MFY26.

Foreign assistance obtained through multilateral sources totalled nearly $246.94m in February and $2.37bn in 8MFY26. Financing through bilateral development partners stood at $106.33m in February and $1.04bn in 8MFY26.

The International Development Association (IDA) emerged as the leading multilateral contributor in February, disbursing $113.95m, with cumulative Jul–Feb disbursements climbing to $722.03m. 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) posted a notable disbursement of $91.68m in February, raising its eight-month cumulative total to $350.67m, primarily in support of power sector and urban development projects.

The Asian Development Bank (ADB) disbursed $38.16m in February, bringing its cumulative Jul–Feb disbursements to $662.75m. ADB's continued engagement reflects its sustained commitment to infrastructure and development initiatives across multiple provinces.

The Asian Infrastructure Investment Bank (AIIB) contributed $3.16m in February, with its cumulative Jul–Feb total reaching $76.11m.

Among bilateral donors, Saudi Arabia again recorded the most significant February disbursement, contributing $101.98m during the month and bringing its cumulative eight-month total to $810.43m  the largest among all bilateral partners. China recorded no fresh bilateral or guaranteed loan disbursement in February, keeping its cumulative totals unchanged at $72.28m and $269.42m respectively.

Japan disbursed $3.87m in February, bringing its cumulative eight-month total to $19.40m. Germany contributed $0.47m in February, with its cumulative Jul–Feb total reaching $5.87m.

Foreign commercial borrowing through the Naya Pakistan Certificate (NPC) scheme amounted to $281.27m in February 2026, comprising $86.65m under the conventional facility and $194.62m under the Islamic facility, bringing the cumulative NPC total to $1.77bn for July–February.

The government secured $57.48m through foreign commercial banks specifically Standard Chartered Bank London in February, raising the eight-month total through this channel to $201.90m, 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 February.

In terms of the purpose of financing, non-project aid in February amounted to $460.05m, including $338.75m in budgetary support and $100m through the SFD Oil Facility, underscoring continued reliance on programme-based inflows to support macroeconomic stabilisation.

Cumulatively, non-project loans for July–February reached $3.73bn. Project-based disbursements stood at $231.97m in February, with a cumulative total of $2.13bn for the eight-month period.

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

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