Foreign assistance inflows into Pakistan have plummeted by over 55% to $2.7 billion during the first four months of the fiscal year 2025, compared to $6.05 billion in the same period last year. This significant decline is attributed to lending partners withholding financing due to delays in disbursements under the International Monetary Fund (IMF) program.
According to the latest Foreign Assistance Report from the Economic Affairs Division (EAD), total inflows for the period amounted to $1.72 billion, excluding $1 billion received from the IMF in late September. This brings the total to $2.72 billion, which is significantly below the annual target of $19.4 billion. In contrast, last year’s inflows during the same period reached $3.85 billion against an annual target of $17.6 billion.
Budgetary support loans accounted for $897 million of the total inflows, while $826 million was allocated to project financing. In comparison, the previous year saw $992 million in project aid and $2.53 billion in program loans.
Multilateral inflows saw a slight increase to $721 million from $597 million last year, with the World Bank contributing $364 million, followed by the Asian Development Bank and the Islamic Development Bank. However, bilateral disbursements fell to $260 million from $436 million last year, with contributions from China, France, and the United States amounting to $97 million, $90 million, and $38 million, respectively.
Commercial loans experienced a modest recovery, reaching $200 million, a slight improvement over last year when lenders were hesitant to finance Pakistan. However, this figure remains well below the government’s target of $3.8 billion for the year.
Additionally, $5 billion in time deposits from Saudi Arabia and $4 billion in China’s SAFE deposits have yet to be realized. These funds are critical for bridging the external financing gap under the IMF program.
Pakistan also received $542 million through Naya Pakistan Certificates, providing some relief amid the broader decline in foreign assistance.
