ISLAMABAD: Pakistan began the new fiscal year with foreign inflows of $695 million in July, a 59 per cent increase compared to the same month last year.<\/p>\n
This boost came from $675m in foreign loans and $19m in grants, reflecting a significant rise from last year\u2019s $426m in loans and $10.5m in grants.<\/p>\n
The uptick in inflows comes after the finalisation of Pakistan\u2019s Extended Fund Facility<\/a> (EFF) with the International Monetary Fund (IMF), which had been delayed following the approval of the federal budget<\/a>. Despite this, the government was able to achieve robust growth in both loan and grant categories in July.<\/p>\n The target for foreign inflows in the current fiscal year has been set at $19.9 billion, slightly higher than the $19.4bn target for the previous year. This includes $6.4bn from multilateral and bilateral lenders, $400m in international bonds, $3.1bn in foreign commercial loans, as well as substantial time deposits from Saudi Arabia and China.<\/p>\n Pakistan receives $695m in foreign loans and grants<\/p>\n In July 2023, Pakistan had secured over $2.89bn in foreign loans, largely due to the signing of a 9-month Stand-By Agreement (SBA) with the IMF. This resulted in substantial inflows, including $2bn from Saudi Arabia and $1.2bn from the IMF. Overall, total inflows for July 2023 amounted to $5.1bn.<\/p>\n<\/p>\n However, this year\u2019s foreign inflows were significantly higher, with July seeing $694.53m compared to $436.39m in the same month last year. The Ministry of Economic Affairs (EAD) confirmed that out of this amount, $246.47m were for project financing, a 20pc decline from the $307m received in July 2024. On the other hand, non-project financing surged to $448m in July 2025, up almost 250pc from $129m a year earlier.<\/p>\n A notable development this year was the sharp increase in budget support loans, which reached $196m in July, compared to just $1.23m in the same month of 2024. This marks a record increase in budget financing, despite the annual target for budget support being set at $13.5bn for the current year, lower than last year\u2019s target of $15bn.<\/p>\n Pakistan was also able to secure $100m from the Saudi Oil Facility in July, against an annual target of $1bn. The government\u2019s overall foreign financing targets include $5bn from multilateral lenders, excluding the IMF. In July, $380m was received from multilateral lenders, up from $201m in the same month last year, reflecting an increase in multilateral support despite the reduced full-year target of $4.5bn.<\/p>\n Bilateral lenders, excluding the three strategic allies, contributed $118m in July, slightly surpassing the $108m from the previous year. The annual target for bilateral inflows stands at $1.36bn. Total inflows from both bilateral and multilateral sources amounted to $498.3m in July, against the annual target of $6.4bn. Last year, Pakistan had received $309m from these lenders, with an annual target of $5.05bn.<\/p>\n Remittances from overseas Pakistanis also saw an uptick in July, with $196.2m received through Naya Pakistan Certificates, a sharp rise from $128m in July 2024. The government has projected a total of $609m in remittances from these certificates for the current fiscal year.<\/p>\n The government\u2019s ambitious $19.9bn target for foreign inflows in the current fiscal year includes $6.4bn from multilateral and bilateral sources, $400m in international bonds, $3.1bn in foreign commercial loans, and substantial contributions from strategic allies, including $5bn from Saudi Arabia in time deposits and $4bn in SAFE deposits from China.<\/p>\n Published in Dawn, August 26th, 2025<\/p>\n","protected":false},"excerpt":{"rendered":"ISLAMABAD: Pakistan began the new fiscal year with foreign inflows of $695 million in July, a 59 per…\n","protected":false},"author":2,"featured_media":110775,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-110774","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/110774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=110774"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/110774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/110775"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=110774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=110774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=110774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}