Foreign inflows to Pakistan rose to $695m in July 2025, a 59% increase, with strong multilateral and bilateral support boosting finances.
According to official data, the inflows included $675m in loans and $19m in grants, up from $426m and $10.5m respectively in July 2024. The improvement follows the finalization of Pakistan’s Extended Fund Facility (EFF) with the IMF, which had been delayed due to the federal budget process.
For FY2025-26, the government has set an annual foreign inflows target of $19.9 billion, slightly higher than last year’s $19.4bn. The projection includes $6.4bn from multilateral and bilateral lenders, $400m through international bonds, $3.1bn from foreign commercial loans and significant deposits expected from Saudi Arabia ($5bn) and China ($4bn).
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July 2025 Breakdown
- Project financing: $246.5m (down 20% YoY)
- Non-project financing: $448m (vs. $129m last year)
- Budget support loans: $196m (vs. just $1.23m in July 2024)
- Saudi Oil Facility: $100m (annual target $1bn)
- Multilateral lenders: $380m (up from $201m in 2024)
- Bilateral lenders: $118m (slight increase from $108m)
- Combined bilateral & multilateral inflows: $498.3m (vs. $309m last year)
Meanwhile, remittances through Naya Pakistan Certificates climbed to $196.2m, compared to $128m in July 2024. The government expects $609m through this channel during the fiscal year.
While July 2023 inflows were far larger at $5.1bn, largely due to the IMF’s Stand-By Agreement unlocking Saudi and IMF support, the July 2025 performance shows steady recovery.
With an ambitious $19.9bn target, Pakistan is relying on a mix of multilateral and bilateral financing, commercial loans, bond issuances and deposits from key allies to manage its external financing needs.
