Islamabad, Nov 26: Foreign assistance inflows into Pakistan plummeted by over 55% during the first four months of FY25, reaching just $2.7 billion, down from $6.05 billion in the same period last year. This decline is primarily due to delays in disbursements under the International Monetary Fund (IMF) program, with lending partners hesitant to release financing.
According to the Economic Affairs Division (EAD), total inflows for the period amounted to $1.72 billion, excluding the $1 billion received from the IMF in late September. The total inflows, including the IMF funds, reached $2.72 billion, which is significantly lower than the annual target of $19.4 billion. In comparison, Pakistan received $3.85 billion during the same period last year, against an annual target of $17.6 billion.
The breakdown of inflows shows that budgetary support loans accounted for $897 million, while project financing amounted to $826 million. In contrast, last year’s project aid stood at $992 million, with program loans totaling $2.53 billion.
Multilateral inflows saw a slight increase to $721 million, up from $597 million last year. The World Bank contributed the largest share, with $364 million, followed by the Asian Development Bank and the Islamic Development Bank. Bilateral disbursements dropped to $260 million, compared to $436 million in the previous year. China, France, and the United States contributed $97 million, $90 million, and $38 million, respectively.
Commercial loans experienced a modest recovery, with $200 million in financing, up from last year’s lackluster performance. However, this figure remains far below the government’s $3.8 billion target for the year.
Additionally, $5 billion in time deposits from Saudi Arabia and $4 billion from China’s SAFE deposits have yet to materialize, adding to the strain on Pakistan’s external financing gap under the IMF program. Pakistan also received $542 million through Naya Pakistan Certificates.
