Pakistan received around $763 million in foreign loans and grants during July 2026, marking the first month of the new fiscal year and showing an increase from the $694.5 million secured during the corresponding month of the previous financial year.
According to data released by the Economic Affairs Division (EAD), the year-on-year increase was largely driven by stronger inflows through Naya Pakistan Certificates (NPCs). The rise in NPC proceeds offset a decline in financing received from both bilateral and multilateral development partners during the month.
Naya Pakistan Certificates Boost External Inflows
Pakistan attracted $343.99 million through conventional and Islamic Naya Pakistan Certificates in July, compared with $196.22 million recorded in July 2025. The increase highlights the growing contribution of NPCs to the country’s external financing requirements.
Islamic NPCs accounted for the larger portion of the inflows, generating $246.67 million, while conventional Naya Pakistan Certificates brought in another $97.32 million during the month.
The stronger NPC receipts played a key role in pushing overall foreign financing above the level recorded in the same month last year, despite weaker disbursements from traditional lenders.
China Remains a Major Bilateral Financing Source
Among bilateral partners, China provided $146 million in guaranteed loans to Pakistan during July 2026, making it one of the country’s most significant sources of bilateral financing.
However, total bilateral loans and grants from countries other than China remained considerably lower than a year earlier. Pakistan received $19.6 million in bilateral financing from other countries during July, compared with $118.4 million in the same month of the previous fiscal year.
The bilateral financing received during the month included $1.3 million from France, $9.94 million from Germany, $0.94 million from Japan and $7.42 million from Saudi Arabia.
Multilateral Financing Declines
Disbursements from multilateral development partners also recorded a decline in July. Pakistan received $252.83 million from multilateral creditors, compared with approximately $379.8 million during July of the previous financial year.
The Asian Development Bank (ADB) contributed $59.17 million, while the Asian Infrastructure Investment Bank (AIIB) provided $6.57 million.
The World Bank remained the largest multilateral financing source during the month. Pakistan received $130 million through the International Development Association (IDA) and an additional $29.22 million through the International Bank for Reconstruction and Development (IBRD).
Other International Lenders
The Islamic Development Bank (IsDB) provided $1.75 million during July, in addition to $22.71 million in short-term financing.
Meanwhile, the International Fund for Agricultural Development (IFAD) disbursed $2 million, while the OPEC Fund for International Development provided $0.76 million.
The financing data indicate that while conventional foreign assistance from bilateral and multilateral partners weakened at the start of the fiscal year, alternative sources—particularly Naya Pakistan Certificates—helped sustain Pakistan’s overall external inflows.
