In August 2025, Pakistan was able to get external funds in the amount of 679.79 million, which was higher than in the previous year, but still, the country failed to achieve its annual target of FY2025-26.
According to the Economic Affairs Division (EAD), Pakistan received $679.79 million in external financing in August 2025, up 151 percent from August 2024 but 2.1 percent lower than July 2025. Out of this, $675.67 million came as loans while $18.86 million arrived as grants. August inflows accounted for 3.4 percent of the government’s annual external financing target of $19.39 billion for FY2025-26.
Mettis Global reported that in the first two months of FY26, Pakistan received $1.38 billion in external assistance, only 6.9 percent of the yearly goal. The slow pace raises concerns about meeting the Pakistan external financing target. Last fiscal year, the government had projected $17.62 billion but managed to secure only $9.81 billion by year-end.
Multilateral lenders remained the main source of inflows in August 2025. The amount was loaned by the World Bank Group (IBRD/IDA) in 228.43 million, and then the Asian Development Bank (ADB) in 89.5 million. The Islamic Development Bank (IsDB) issued a loan of $311.43 million, which is primarily in the form of short-term trade financing. In August and July-August 2025, bilateral as well as multilateral partners contributed 511.46 million and 1.01 billion, respectively.
Foreign commercial borrowing remained absent in August 2025. Pakistan raised $168.33 million through the Naya Pakistan Certificate, taking the two-month total to $364.55 million. However, no financing secured from foreign commercial banks, despite a $3.78 billion commercial borrowing target for FY26.
Out of the total August inflows, $448.06 million disbursed as non-project aid for budgetary support and economic restructuring. This amount also represents the total non-project aid received so far in FY26.
Pakistan is under pressure to take up more foreign loans and external funding as it has not managed to reach the annual target of less than 7 percent in the first two months. The FY2025-26 financing target will require policymakers to have better inflows of commercial banks and bilateral partners.
