Pakistan received external financing worth $944.2 million in November 2024, representing a 127.6% increase compared to October and a 127.0% increase from November last year. The funding consists of $937.66 million in loans and $6.54 million in grants, according to the Department of Economic Affairs’ latest report.
Despite this increase, cumulative external financing during the first five months of fiscal year 2025 amounted to $2.67 billion, well below the annual budget estimate of $19.39 billion. In the last fiscal year, the government set a foreign aid target of $17.62 billion, but was able to achieve only $9.81 billion.
Major flows in November included $751.45 million from bilateral and multilateral development partners, contributing to a total of $1.73 billion disbursed during FY5 2025. Multilateral sources provided $743.33 million in November, while bilateral sources added $8.12 million.
Foreign commercial borrowing stood at $192.75 million in November and $734.9 million in FY25, facilitated by the Naya Pakistan certificate. However, no financing was secured through foreign commercial banks during this period, compared to the $3.78 billion expected in the budget for fiscal year 2025.
A large portion of November’s funding, $725.27 million, was allocated to non-project assistance, primarily program and budget support aimed at economic restructuring. Non-project assistance loans totaled $1.6 billion in the fifth fiscal year 2025.
The slower-than-expected inflows, while providing some relief to foreign exchange reserves, underscore the challenges facing achieving budget financing targets as Pakistan navigates economic stabilization efforts.