Foreign economic assistance inflows rise nearly 20pc
Why this matters: local context for readers following news across Pakistan and the region.
ISLAMABAD: Foreign economic assistance (FEA) inflows to Pakistan surged by almost 20 per cent to $6.594bn in the first three quarters (July-March) of the current fiscal year, mainly on the back of programme support from the International Monetary Fund (IMF). Total inflows (excluding IMF disbursements), comprising both loans and grants, amounted to $6.594bn during the first nine months of the current fiscal year, up from $5.507bn in the same period last year, reflecting an increase of 19.7pc. Inflows in March alone stood at $731.3m, compared to $692m in February and $555m in the corresponding month last year, marking a 32pc increase. These inflows do not include the $1.2bn disbursed by the IMF in December and the additional $3bn in safe deposits from Saudi Arabia in March and April, bringing cumulative inflows in 9MFY26 to more than $9.7bn. Of the total inflows, foreign loan inflows in 9MFY26 amounted to $6.494bn, compared to $5.37bn in the corresponding period last year, showing an increase of almost 29pc. Grants, on the other hand, declined to just $100.3m during the nine-month period, compared to $135.6m last year, reflecting a 27pc decrease. The target for total foreign inflows for FY26 was set at $19.9bn in the 2025-26 budget, up from $19.4bn last year. Other than IMF payments, loans, grants in first nine months of FY26 amount to $6.59bn, up from $5.5bn in same period last year The Ministry of Economic Affairs also confirmed on Sunday that it had received $6.594bn in total foreign inflows during the first nine months of the fiscal year, compared with $5.507bn in the same period last year. Budgetary support The Economic Affairs Division stated that of the $6.594bn in inflows, $2.486bn was received for project financing, while non-project inflows amounted to $4.108bn. This means that about $2.449bn in loans was received during the nine months for budgetary support, despite the annual budget support target being set at $13.5bn, down from $15bn last fiscal year. The