ISLAMABAD: The federal government during June-July 2024-25 has signed new agreements worth USD10.643 billion with multilateral and bilateral development partners, says a report titled Foreign Economic Assistance (FEA) released here on Wednesday by the Economic Affairs Division (EAD).
According to the FEA report, the commitments consist of USD5.061 billion from multilateral development partners, USD1.289 billion from bilateral development partners, and USD4.294 billion from foreign commercial banks.
The FEA is channelised primarily through two sources: multilateral and bilateral development partners to support developing economies in addressing fiscal imbalances, enhancing foreign exchange reserves, and financing development initiatives aimed at sustainable economic growth.
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The report presents an overview of FEA committed and disbursed to the Government of Pakistan from multilateral and bilateral development partners for the period July–June 2024-25, encompassing both loans and grants.
Data/information is obtained from the Debt Management and Financial Analysis System (DMFAS) maintained by the Ministry of Economic Affairs.
Out of these commitments, 40 percent was committed for budgetary support/balance of payment to strengthen foreign exchange reserves and stabilize the exchange rate, 15 percent as program financing, 25 percent project financing, and 20 percent commodity financing.
From July-June 2024-25, disbursements of USD12.144 billion were mainly under the project and program loans/grants from multilateral development partners, bilateral development partner sand international financial institutions (IFIs).
The ADB, World Bank and IsDB have been the largest contributors amongst the multilateral development partners, contributing USD2.130 billion, USD1.769 billion, and USD739 million, respectively.
On the bilateral side, China emerged as the largest contributor to the total disbursement during the specified period, disbursing USD584 million, followed by Saudi Arabia with USD221 million in disbursements.
As of 30th June 2025, Pakistan’s total external public debt amounted to USD91.795 billion.
The government paid USD13.320 billion during the period July-June 2024-25 on account of debt servicing of external public loans. Of this, principal repayments were USD9.729 billion and interest payments were USD3.591 billion.
Furthermore, the net transfers to the government’s external public debt resulted in a positive balance, amounting to USD1.713 billion indicating an increase in the external public debt stock.
Sectoral distribution of the disbursements under project financing i.e., USD3.541 million represents the sectoral priorities of the government and mirrors the sectoral composition of the active portfolio of the total project assistance in the country.
Copyright Business Recorder, 2026
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