ISLAMABAD: Pakistan secured over $694.5 million in foreign funding during July 2025, reflecting a year-on-year increase of nearly $260 million compared to July 2024, when inflows stood at $436.4 million.
According to the Ministry of Economic Affairs, July 2025 marked the first month of the new fiscal year. While inflows showed an annual improvement, they dropped sharply on a monthly basis.
In June 2025, Pakistan had received $5.25 billion in external financing, but the figure fell to $4.55 billion in July, highlighting a significant shortfall.
Officials noted that despite the month-to-month decline, the positive year-on-year trend indicates stronger external commitments from lenders and development partners.
The report stressed that the government views this as a sign of renewed confidence in Pakistan’s economic management.
Economic analysts, however, remain cautious. They argue that the decline from June underlines Pakistan’s continued dependence on short-term disbursements and project-specific inflows rather than long-term sustainable financing.
Experts further emphasized that maintaining higher levels of external financing will be vital for Pakistan to meet debt obligations, safeguard foreign exchange reserves, and support the broader recovery process.
The government is expected to seek stronger inflows in the coming months through multilateral institutions and bilateral partners to ensure fiscal stability.
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