By Qudsia Bano

China disbursed over $72 million in foreign economic assistance to Pakistan during the first eight months of the current fiscal year (FY26), supporting key infrastructure, energy and technology projects, according to official data.

The Ministry of Economic Affairs’ latest report shows that total disbursements from China reached $72.28 million during July–February FY26, reflecting continued engagement under bilateral cooperation frameworks.

The assistance was largely directed towards project-based financing, covering a range of strategic initiatives. Among the major projects supported during the period was the PAKSAT-MM1 satellite system, implemented by SUPARCO, which accounted for a significant portion of Chinese financing.

In addition, China continued to support the construction of the Chashma Nuclear Power Plant Unit-5 (C-5), one of the largest ongoing energy projects in Pakistan. The project represents a key component of long-term cooperation in the nuclear energy sector and contributes to expanding the country’s power generation capacity.

Chinese assistance also included grants for social and development projects. These covered initiatives such as the reconstruction of schools in former FATA areas, housing projects in Balochistan, and technical cooperation programmes aimed at strengthening institutional capacity.

The data shows that Chinese funding was provided through both loans and grants, depending on the nature of the project. While loans accounted for the larger share of disbursements, grant-based assistance supported targeted development interventions.

Sector-wise, the inflows were concentrated in energy, infrastructure and technology, reflecting the strategic orientation of Pakistan-China cooperation. Energy projects, particularly in the nuclear and power sectors, remained a major area of focus, alongside investments in space and communication infrastructure.

The report further indicates that Chinese disbursements were part of broader bilateral financing flows received by Pakistan during the period. Compared to multilateral inflows, bilateral contributions from individual countries, including China, were relatively smaller in aggregate terms but remained significant in specific sectors.

The continued disbursement of funds highlights the ongoing implementation of projects under existing agreements, with a focus on long-term infrastructure and capacity-building initiatives.

Credit: INP-WealthPk