Abdul Ghani

Foreign economic assistance disbursements to Pakistan totaled US$ 12,144 million during July–June 2024-25, according to the Annual Report on Foreign Economic Assistance issued by the Ministry of Economic Affairs.

The report defines disbursements as the actual funds received by the government from development partners during a given period. It further notes that direct comparison between new commitments and disbursements is not advisable, as commitments are planned to be disbursed over several years, whereas disbursements during a specific fiscal year may include payments against both new and previously signed commitments.

Of the total US$ 12,144 million disbursed during 2024-25, multilateral development partners accounted for US$ 4,841 million, representing 40% of total disbursements. Bilateral development partners contributed US$ 4,298 million, which constituted 35% of total disbursements.

Foreign commercial banks disbursed US$ 1,087 million, accounting for 9% of total disbursements during the fiscal year. In addition, Naya Pakistan Certificates (NPC) contributed US$ 1,918 million, representing 16% of total disbursements.

The report indicates that disbursements were mainly received under project and program loans and grants from multilateral and bilateral partners, as well as international financial institutions.

Among multilateral partners, the Asian Development Bank (ADB), World Bank and Islamic Development Bank (IsDB) were identified as major contributors to disbursements during the fiscal year. On the bilateral side, China and Saudi Arabia were among the leading disbursement partners.

The Ministry of Economic Affairs compiles disbursement data through the Debt Management and Financial Analysis System (DMFAS), maintained by the Debt Recording and Reporting Center. The report states that the system records inflows received from multilateral and bilateral sources in accordance with established procedures under the Rules of Business, 1973.

Disbursements are structured across different financing modes, including budgetary support, program financing, project financing and commodity financing. The total figure of US$ 12,144 million reflects cumulative inflows across these categories during July–June 2024-25.

The Annual Report on Foreign Economic Assistance 2024-25 presents the disbursement volume as part of its overview of external inflows during the fiscal year, documenting the distribution of funds received from development partners, commercial banks and certificate-based instruments.

The reported US$ 12,144 million in disbursements during 2024-25 represents the total foreign economic assistance actually received by the government during the fiscal year under review.

Credit: INP-WealthPk