By Ijaz Kakakhel

Pakistan received a total of $29.20 billion in foreign assistance during the five financial years from FY2021-22 to FY2025-26, with loans accounting for 97% of total disbursements and grants making up the remaining 3%, according to an official response available with Wealth Pakistan.

The figures show that the country received $28.31 billion in loans and $885.15 million in grants during the five-year period, reflecting the predominance of debt-based external financing.

Multilateral development partners emerged as the largest source of foreign assistance, contributing $24.10 billion, equivalent to 82.5% of total disbursements, while bilateral development partners provided $5.10 billion, accounting for 17.5%.

Among multilateral institutions, the World Bank was the largest contributor, disbursing $9.65 billion, followed by the Asian Development Bank (ADB) with $9.09 billion.

The Islamic Development Bank (IsDB) provided $3.31 billion in short-term commodity financing, while the Asian Infrastructure Investment Bank (AIIB) contributed $1.18 billion. The International Fund for Agricultural Development (IFAD) disbursed another $208.85 million during the period.

Among bilateral partners, Saudi Arabia emerged as Pakistan's largest source of assistance, providing $3.50 billion, followed by China with $592.24 million.

France contributed $313.72 million, while the United States provided $187.80 million. Japan's contribution stood at $152.80 million, followed by Germany with $88.88 million.

The official response described most of the loans as concessional, distinguishing them from commercial financing.

Regarding the utilisation of foreign assistance, the government clarified that responsibility for implementing externally financed projects rests with the respective executing agencies.

The Planning Commission monitors implementation progress through provincial Planning and Development Departments for provincial projects and the Ministry of Planning, Development and Special Initiative for federal projects.

Meanwhile, the Economic Affairs Division (EAD) coordinates with development partners and oversees the external financing portfolio, particularly estimated disbursements against financial commitments.

To address delays in disbursements, the Ministry of Economic Affairs conducts regular portfolio reviews in coordination with executing agencies, provincial planning departments and development partners.

The government further clarified that information regarding unutilised, diverted or surrendered funds is maintained by the Planning Commission and the respective executing agencies.

On financial accountability, the response stated that donor-funded projects are audited by the Auditor General of Pakistan and, where applicable, may undergo supervision missions, third-party evaluations and financial audits by development partners in accordance with financing agreements.

The Auditor General prepares and issues an annual audit plan at the beginning of each financial year, identifying entities and projects for scrutiny based on risk assessments and audit priorities.

Audit reports are implemented by the respective executing agencies and provincial governments through their Principal Accounting Officers.

Compliance with audit observations is subsequently reviewed through Departmental Accounts Committees and, where required, the Public Accounts Committee.

Credit: INP-WealthPk