By Qudsia Bano

Multilateral development partners remained the largest source of external financing for Pakistan during the first eight months of the current fiscal year (FY26), according to official data.

The Ministry of Economic Affairs’ latest report shows that multilateral disbursements reached about $2,373.63 million during July–February FY26, accounting for a significant share of total foreign economic assistance received during the period.

Key multilateral contributors included the World Bank Group, Asian Development Bank (ADB), Islamic Development Bank (IsDB), Asian Infrastructure Investment Bank (AIIB), and other institutions. These inflows were provided in the form of both loans and grants across a range of sectors and programmes.

Among multilateral sources, the World Bank Group — comprising the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) — remained a major contributor. Disbursements from IBRD amounted to approximately $350.67 million, while IDA contributed around $722.03 million during the period under review.

The Asian Development Bank also maintained a significant presence, with total disbursements of about $662.75 million during July–February FY26. These inflows supported a variety of projects and programmes, including infrastructure development, energy, transport and public sector initiatives.

Similarly, the Asian Infrastructure Investment Bank (AIIB) disbursed approximately $76.11 million, while the Islamic Development Bank (IsDB) and its short-term financing window also contributed to overall multilateral inflows.

The data shows that multilateral assistance was channelled into both project and non-project categories. Project-related financing supported infrastructure, energy, water resources, transport and social sector initiatives, while non-project inflows included programme financing and other forms of support.

Compared with bilateral inflows, multilateral disbursements constituted a larger share of total external assistance during the period. Bilateral contributions, although spread across several partner countries, remained lower in aggregate terms.

The report further indicates that multilateral financing was delivered through a mix of loans and grants, with loans forming the dominant component. These disbursements were made in the form of cash, in-kind support, third-party payments and capital injections, depending on the financing arrangement.

A detailed breakdown of project-level disbursements shows that multilateral institutions supported a wide range of initiatives, including power generation and transmission projects, water resource development, transport infrastructure, urban development, and social sector programmes.

The data highlights the central role of multilateral institutions in Pakistan’s external financing framework during FY26, with these partners providing a substantial portion of total foreign economic assistance across multiple sectors and programmes.

Credit: INP-WealthPk