Pakistan sees sharp rise in external funding, up 90% in February

Pakistan has witnessed a significant surge in external funding, with inflows rising sharply by 90 percent on an annual basis in February 2026, according to the latest report released by the Ministry of Economic Affairs.

The report highlights that external funding increased by 18.36 percent during the first eight months of the current fiscal year, signalling improved financial inflows and support from international partners.

According to official figures, Pakistan received a total of $5.862 billion in external funding from July 2025 to February 2026. This marks a notable increase compared to $4.9528 billion received during the same period in the previous fiscal year.

In February 2026 alone, the country secured $692 million in external financing, a substantial jump from $364.1 million recorded in February 2025, reflecting renewed confidence among lenders and partner countries.

The federal government has projected total external financing of more than $19.77 billion for the ongoing fiscal year, aiming to stabilize foreign exchange reserves and support economic growth.

The report reveals that an estimated $9 billion in deposits from Saudi Arabia and China is expected during the current fiscal year. Out of this, Pakistan anticipates receiving $5 billion from Saudi Arabia and $4 billion from China in the form of safe deposits to strengthen its financial position.

Economic experts view the increase in external funding as a positive development but stress the importance of ensuring effective utilisation and sustainable debt management to avoid long-term fiscal challenges.

The rise in inflows comes at a crucial time as Pakistan continues efforts to stabilise its economy and meet its external financing requirements.