Abdul Ghani

The energy and flood resilience sectors received the largest share of project financing disbursements during July–June 2024-25, according to the Annual Report on Foreign Economic Assistance issued by the Ministry of Economic Affairs.

Out of total foreign economic assistance disbursements amounting to US$ 12,144 million during the fiscal year, US$ 3,541 million was realized under project financing. The report provides a sector-wise breakdown of this project financing component, reflecting the allocation of funds across development sectors.

The Energy & Power sector received US$ 1,370 million, making it the largest recipient among all sectors under project financing during 2024-25. This allocation represented the highest share within the US$ 3,541 million project financing envelope.

Environment, climate and resilience-related initiatives accounted for US$ 689 million in project disbursements. Within this category, flood-related reconstruction and resilience activities following the 2022 floods were reported to have received US$ 591 million during the fiscal year.

Transport and Communication projects received US$ 201 million in disbursements under project financing. Urban and Rural Development accounted for US$ 287 million during the period.

The health sector received US$ 185 million in project disbursements, while water-related projects accounted for US$ 171 million. Finance and Revenue initiatives received US$ 128 million during 2024-25.

Disbursements to the agriculture sector totaled US$ 119 million, while education received US$ 113 million. Science and Technology projects were allocated US$ 101 million, while other sectors collectively received US$ 177 million under project financing.

The report states that sectoral distribution of project disbursements mirrors the active portfolio of ongoing development assistance projects in the country. Disbursements represent actual funds received during the fiscal year against both newly signed and previously committed agreements.

The Ministry of Economic Affairs compiles sectoral disbursement data through the Debt Management and Financial Analysis System (DMFAS), which records inflows from multilateral and bilateral partners as well as other financing sources.

The Annual Report on Foreign Economic Assistance 2024-25 documents that the energy sector and flood resilience initiatives together accounted for a substantial portion of project-based inflows, reflecting the sectoral allocation pattern of US$ 3,541 million disbursed under project financing during July–June 2024-25.

Credit: INP-WealthPk