Abdul Ghani

China disbursed $1.75 million to Pakistan in August 2025 under ongoing development assistance programs, according to the Monthly Disbursement Report for August 2025 issued by the Ministry of Economic Affairs.

The report available with Wealth Pakistan shows that the inflows from China in August were spread across grants and loans tied to specific projects in social and infrastructure sectors. These allocations covered initiatives in housing reconstruction, education rehabilitation, transport improvement, and technical cooperation.

The Ministry’s tables list a combined inflow of $1.75 million from Chinese sources in August. The financing was directed toward projects supporting the reconstruction of damaged schools in Khyber Pakhtunkhwa, the construction of houses in Balochistan under post-disaster rehabilitation, and technical programs connected with the transport and research sectors. These disbursements, though modest in size, reflect targeted support to priority schemes identified in Pakistan’s development framework.

The report further details that in July 2025, China released $6 million in development financing. This larger amount was utilized for housing and flood recovery initiatives in Balochistan as well as rehabilitation projects on segments of the national highway network. Together with August’s $1.75 million, the cumulative inflows from China during the first two months of FY2025-26 amounted to $7.75 million.

The Ministry’s disbursement data indicates that while Chinese inflows are smaller in absolute terms compared to some other bilateral partners, the financing has been directed consistently toward critical social and infrastructure projects that carry direct benefits for affected populations and connectivity improvements.

The report classifies the Chinese inflows under project aid, which includes both loans and grants. Housing-related allocations are highlighted in the Balochistan component, while education support is focused on school reconstruction programs in KP. Transport-linked projects are recorded under infrastructure development, and some allocations are noted for technical initiatives connected to research and mapping activities.

The Ministry’s tables show that these allocations form part of the broader $3,111.88 million in project aid received by Pakistan from all development partners in July–August 2025. China’s $7.75 million contribution is specifically noted within this total, indicating Beijing’s participation in Pakistan’s ongoing project portfolio during the current fiscal year.

According to the report, each project had a corresponding budget estimate (BE) for FY2025-26, with disbursements recorded against those allocations in the first two months. For instance, housing and school reconstruction projects carried annual allocations in foreign assistance, and the inflows from China in July and August were booked accordingly in the Ministry’s official accounts.

The document emphasizes that while Pakistan received nearly $19.92 billion in total inflows during July–August, a significant portion was in the form of non-project assistance, such as deposits and budgetary support. In contrast, project-specific inflows like those from China represent the long-term development side of the financing framework, focused on rebuilding infrastructure, enhancing education, and improving living conditions in disaster-hit regions.

Credit: INP-WealthPk