Abdul Ghani

The government of Pakistan signed new foreign economic assistance agreements amounting to US$ 10,643 million during the period July–June 2024-25, according to the Annual Report on Foreign Economic Assistance issued by the Ministry of Economic Affairs.

The report states that these new commitments were formalized after the signing of financing instruments with development partners and financial institutions. Of the total US$ 10,643 million committed during 2024-25, US$ 8,654 million was secured for federal projects and programs, while US$ 1,989 million was allocated for provincial projects and programs.

The composition of the total commitments shows that US$ 5,061 million was obtained from multilateral development partners, US$ 1,289 million from bilateral development partners, and US$ 4,294 million from foreign commercial banks.

Among multilateral partners, the Asian Development Bank (ADB) emerged as the largest source of new commitments, providing US$ 2,206 million, equivalent to 44% of the total multilateral commitments. The World Bank committed US$ 1,942 million, representing 38% of multilateral commitments, while the Islamic Development Bank (IsDB) committed US$ 892 million, accounting for 18% of the multilateral share.

The report explains that new commitments represent the amounts agreed upon during the observed period, which are expected to be disbursed in the short to medium term depending on the execution period of projects and programs. Short-term disbursements are defined as those expected within 12 months, while medium-term disbursements typically span one to three years and may extend up to five years.

The Ministry of Economic Affairs records commitments after due diligence and consultations with key stakeholders, including the Finance Division, Law and Justice Division, and the relevant sponsoring or executing agencies at federal and provincial levels. Foreign loans signed by the Finance Division, including commercial financing and funds raised through capital markets such as Eurobonds and Sukuk, are also recorded as commitments in the Ministry’s database.

According to the report, the data presented are sourced from the Debt Management and Financial Analysis System (DMFAS), maintained by the Debt Recording and Reporting Center under the Ministry of Economic Affairs.

The Annual Report on Foreign Economic Assistance 2024-25 notes that foreign economic assistance includes concessional loans, grants and technical assistance obtained from multilateral and bilateral partners to support development objectives, fiscal requirements and external financing needs.

The total commitments of US$ 10,643 million during July–June 2024-25 reflect agreements signed with multilateral institutions, bilateral partners and foreign commercial banks, forming part of the government’s external financing arrangements during the fiscal year under review.

Credit: INP-WealthPk