Pakistan continues to face extraordinary pressure to ensure large and sustained inflows of external financing. The foreign exchange reserves are at a moderately high level but have remained virtually unchanged at USD 14.5 billion since June 2025.

The first four months of 2025-26 have also witnessed a big change in the current account of the balance of payments. It has worsened from a deficit of USD 206 million in the first four months of 2024-25 to a deficit of USD 735 million in the corresponding period of the current financial year.

The Ministry of Economic Affairs has fortunately developed a system of monitoring the inflows of foreign economic assistance. Monthly reports showing the monthly and cumulative inflows are prepared and made publicly available.

The monthly report showing the inflows from July to October 2025 has been released recently. The information system developed by the Ministry of Economic Affairs is of a very high quality. The annual target and the actual monthly inflows are reported of various sources of credit and loans.

The multilateral sources include the various international development finance institutions like the Asian Development Bank, World Bank and the Islamic Development Bank. Bilateral sources, which are monitored, include especially Saudi Arabia, with the oil facility, China and a number of developed countries. Private inflows are in the form of flotation of bonds, loans from international commercial........

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