The Economic Affairs Division (EAD) has released a report detailing the foreign grants and loans received by Pakistan in the first month of the current fiscal year, reported 24NewsHD TV channel Tuesday.

The report reveals a significant shortfall in expected external financial assistance, raising concerns over the country's economic stability.

In July 2024, Pakistan received only $436.3 million in external financial assistance, which is a mere 2.2% of the targeted $19.21 billion for the fiscal year. This marks a substantial decline compared to the same period last year, when the country secured $2.89 billion in external debt.

The report highlights several key setbacks, including the failure to secure crucial loans from Saudi Arabia and China. Pakistan was unable to obtain the anticipated oil borrowing facility from Saudi Arabia, and a $5 billion rollover loan from the Kingdom also did not materialize. Additionally, a $4 billion safe deposit from China and a $3.77 billion commercial loan were not received.

Despite these challenges, some financial assistance was provided by international institutions and countries. The World Bank contributed $111.88 million, while China extended a loan of $96.76 million. The Asian Development Bank (ADB) provided over $54 million, and the International Bank for Reconstruction and Development offered more than $20 million. Germany and Saudi Arabia also lent $3.5 million and $2.69 million, respectively.

Pakistan received $127.7 million through the Naya Pakistan Certificate scheme, while various countries provided a combined total of $107.6 million. The United States emerged as the largest grant provider, offering $4.442 million in assistance.

The EAD report underscores the growing financial challenges facing Pakistan, with only $425.9 million secured for various projects in July, far below the required levels to meet the country's economic targets. The shortfall in expected loans from key allies like Saudi Arabia and China could further strain the nation’s financial outlook in the months to come.