Pakistan Just Got $6.9 Billion in Foreign Loans During Tough 9 Months of FY24

The country borrowed just $6.899 billion from multiple financing sources during the first nine months (July-March) of the current fiscal year 2023-24 compared to $7.764 billion borrowed during the same period of 2022-23, representing 39 percent of the annual budget target

Borrowing options were evidently scarce due to unfavorable credit ratings and challenging conditions in the global financial markets despite support provided by the International Monetary Fund (IMF).

According to the Economic Affairs Division (EAD) data, the country received $218.53 million in March 2024 compared to $358.71 million in March 2023.

There is no mention of the $1 billion disbursed by the UAE. If the IMF and the UAE inflows are added, the total inflows could reach $9.799 billion during the first nine months of the current fiscal year.

The government has budgeted $2.4 billion from the International Monetary Fund (IMF) for the current fiscal year 2023-24 and received $1.9 billion of the $3 billion Stand-By Arrangement (SBA), however, the EAD data does not reflect it.

The $6.899 billion included $2 billion received from Saudi Arabia under the head of time deposit during July 2023. The data further showed that the government had budgeted estimates of $4.5 billion from the foreign commercial banks for the current fiscal year 2023-24, however, no money was received under this head during the first nine months of the current fiscal year.

The government had budgeted $1.5 billion for the issuance of bonds, however, the country has yet to issue the bonds, hence no amount has been received so far.

The government had budgeted $17.619 billion from multiple financing sources for the current fiscal year including $17.384 billion in loans and $234.60 million in grants.

The country received $781.48 million under the head of the “Naya Pakistan Certificate” during the first nine months of the current fiscal year 2023-24.

The country received $2.738 billion from multilaterals and $870.22 million from bilateral during July-March 2023-24. The non-project aid was $4.724 billion including $3.580 billion for budgetary support and project aid was $2.174 billion.

China disbursed $508.34 million under the head guarantee for the JF-17 B project funded by China National Aero-technology Import and Export Corporation (CATIC). China further disbursed 67.39 million in July-March against the government budget of $18.54 million for the current fiscal year.

The Asian Development Bank (ADB) disbursed $665.52 million during the period under review compared to the budgeted $2.086 billion for the fiscal year 2023-24.

Saudi Arabia disbursed $595.18 million against the budgeted $600 million under the head of oil facility during July-March 2023-24. Saudi Arabia disbursed another $62.03 million in the current fiscal year so far.

The USA disbursed $36.01 million in the first nine months against the budgeted $21.60 million for the fiscal year. Korea disbursed $24.81 million and France $39.89 million during the current fiscal year.

The IDA disbursed $1.292 million in July-March against the budgeted $1.489 billion for the current fiscal year and IBRD $163.15 million against the budgeted $840.36 million. The IsDB (Short-term) disbursed $200 million in July-March against the budgeted $500 million for the current fiscal year and AIIB disbursed $300.04 million, while IFAD disbursed $26.29 million against the budgeted $42.68 million for the current fiscal year.