Pakistan Gets Another $4.5 Billion in Foreign Loans

Pakstan provisionally received $4.565 billion .i.e. 57 percent of budgeted estimates of foreign assistance from multilateral and bilateral donors (July-January) in the current financial year against $4.28 billion during the same period of last year.

The Economic Affairs Division (EAD) revealed that government borrowed $300 million from Industrial and Commercial Bank of China Limited in the month of January, bringing the total borrowing from commercial banks to $1.2 billion in the first seven months of the current fiscal year.

Loans from China

Ministry of Finance (MoF) has finalized arrangements for $600 million commercial loan from two Chinese banks to be utilized for balance of payments and budgetary support and received $300 million in January.

The country borrowed $200 million from Noor Bank PJSC for budgetary support against the budgeted $100 million and $700 million from China Development Bank as non-project aid during the month of September.

In addition, the government issued Sukuk of one billion dollars at a 6.5 percent rate of return during the period under review. The government has also borrowed $19 million from Asian Infrastructure Investment Bank (AIIB) in the current financial year which was not budgeted as per the EAD documents.

The country received $440.92 million in the month of January including $422.43 million loans and $18.49 million grants. The latest figures show that the country provisionally received $4.375 billion in loans and $190.61 million grant in the current fiscal year.

Government to Receive $8 Billion in Foreign Assistance

The government has budgeted foreign assistance of $7.998 billion for 2016-17 including grants and loans against $9.18 billion budgeted for 2015-16. The budgeted estimates include a significant amount of $2.005 billion from commercial banks for 2016-17.

Pakistan received $857.44 million from China in the first seven months of the current fiscal year including $9.48 million in the month of January, surpassing the budgeted $572.3 million for the current financial year. The country has received $561 million during the same period of last year.

Details About Foreign Loans

Asian Development Bank (ADB) disbursed $709.75 million in the current financial year including $35.17 million in the month of January against the budgeted estimates of $1048.2 million. The total disbursed amounts from different associations and countries for the current financial year stood at:

  • International Development Association (IDA) $131.8 million
  • IDB (S-Term) $212 million
  • USA $51.78 million
  • International Bank for Reconstruction and Development (IBRD) $144.2 million
  • UNHCR $0.49 million
  • IDB $30.15 million
  • Japan $42.8 million
  • UK $131 million

The government received no assistance from the following countries and organizations during the period under review:

  • EU
  • France
  • Korea
  • Norway
  • Oman
  • Saudi Arabia
  • UNDP
  • Organization of the Petroleum Exporting Countries (OPEC)