The country provisionally received $10.448 billion of foreign assistance in first eleven months (July-May) of the current fiscal year against the budgeted estimates of $8.09 billion for 2017-18. About 3/4th of this amount has been used for meeting external finances and for budgetary support.
The PML-N government had budgeted foreign assistance of $8.094 billion for 2017-18 including $7.692 billion loans and $401.78 million grants. EAD data shows that foreign assistance of $750 million was received in May from multilateral and bilateral donors.
China disbursed $1.64 billion in the current fiscal year (July-May) 2017-18 (including $138.66 million in May) against the budgeted $1.595 billion for the entire year. China released $116.71 million for Sukkur-Multan Motorway under China Pakistan Economic Corridor (CPEC) and $21.97 million for Havelian-Thakot KKH (CPEC).
Asian Development Bank (ADB) disbursed $722.89 million in the current fiscal year 2017-18 so far including $36.74 million in May against the budgeted estimates of $1.221 billion, International Bank for Reconstruction and Development (IBRD) $177.33 million including $3.7 million in May against the estimated $60.65 million, IDB(S-Term) $987.22 million against the estimated $1.550 billion, Asian Infrastructure Investment Bank (AIIB) $24.28 million, International Development Association (IDA) $267.62 million including $14.85 million in May against $975.27 million, Islamic Development Bank (IDB) $56.55 million, Japan $89.36 million, Saudi Arabia $55.27 million, UK released $169.85 million in grant, Italy $11.78 million and USA released $101.65 million in the current fiscal year 2017-18 including $13.54 million in May against the budgeted estimates of $117.56 million.
With 75% of the loans being used for the foreign reserves and budgetary support and no significant sum spent on economy-boosting sectors, it has become almost impossible to return the amounts without fresh borrowing.
The Economic Affairs Division (EAD) data revealed that government borrowed $493 million from foreign commercial banks in May, bringing the total to $3.494 billion under this head in the current fiscal year against the budgeted $1 billion.
The Pakistan Muslim League (PML-N) government had signed short-term commercial loan agreements of $3.947 billion in the current fiscal year 2017-18 with different foreign banks of which $3.494 billion have been received so far against the budgeted $1 billion for the entire current fiscal year.
The government procured $493 million from the Credit Suisse-led consortium of banks in May bringing the total to $748 million in the current financial year. The country had procured $255 million from the consortium in the first half of the fiscal year 2017-18. The consortium consists of Credit Suisse AG, United Bank Limited and Allied Bank Limited.
The government had procured $1 billion from China Development Bank and $200 million from Bank of China in April.
The government had procured $500 million commercial loans from Industrial and Commercial Bank of China Limited (ICBC) and $32.66 million from Standard Chartered Bank (SCB)-London in January 2018. Further $500 million was procured from Industrial and Commercial Bank of China Limited (ICBC) in October 2017.
Despite huge loans, the foreign currency reserves are slipping down, now at $10.1 billion, with International Monetary Fund (IMF) predicting the reserves to fall to $9.4 billion by the end of June.
The government had signed an agreement for procuring $200 million commercial loans from Standard Chartered Bank (SCB)-London on October 31 2017, and procured the entire amount including $32.66 million in January.
The country procured $267 million commercial loans from Citibank for budgetary support and $55.86 million from Dubai Bank in the current fiscal year.
The government also generated $2.5 billion by issuing Eurobonds and Sukkuk bonds in the current financial year.
The government has received no assistance from Norway and UNDP during the current fiscal year (July-May) 2017-18.