Pakistan’s Budgeted Loans & Grants Have Decreased by 36% Since July 2018

Pakistan has borrowed $1.584 billion of the budgeted estimates of foreign assistance in the first four months (July-October) of the current financial year, against $2.45 billion during the same period last year (2017-18), showing a reduction of about 36 percent.

The latest data of Economic Affairs Division (EAD) shows that the PML-N government had estimated foreign assistance of $9.69 billion for 2018-19 including $394.34 million in grants and $9.297 billion in loans.

The country received $11.486 billion against the budgeted assistance of $8.094 billion for 2017-18 including $3.716 billion from foreign commercial banks.

According to the latest figures, the country provisionally received $410.34 million including $402.69 million in loans and $7.64 million in grants in October.

The Pakistan Tehreek-e-Insaf (PTI)-led government borrowed $160 million from foreign commercial banks in October, bringing the total to $399.5 million in the current fiscal year (July-October) 2018-19, compared to $1.022 billion during the same period of last year.

The country received $159.5 million in October from Dubai Bank. Noor Bank disbursed $20 million in July out of the total committed amount of $130 million. The Suisse AG also disbursed $50 million out of its total commitment of $750 million in July.

The country received $170 million in September from consortium-led by Suisse AG, UBL and ABL. Asian Development Bank (ADB) disbursed $31.73 million in October against the budgeted estimates of $1.38 billion.

The country received $101.85 million from China in October, bringing the total to $528.14 million in the current fiscal year against the budgeted estimate of $840.99 million. This amount includes;

  • $166 million for the Orange Line Metro Project,
  • $94.86 million for the Sukkur-Multan section of China-Pakistan Economic Corridor’s (CPEC),
  • $21.85 million for Havelian-Thakot road (CPEC)
  • $2.8 million for construction of cross-border optical fiber cable system (CPEC) till September.
  • $21.9 million was released for Havelian-Thakot KKH-II (CPEC),
  • $66.91 million Sukkur-Multan motorway (CPEC)
  • $13.04 million for Orange Line Metro Project in October

USA disbursed $28.5 million, International Development Association (IDA) $69.21 million, IDB (S-Term) $272.46 million, UK $51.14 million, France $31.16 million, Japan $17.45 million and Germany $4.51 million in the current fiscal year.