Pakistan’s Foreign Assistance & Loans Have Dropped by 60% Under Current Govt

Pakistan has provisionally received $2.313 billion of its budget estimate of foreign assistance in the first half (July-December) of the current financial year 2018-19 against $5.895 billion during the same period of last year (2017-18), showing a reduction of about 60 percent.

The latest data from Economic Affairs Division (EAD) shows that the Pakistan Tehreek-e-Insaf (PTI)-led government borrowed $25 million from foreign commercial banks in December, bringing the total to $499.44 million under this head in the current fiscal year (July-Dec) 2018-19 compared to $1.163 billion during the same period last year.

The PML-N government had estimated foreign assistance of $9.69 billion for 2018-19 including $394.34 million grants and $9.297 billion in loans, as shown in the EAD data.

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 $422.68 million including $402.46 million in loans and $20.22 million in grants in December.

The previous government had budgeted estimates of $2 billion from foreign commercial banks for 2018-19. The country received $25 million from the consortium-led by Suisse AG, UBL and ABL in December, besides the $50 million received in November from the consortium.

The country had received $159.5 million in October from Dubai Bank. According to the EAD data, the loan agreement of $160 million was signed on September 26, 2018 i.e. by the PTI government of which $159.5 million has been received so far.

Noor Bank disbursed $20 million in July out of the total committed amount of $130 million. The loan agreement was signed on June 21, 2018 i.e. during the caretaker government.

The Suisse AG also disbursed $50 million out of its total commitment of $750 million in July. This loan agreement was signed during the PML-N government i.e. on May 9, 2018. However, no commercial loans were taken during August 2018.

The country received $170 million in September from consortium-led by Suisse AG, UBL and ABL. According to the EAD data, the loan agreement of $200 million was signed on September 24, 2018 i.e. by the PTI government, but the government has crossed the figure and received $245 million so far.

Asian Development Bank (ADB) disbursed $142.42 million in December bringing the total disbursement to $339.06 million in the current fiscal year against the budgeted estimates of $1.38 billion for the entire year.

The country received $187.07 million from China in December, bringing the total to $835.62 million in the current fiscal year against the budgeted estimate of $840.99 million.

This amount includes $185.83 million for the Orange Line Metro Project, $417.65 million for the Sukkur-Multan section of China-Pakistan Economic Corridor’s (CPEC), $122.95 million for Havelian-Thakot road (CPEC), $69.48 million for Pakistan Remote Sensing Satellite and $2.8 million for construction of cross border optical fiber cable system (CPEC).

USA disbursed $34.20 million, International Development Association (IDA) $99.42 million, IDB (S-Term) $272.46 million, UK 70.02 million, France $41.83 million, Japan $31.28 million and Germany $10.43 million in the current fiscal year so far.



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