Foreign Assistance to Pakistan Drops by 60%

The country provisionally received $2.705 billion of budget estimates of foreign assistance in the first seven months (July-January) of current financial year 2018-19 against $6.882 billion during the same period of last year (2017-18), showing a reduction of about 60 percent.

The Economic Affairs Division (EAD) data shows that the Pakistan Tehreek-e-Insaf (PTI)-led government did not borrow from foreign commercial banks in January, 2018-19. However, the country has borrowed a total of $$499.44 million from foreign commercial banks in the current fiscal year so far compared to $1.777 billion during the same period of 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 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 $381.48 million including $368.33 million loans and $13.15 million grants in January.

Asian Development Bank (ADB) disbursed $17.80 million in January bringing the total disbursement to $356.86 million in the current fiscal year against the budgeted estimates of $1.38 billion for the entire year.

The country received $288.13 million from China in January, bringing the total to $1.123 billion in the current fiscal year against the budgeted estimate of $840.99 million.

This amount includes $203.88 million for the Orange Line Metro Project, $604.45 million for the Sukkur-Multan section of China-Pakistan Economic Corridor’s (CPEC), $202.88 million for Havelian-Thakot road (CPEC), $102.58 million for Pakistan Remote Sensing Satellite and $2.8 million for construction of cross border optical fiber cable system (CPEC).

USA disbursed $48.14 million, International Development Association (IDA) $128.13 million, IDB (S-Term) $297.37 million, UK 74.07 million, France $41.83 million, Japan $36.14 million and Germany $13.32 million in the current fiscal year so far.

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 $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.