Foreign Loans Jump to $14.8 Billion: Report

The total foreign loans acquired by the government rose to $8.837 billion in April showing a rise of $2.997 billion from March.

It should be noted that this figure does not include $6 billion loans from friendly countries – $3 billion each from Saudi Arabia and United Arab Emirates (with $1 billion yet to be disbursed).

Total foreign loans acquired during July 2018 – April 2019 are $14.837 billion, 45 percent higher than the same period last year.

Pakistan Tehreek-e-Insaf (PTI)-led government borrowed $76.05 million from foreign commercial banks in April, bringing the total to $3.183 billion under this head in the current fiscal year (July-April) 2018-19, compared to $2.922 billion during the same period of last year.

EAD’s Data

According to the latest data of Economic Affairs Division (EAD) the country provisionally received over $8.837 billion of foreign assistance in the first ten months (July-April) of current financial year 2018-19, with loans from friendly countries not included, against $9.6 billion during the same period of last year (2017-18), showing a reduction of about 8 percent.

The EAD data for April reflects $2 billion under the China Safe deposit loan though it was acquired before April. The PML-N government had budgeted foreign assistance of $9.69 billion for 2018-19 including a $394.34 million grant 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 $330.52 million including $321.56 million loans and $8.96 million grants in April.

The country received $3.653 billion from bilaterals including China $1.999 billion, the UK $80.40 million, USA $63.82 million, France $66.57 million, Saudi Arabia $24.11 million, Germany $14.50 million and Japan $62.10 million.

According to the EAD report, the country received $8.619 billion in loans and $218.09 million grants.

Foreign Commercial Bank Loans

The previous government had budgeted $2 billion from foreign commercial banks for 2018-19, but borrowing under this head reached $3.183 billion in April.

China Development Bank disbursed $2.234 billion, Industrial and Commercial Bank of China (ICBC) $300 million, the Suisse AG, UBL and ABL consortium $295 million, Dubai Bank 184.44 million, Ajman Bank $150.09 million and Noor Bank $20 million during the current fiscal year (July-April).

Multilaterals disbursed $1.338 billion during the first ten months of the current fiscal year including Asian Development Bank (ADB) $406.77 million, IDB (S-Term) $572.37 million, International Development Association (IDA) $205.89 million, Asian Infrastructure Investment Bank (AIIB) $17.53 million, IBRD $44.11 million and Islamic Development Bank (IDB) $5.80 million.

  • this site becomes an anti PTI site or pro mafia,
    little did they tell most of the loan were taken to pay back previous loans and their interests which were taken in short term mostly to target next elected govt, in 2019 about $9 billion loan is paid back.

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