The government received external loans of $2.961 billion, including $1.049 billion from foreign commercial banks i.e. around 35 percent, in the first five months (July-Nov) of the fiscal year 2019-20.
Pakistan had received $1.860 billion external loans, including $450 million from foreign commercial banks, during the same period last year. This was revealed by the Economic Affairs Division (EAD).
The government budgeted foreign assistance of $12.957 billion for the current fiscal year, including $2 billion foreign commercial loans. The country received $1.149 billion from multilaterals (excluding the first tranch release from the IMF) and $489.29 million bilaterally during July-November 2019-20. Another $273.45 million was received under Saudi Arabia’s short term loan (Saudi oil facility) in the current fiscal year, out of a total of $3.2 billion.
Dubai Bank disbursed $197.99 million and Ajman Bank loaned $66.69 million in November. Pakistan received $88.92 million from Ajman Bank and $155 million from the consortium-led by Suisse AG, UBL, and ABL in October. Dubai Bank disbursed $193.05 million in September while Citibank disbursed $148.2 million in August. The government also borrowed $123.31 million from Dubai Bank and $50 million from a consortium of Credit Suisse in July.
China disbursed $2.91 million in November, bringing the total to $298.14 million for the fiscal year 2019-20. The amount was loaned for the construction of cross border optical fiber in November. Earlier, $133.02 million was released for the Havelian-Thakot road project, $140.16 million for the Sukkur-Multan motorway, $13.86 million for the Orange Line Metro project and $8.20 for Neelum Jehlum Hydropower project.
The Islamic Development Bank disbursed $351.61 million in the current fiscal year so far out of the total of $1.1 billion budgeted for the current fiscal year.
Asian Development Bank (ADB) disbursed $606.72 million, United Kingdom (UK) $113.14 million, IDA $107.88 million, IBRD $27.85 million, International Fund for Agricultural Development (IFAD) $27.04 million, USA $31.88 million and Japan $21.25 million in the first five months of current fiscal year.
$80 Million Loan Deal Signed With EXIM Bank of Korea
The government of Pakistan and EXIM Bank of Korea have signed a loan agreement worth $80 million for energy sector reforms. Minister for Economic Affairs Muhammad Hammad Azhar attended the signing ceremony of the loan agreement.
The loan agreement was signed by Secretary EAD Pervaiz Abbas and Director (Asia Region) Yang Dongcheol of EXIM Bank Korea.
This program aims to address the fiscal, governance, technical and policy deficits in Pakistan’s energy sector, which will help bring economic sustainability and fiscal balance. It will support the new national energy policy and integrated energy plan being formulated by the current government.