Govt Borrowed $1.799 Billion From Foreign Banks in First Half of FY 2019-20

According to the Economic Affairs Division (EAD), the government procured $1.799 billion from foreign commercial banks. The government received $2.71 billion from multilateral and bilateral during December, bringing the total to $5.78 billion in the first half of the current fiscal year 2019-20.

The government budgeted foreign assistance of $12.957 billion for the current fiscal year including $2 billion foreign commercial loans. The country received $2.865 billion multilaterally (excluding the $1.44 billion from IMF) and $710 million bilaterally during July-December 2019-20.

Further, $407.50 million were received under the head of the Saudi Arabia-short term (Saudi oil facility) in the current fiscal year out of a total budget of $3.2 billion.

China disbursed $59.49 million in December bringing the total to $391.76 million in the current fiscal year 2019-20. China disbursed $59.01 million for the Havelian-Thakot road project in December. Further, China disbursed $2.91 million for the construction of cross border optical fiber. 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 $408.21 million in the current fiscal year out of the total of $1.1 billion budgeted for the current fiscal year.

Asian Development Bank (ADB) disbursed $2.156 million, United Kingdom (UK) $121.71 million, IDA $201.66 million, IBRD $63.26 million, International Fund for Agricultural Development (IFAD) $28.19 million, USA $34.76 million and Japan $24.53 million in the first half of the current fiscal year.

According to EAD, the government borrowed $1.799 billion from foreign commercial banks in the first half of the current fiscal year compared to $499.44 million during the same period of last year. The government procured $749.50 million from foreign commercial banks during December 2019 including $700 million from China Development Bank and $49.50 million from Dubai Bank.

Dubai Bank disbursed $197.99 million and Ajman Bank disbursed $66.69 million in November. The country received $88.92 million from Ajman Bank and $155 million from the consortium-led by Suisse AG, UBL, and ABL in October. Dubai Bank had also disbursed $193.05 million in September while Citibank disbursed $148.2 million in August. The country had also borrowed $123.31 million from Dubai Bank and $50 million from a consortium of Credit Suisse in July.