Business

Foreign Debt Increases to Almost 4 Billion in the First Quarter of FY22

The government incurred foreign debt of $3.898 billion from multiple financing sources in the first four months (July-October) of 2021-22 compared to $3.255 billion during the same period of last year.

The Ministry of Economic Affairs’ data shows that the government has received $2.773 billion as non-project aid during the first four months of the current fiscal year including budgetary support of $2.308 billion, short-term credit of $446.31 million, and TDPs of $18.37 million. Further $1.124 billion was received as project aid during the period under review.

The government has budgeted estimates of foreign assistance of $14.088 billion for the current financial year including $13.871 billion loans and $217.44 million grants from multilateral and bilateral sources.

The external inflows during the corresponding period (July-October) of the fiscal year 2020-21 were $3.255 billion including $566 million from foreign commercial banks against the budgeted amount of $12.233 billion.

The country received $692.57 million from multiple financing sources in October 2021 including $408.89 million from foreign commercial banks i.e. 59 percent.

The total receipt of $3.898 billion constitutes $1.869 billion from multilateral, $120.20 million from bilateral, $866.43 million from foreign commercial banks, and $1.041 billion from issuance of bonds.

The government borrowed $866.43 million from foreign commercial banks during the first four months of the current fiscal year including $215 million from Dubai Bank, $319.93 million from SCB (London) including ($138.39 million in October), $61 million from Ajman Bank PJSC and $270.50 million from Suisse AG, UBL & ABL in October 2021.

Among the multilateral development partners, the Asian Development Bank provided $581.01 million, World Bank disbursed $791.91 million, AIIB $37.77 million, and IDB (S-Term) $446.31 million.

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China did not disburse any amount in the second consecutive month, however, Pakistan received $73.35 million in the first two months (July-August) of the current fiscal year. The USA offered $25.99 million, Korea $2.06 million, UK $10.01 million and Germany $3.33 million.

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ProPK Staff