Pakistan Piles Up $12.7 Billion in Foreign Loans During 9 Months of FY22

Pakistan incurred a foreign debt of $12.767 billion from multiple financing sources in the first nine months (July-March) of 2021-22 against the total budgeted external loans of $14.088 billion for the entire fiscal year.

According to the Economic Affairs Division (EAD) data, the country received $588.97 million from multiple financing sources in March 2022.

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

The external inflows during the corresponding period (July-March) of the fiscal year 2020-21 stood at $7.413 billion, including $3.120 billion from foreign commercial banks against the budgeted amount of $12.233 billion.

The total receipt of $12.767 billion constitutes $3.949 billion from multilateral, $320.43 million from bilateral, $2.623 billion from foreign commercial banks, $2.041 billion from issuance of bonds, $832.53 from guaranteed loans, and $3 billion time deposit from Saudi Arabia.

The non-project aid was $10.114 billion, including $8.882 billion for budgetary support and project aid stood at $1.820 billion. Guaranteed loans were $531.01 million during the first nine months of 2021-22.

The government borrowed $2.623 billion from foreign commercial banks during the first nine months of the current fiscal year, including $1.140 billion from Dubai Bank, $487.26 million from SCB (London), $61 million from Ajman Bank PJSC, $343.50 million from Suisse AG, UBL and ABL and $591.25 million from Emirates NBD.

Among multilateral development partners, mainly the Asian Development Bank provided $1.436 billion, the World Bank disbursed $1.122 billion, the AIIB $38.87 million, IDB $68.16 million, and IDB (S-Term) $1.207 billion. China disbursed $102.05 million in the first nine months (July-March) of the current fiscal year, the USA $60.85 million, Korea $4.06 million, the UK $14.54 million, and Germany $12.36 million.