Pakistan Received Only $439 Million Foreign Loans in First 2 Months of FY23

Pakistan borrowed $439.32 million from multiple financing sources in the first two months (July and August) of the current fiscal year 2023 (FY23) compared to $2.376 billion borrowed during the same period of the last fiscal year.

The Economic Affairs Division (EAD) data, released on Friday, notes that the government procured $252.25 million in external loans in August 2022 compared to $780.88 million during the same month of last fiscal year.

The government has budgeted foreign assistance of $22.8 billion for the current fiscal year including $7.5 billion from foreign commercial banks, $22.655 billion in loans, and $161.46 million in grants.

The country received $206.25 million from multilaterals and $233.07 million from bilateral partners during July and August 2022. The non-project aid was $243 million, including $37.01 million for budgetary support, while the project aid stood at $196 million.

China disbursed $4.90 million during the first two months of FY23 against the government budgeted estimates of $49.02 million for the current fiscal year. Saudi Arabia disbursed $200 million against the budgeted $800 million.

United States (US) disbursed $8.30 million during the period under review against the budgeted $32.49 million for FY23. Korea and France disbursed $15.65 and $3.21 million respectively during the first two months of FY23.

The Asian Development Bank (ADB) disbursed $70.96 million out of the $3.202 billion budgeted for the current fiscal year. The International Development Association (IDA) disbursed $100.64 million against the budgeted $1.4 billion, International Bank for Reconstruction and Development (IBRD) provided $22.33 million against the budgeted $1.246 billion, and Islamic Development Bank (IDB) disbursed $8.85 million against the budgeted $3.38 million for the current financial year.