The federal government led by Prime Minister Shehbaz Sharif has obtained $8.45 billion from different international financial institutions, commercial banks, and governments during its seven-month tenure to fulfill its financial obligations.
The data shows that the federal government borrowed on average $1.20 billion in fresh loans and grants every month during the first seven months of its tenure.
A senior official of the Ministry of Finance told ProPakistani that the country has obtained $8.38 billion in fresh loans and $76 million in aid from bilateral and multilateral sources, commercial banks, and governments during the period.
During April, the government received $262.14 million from external sources. The government received $505.65 million including $502.88 million in fresh loans and $2.77 million in grants, during the month of May and $3.435 billion during June 2022 to bridge the external financing gap.
The data shows that the new government faced difficulties getting external financing during the first two months of its tenure as it got only $767.79 million during the suspension of the loan program of the International Monetary Fund (IMF).
The government could only obtain $185.61 million from external sources including $179.06 million in fresh loans and $6.55 million in aid during July. The government got $252.25 million in external financing in August and $625.86 million in external financing including a $612.49 million loan and $13.37 million grant during the month of September.
In October, the government obtained $2.018 billion. The main contributor to the increase in foreign assistance was the Asian Development Bank’s (ADB) assistance of $1.20 billion under the Building Resilience with Active Countercyclical Expenditures (BRACE) Program.
It is pertinent to mention here that the Pakistan Tehreek-e-Insaf (PTI) government borrowed $47.1 billion during its tenure of 44 months.