Pakistan Received Foreign Loans of $3.2 Billion in First 2 Months of FY24

The country borrowed $3.206 billion from multiple financing sources during the first two months (July-August) of the current fiscal year 2023-24 (FY24) compared to $439.32 million borrowed during the same period of FY23, revealed the Economic Affairs Division (EAD) data.

Data further shows that the country received $316.14 million in August 2023 compared to $252.25 million in August 2022.

The $3.206 billion included $2 billion received from Saudi Arabia under the head of time deposit during July 2023, The government had budgeted estimates of $4.5 billion from the foreign commercial banks for the current fiscal year 2023-24, however, no money was received under this head in July and August.

The government had budgeted $17.619 billion from multiple financing sources for the current fiscal year including $17.384 billion in loans and $234.60 million in grants.

The country borrowed $10.844 billion from multiple financing sources including $2.206 billion from foreign commercial banks during the fiscal year 2022-23 against the budgeted foreign assistance of $22.817 billion. However, the $10.844 billion did not include the rollover of friendly countries’ deposits amounting to $6 billion (i.e. $3 billion each from China and Saudi Arabia) and the re-financing of a Chinese loan of $1.3 billion.

The country received $140.82 million under the head of “Naya Pakistan Certificate” during the first two months of the current fiscal year 2023-24.

The country received $335.87 million from multilateral and $221.36 million from bilateral during July-August FY24. The non-project aid was $2.446 billion including $2.149 billion for budgetary support and project aid was $759.95 million. The country received $508.34 million under the head of guaranteed CATIC (PAF).

Asian Development Bank (ADB) disbursed $38.78 million during the period under review compared to the budgeted $2.086 billion for the fiscal year 2023-24.

China disbursed no money in July-August, however, the government has budgeted $18.54 million for the current fiscal year.

Saudi Arabia disbursed $200 million against the budgeted $600 million under the head of oil facility during July-August 2023-24. The US disbursed $11.64 million in the first two months against the budgeted $21.60 million for the fiscal year. Korea disbursed $4.85 million and France $1.28 million during the current fiscal year.

The IDA disbursed $161.07 million in July-August against the budgeted $1.489 billion for the current fiscal year and IBRD $16.47 million against the budgeted $840.36 million. IsDB (Short-term) disbursed $97.10 million in July-August against the budgeted $500 million for the current fiscal year and AIIB disbursed $16.07 million, while IFAD disbursed $6.38 million against the budgeted $42.68 million for the current fiscal year.

The government had budgeted $2.4 billion from the International Monetary Fund (IMF) for the current fiscal year 2023-24 and received $1.2 billion as the first tranche of the $3 billion Stand-By Arrangement (SBA) in July 2023, however, the EAD data does not reflect it. Further, there is no mention of the $1 billion disbursed by the UAE. If the IMF and UAE inflows are added, the total inflows would reach $5.405 billion during the first two months of the current fiscal year.

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