Pakistan borrowed $3.527 billion from multiple financing sources during the first quarter (July-September) of the current fiscal year 2023-24 (FY24) compared to $2.234 billion borrowed during the same period of 2022-23, according to data released by Economic Affairs Division (EAD).
Data further shows that the country received $320.92 million in September 2023 compared to $625.86 million in September 2022.
The government has 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 $1 billion disbursed by the UAE. If the IMF and UAE inflows is added, the total inflows would reach $5.727 billion during the first three month of current fiscal year.
The $3.527 billion included $2 billion received from Saudi Arabia under the head of time deposit during July 2023. The data further shows that 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 during the first three months of current fiscal year.
The government had budgeted $1.5 billion from issuance of bonds, however, the country is yet to issue the bonds, hence no amount is received so far.
The government had budgeted $17.619 billion from multiple financing sources for the current fiscal year including $17.384 billion loans and $234.60 million 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 re-financing of Chinese loan of $1.3 billion.
The country received $204.51 million under the head of “Naya Pakistan Certificate” during the first three months of current fiscal year 2023-24.
The country received $490.48 million from multilaterals and $324.05 million from bilateral during July-September 2023-24. The non-project aid was $2.653 billion including $2.253 billion for budgetary support and project aid was $873.97 million.
China disbursed $508.34 million under the head guaranteed for the JF-17 B project funded by China National Aero-Technology Import and Export Corporation (CATIC). China further disbursed 0.35 million in July-September against the government budgeted of $18.54 million for the current fiscal year.
Asian Development Bank (ADB) disbursed $61.75 million during the period under review compared to the budgeted $2.086 billion for the fiscal year 2023-24.
Saudi Arabia disbursed $300 million against the budgeted $600 million under the head of oil facility during July-September 2023-24. The USA disbursed $13.98 million in the first three 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 $240.93 million in July-September against the budgeted $1.489 billion for the current fiscal year and IBRD $58.45 million against the budgeted $840.36 million. IsDB (Short-term) disbursed $100 million in July-September against the budgeted $500 million for the current fiscal year and AIIB disbursed $22.96 million, while IFAD disbursed $6.38 million against the budgeted $42.68 million for the current fiscal year.
Pakistani government elite cannot control it’s expenses and things are getting out of hand. How long we will live on Foreign loans? Who will pay the interest and how to repay these loans? Anyone gave a thought or leaders are just enjoying without any future planning?