Pakistan’s reliance on external borrowing increased further during the first six months of the current fiscal year, as the country received Rs. 1,272 billion in foreign loans and grants, according to official documents.
In dollar terms, the country secured $4.5 billion in external financing in the first half of the fiscal year, $904 million more than the $3.6 billion received in the corresponding period of the previous fiscal year.
These inflows were sourced from multiple lenders, including the World Bank, Asian Development Bank (ADB), Islamic Development Bank, and commercial creditors.
For the current fiscal year, the government aims to borrow Rs. 4.507 trillion from external sources. This is equivalent to around $20 billion and is meant for budgetary and balance-of-payments requirements.
Of the total inflows between July and December, foreign loans accounted for Rs. 1,254 billion, which is Rs. 280 billion or 29 percent higher than the amount raised in the same period last year. Pakistan also received foreign grants worth Rs. 17.67 billion during the period.
Documents revealed that Pakistan received $1.2 billion through the Naya Pakistan Certificate during the six months, while Saudi Arabia provided an oil facility worth $600 million on a deferred payment basis.
A breakdown of the assistance reveals that non-project aid amounted to Rs. 785 billion, while project-related financing stood at Rs. 487 billion. Of the total inflows, Rs. 458.72 billion was received as budgetary support.
Among bilateral and multilateral lenders, Saudi Arabia extended an oil facility valued at Rs. 170 billion, while the Islamic Development Bank provided loans worth Rs. 137 billion. Total project aid during the period amounted to Rs. 487 billion.
Separately, the documents note that financing received from the International Monetary Fund (IMF), including a $1.2 billion tranche, is accounted for outside the main foreign assistance figures.
Including IMF disbursements, Pakistan’s external debt inflows reached approximately $5.7 billion during the six months.
It seems FORM 47 have speed up their agenda to neutralise Pakistan wealth.
So what kind of financial stability has been achieved in Shahbaz Sharif Govt during the last 2+2 years?