October 26, 2021 (MLN): Pakistan has received $3.204 billion foreign assistance during 1QFY22 i.e., July- September from multiple financing sources against the annual budget estimates of $14.09bn for the entire fiscal year FY22.
In its latest data released by the Economic Affairs Division (EAD), the foreign assistance obtained by Pakistan through multilateral sources during July-September 2021 totaled $1.60bn. Amongst the multilateral development partners, International Development Association-World Bank (IDA) provided $531.25mn, followed by Asian Development Bank (ADB) with $460mn. While the country obtained $446.31mn from Islamic Development Bank (IDB) as short-term finance during 1QFY22.
The government also relied on foreign commercial banks as it borrowed $457.54mn during 1QFY22. All these commercial loans were arranged for budgetary support and included a 181.54mn loan from Standard Chartered Bank London, $61mn from Ajman Bank, while Dubai Bank provided $215mn while during July-Sept 2021.
During the said period, the country received $1.041bn from bonds issuance.
This foreign aid provides a wide range of support in the areas of capital formation, employment, health, education, public transport, water reservoir, and more, driving economic growth and helping to promote socio-economic and human development in Pakistan.
Meanwhile, the collective disbursement from bilateral donors made available by EAD showed that Pakistan received $73.35mn from China, followed by the United States with a grant of $27.27mn, the United Kingdom with $3.15mn while Germany, Korea and Saudi Arabia gave $2.26mn, $1.59mn and $1.09mn, respectively during 1QFY22.
These external inflows from multilateral and bilateral development partners are indicative of their confidence in development priorities and policies of the government including implementation of reforms in the priority areas of fiscal and debt management, energy sector, and ease of doing business.
Copyright Mettis Link News