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Foreign loans surge to $13.5bn in 11MFY22

June 29, 2022 (MLN): Pakistan received fresh external loans of $13.54 billion in 11 months of the ongoing fiscal i.e., July- May FY22 from multiple financing sources against the annual budget estimates of $14.09bn for the entire fiscal year FY22, the latest monthly report by the Economic Affairs Division (EAD) showed.

In the month of May 2022, the country got foreign assistance of $505.65 million from multiple financing sources. While no loans were borrowed from commercial banks in May 2022.

Out of $13.54bn, the government obtained a $10.5bn loan for non-project aid that includes $9.2bn in the form of budgetary support, $1.29bn for short-term credit, and $31.41mn for TDPs.

Meanwhile, $1.95bn has been obtained for project aid financing and $1.03bn guaranteed loans during July-May FY22.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $4.85bn of foreign economic assistance during 11MFY22.

The Ministry of Economic Affairs noted the country relied on foreign commercial borrowing as it was recorded at $2.62bn during July-May FY22.

Similarly, the country received $2.04bn from bonds issuance and a $3bn time deposit from Saudi Arabia during the said period.

During July-May FY22, the foreign assistance obtained by Pakistan through multilateral sources totaled $4.25bn. Amongst the multilateral development partners, Asian Development Bank (ADB) provided $1.48bn, followed by Islamic Development Bank (IDB) provided $1.29bn as short-term finance and International Development Association-World Bank (IDA) with $1.02bn.

The monthly bulletin by EAD revealed that the collective disbursement from bilateral partners amounted to $593.3mn during July-May FY22 wherein the country received $301.1mn from Saudi Arabia, followed by China with $157.6mn, the United States with a grant of $64.72mn while Japan gave $19.49mn during the period under review.

Copyright Mettis Link News

Posted on: 2022-06-29T11:11:27+05:00

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