Pakistan acquires over $10 billion from various sources in FY19

August 19, 2019: The total disbursements from various financial sources were recorded $10,186 million during the fiscal year 2018-19, including loans of $9,856 million and grants of $330 million, official sources said.

Out of these, the disbursement from multilateral sources were $2,112 million whereas the disbursements from and bilateral sources stood at $1,977 million, according to One Year Performance Report launched by the government.

During the period under review, the borrowings from foreign commercial banks were $4,098 million and State Administration of Foreign Exchange (SAFE) deposit from China were $2,000 million.

These finances were helpful to finance development projects, repay outstanding external loans, improve balance of payments position and provide budgetary support, it added.

Meanwhile, during FY 2018-19, the incumbent government repaid $9,101 million to international development partners and foreign commercial banks on account of principal repayments ($7,047 million) and debt servicing ($2,055 million).

The external inflows facilitate the government to discharge its debt obligations, the report added.

The government recovered Rs239.158 billion foreign loans relent to provincial governments and autonomous bodies and as a result of recovery the receipts of the government increased.

According to the report, the Economic Affairs Division (EAD) has launched a project on “Strengthening of External Debt Management in EAD”, with support from the World Bank under the Pakistan Debt Management Support Programme (P-DMSP).

The project aims to ensure sustainability of the public and publicly guaranteed (PPG) external debt data statistics and reporting and Implementation of United Nation Commission for Trade and Development (UNCTAD) backed latest version (6.0) of Debt Management and Financial Analysis System (DMFAS).

During the year, the government signed $3,419 million worth of new loan agreements with Asian Development Bank (ADB), World Bank (WB), Islamic Development Bank (IDB), Korea and France.

In addition, $833 million worth of new grant agreements have also been signed with various multilateral and bilateral development partners.

APP