Pakistan falls short of annual loan targets, secures only $8.12bn in 10MFY23

May 19, 2023 (MLN): The economically challenged country has managed to incur only $8.12 billion in terms of external loans during July- April FY23 from multiple financing sources against the annual budget estimates of $22.81bn for the entire fiscal year FY23, the latest monthly report by the Economic Affairs Division (EAD) showed.

It is pertinent to mention that the country received $13bn in July- April FY23, up by 37.67% YoY when compared to this year.

In the month of April 2023, the country received foreign assistance of $358.61 million from multiple financing sources, up by $96.4mn compared to $262.14 in April 2022.

Out of $8.12bn, the government obtained a $6.5bn loan for non-project aid that includes $5.33bn in the form of program/budgetary support assistance to restructure Pakistan’s economy, $161mn for IsDB short-term credit, $982.28mn for SFD short term and $16.46mn for TDPs while $1.625bn has been obtained for project aid financing and guaranteed loans of $832.5mn during July-April FY23.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners stood at $5.38bn of foreign economic assistance during 10MFY23.

During July-April FY23, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $4.13bn. Amongst the multilateral development partners, Asian Development Bank (ADB) provided $1.97bn, followed by International Development Association-World Bank (IDA) $1.17bn.

Furthermore, the monthly bulletin revealed that the collective disbursement from bilateral donors amounted to $1.24bnn during July-April FY23 wherein Pakistan received major amount of $982.28mn from Saudi Arabia (Oil Facility), and $127.89mn from China.

Similarly, the country received $900mn from commercial banks against the budgeted amount of $7.47bn whereas no money was received against bonds.

During the same period, the IMF, lender of the last resort provided $677.24mn against the budgeted amount of $3bn.

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