Pakistan incurs $13.03bn external loans in 10MFY22

May 23, 2022 (MLN): Pakistan has incurred foreign loans of $13.03 billion in the first ten months of the ongoing fiscal i.e., July- April FY22 from multiple financing sources against the annual budget estimates of $14.09bn for the entire fiscal year FY22, the latest monthly bulletin by the Economic Affairs Division (EAD) showed today.

In the month of April, the country got foreign assistance of $262.14 million from multiple financing sources.

Out of $13.03bn, the government obtained $10.26bn loan for non-project aid that includes $9.02bn in the form of program/budgetary support assistance to restructure Pakistan’s economy, $1.21bn for short-term credit, and $31.41mn for TDPs while $1.82bn has been obtained for project aid financing and guaranteed loans of $832.53 during July-April FY22.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $4.54bn of foreign economic assistance during 10MFY22. These healthy inflows also helped to improve foreign exchange reserves.

The Ministry of Economic Affairs noted the country relied on foreign commercial borrowing as it was recorded at $2.62bn that included a $1.14bn from Dubai Bank, $591.25mn loan from Emirates NBD, $61mn from Ajman Bank, $487.26mn loan from Standard Chartered Bank London while Suisse AG, UBL & ABL provided $343.50mn during July-March FY22.

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

During July-April FY22, the foreign assistance obtained by Pakistan through multilateral sources totaled $4.05bn. Amongst the multilateral development partners, Asian Development Bank (ADB) provided $1.454bn, followed by Islamic Development Bank (IDB) provided $1.21bn as short-term finance and International Development Association-World Bank (IDA) with $976.93mn.

The monthly bulletin by EAD revealed that the collective disbursement from bilateral partners amounted to $485.97mn during July-April FY22 wherein the country received $201.09mn from Saudi Arabia, followed by China with $153.3mn, the United States with a grant of $64.32mn while Japan gave $19.33mn during the period under review.

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