November 25, 2024 (MLN): Pakistan secured external financing worth $414.88 million in October 2024 from multiple financing sources, 30.1% lower than last month and 30.4% higher than the same month last year.
Cumulatively, in 4MFY25, the country only managed to secure $1.72 billion in external financing against the annual budget estimates of $19.39bn for FY25, the latest monthly report by the Economic Affairs Division (EAD) showed.
Last year, the government had budgeted $17.62bn foreign assistance but could only materialize $9.81 throughout the fiscal year.
During the review month, the total amount comprised $397.67m in loans and the remaining $17.21m in grants from various sources.
The full-year $19.39bn target for the current fiscal year includes $5.05bn from multilateral and bilateral lenders, $1bn in international bonds, $3.78bn foreign commercial loans, $5bn time deposit from Saudi Arabia, and $4bn safe deposit from China.
Going into details made available by EAD, the disbursement from bilateral and multilateral development partners totaled $247.51m in October and $980.88m during 4MFY25.
Although these inflows helped to improve foreign exchange reserves, they fell significantly short of the government's budget estimates.
Foreign assistance obtained through multilateral sources totaled nearly $238.03m in October and $720.99m in 4MFY25. While financing through bilateral development partners stood at $9.48m in October and $259.89m in 4MFY25.
The foreign commercial borrowing amounted to $167.37m in October 2024 and $542.15m in 4MFY25. This was obtained through Naya Pakistan Certificate.
To note the government has managed to secure $200m in the first three months of fiscal year through foreign commercial banks against the government’s budget estimates of $3.78bn for the full year.
To note, out of the total financing amount in October, the government obtained a $234.29m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan's economy. Cumulatively in 4MFY25, loans for non-project aid amounted to $896.96m.
Copyright Mettis Link News
Posted on: 2024-11-25T16:32:38+05:00
