Pakistan receives $594m external financing in Sep

October 29, 2024 (MLN): Pakistan secured external financing worth $593.90 million in September 2024 from multiple financing sources, 119.5% higher than last month and 85.1% higher than the same month last year.

Cumulatively, in 3MFY25, the country only managed to secure $1.31 billion 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 materialise $9.81bn throughout the fiscal year.

The total amount comprised $574.98m in loans and the remaining $18.92m 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 $278.16m in September and $733.25m during 3MFY25.

Foreign assistance obtained through multilateral sources totaled nearly $189.97m in September and $482.96m in 3MFY25. While financing through bilateral development partners stood at $88.19m in September and $250.29m in 3MFY25.

The foreign commercial borrowing amounted to $115.75m in September 2024 and $374.79m in 3MFY25. This was obtained through Foreign Commercial Banks and 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.

The data further shows that out of the total financing amount in September, the government obtained a $388.82m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan's economy.

Cumulatively in 3MFY25, loans for non-project aid amounted to $662.67m.

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