December 23, 2024 (MLN): Pakistan secured external financing worth $944.2 million in November 2024 from multiple financing sources, 127.6% higher than last month and 127.0% higher than the same month last year.
Cumulatively, in 5MFY25, the country only managed to secure $2.67 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 $9.81 throughout the fiscal year.
The total amount comprised $937.66m in loans and the remaining $6.54m 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 $751.45m in November and $1.73bn during 5MFY25.
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 $743.33m in November and $1.46bn in 5MFY25. While financing through bilateral development partners stood at $8.12m in November and $268.8m in 5MFY25.
The foreign commercial borrowing amounted to $192.75m in November 2024 and $734.9m in 5MFY25. This was obtained through Naya Pakistan Certificate.
Meanwhile the government did not manage to secure any amount through foreign commercial banks in 5MFY25 against the government's budget estimates of $3.78bn for fiscal year 2024-25.
To note, out of the total financing amount in November, the government obtained a $725.27m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan's economy. Cumulatively in 5MFY25, loans for non-project aid amounted to $1.6bn.
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Posted on: 2024-12-23T16:52:46+05:00
