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Pakistan’s external borrowing stands at $237.2m in April 2024

Pakistan's external borrowing stands at $237.2m in April 2024
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May 24, 2024 (MLN): The country secured external financing worth $237.24 million in April 2024 from multiple financing sources, the latest monthly report by the Economic Affairs Division (EAD) showed.

The total amount comprised $228.64m in loans and the remaining $8.60m in grants from various sources.

Cumulatively, in 10MFY24, the country only managed to secure $7.14 billion external financing against the annual budget estimates of $17.62bn for FY24.

Out of the total financing amount in April, the government obtained a $117.39m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan's economy. Cumulatively in 10MFY24, loans for non-project aid amounted to $4.84bn.

The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing as it amounted to $107.95m in April 2024 and $889.43m in 10MFY24.

This was obtained through Naya Pakistan Certificate.

Meanwhile the government did not manage to secure any amount through foreign commercial banks in 10MFY24 against the government's budget estimates of $4.5bn for fiscal year 2023-24.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $129.29m in April and $3.74bn during 10MFY24.

Although these inflows helped to improve foreign exchange reserves, they fell significantly short of the government's budget estimates.

During the review period, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $121.61m in April and $2.87bn in 10MFY24.

Amongst the multilateral development partners, in April, the International Development Association-World Bank (IDA) led with $61.73m in funding, followed by the Asian Development (ADB) with $42.78m.

The International Bank for Reconstruction and Development (IBRD) allocated $8.52m, while Asian Infrastructure Investment Bank (AIIB) provided $6.33m.

On a cumulative basis, IDA has contributed significantly to multilateral lending, with disbursements totaling $1.35bn, followed by ADB with $708.30m and AIIB with $309.95m.

The total financing through bilateral development partners stood at $7.68m in April and $877.76m in 10MFY24.

Pakistan received $3.10m from Germany, followed by Korea with $1.80m, France with $1.77m, and the USA with $1.01m during the month under review. 

In 10MFY24, Saudi Arabia (Oil Facility) held the majority proportion with disbursements of $595.18m.

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Posted on: 2024-05-24T11:25:46+05:00