July 03, 2024 (MLN): The country secured external financing worth $402.96 million in May 2024 from multiple financing sources, the latest monthly report by the Economic Affairs Division (EAD) showed.
The total amount comprised $390.89m in loans and the remaining $12.07m in grants from various sources.
Cumulatively, in 11MFY24, the country only managed to secure $7.55 billion external financing against the annual budget estimates of $17.62bn for FY24.
Out of the total financing amount in May, the government obtained a $139.6m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan's economy. Cumulatively in 11MFY24, loans for non-project aid amounted to $4.98bn.
The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing as it amounted to $126.04m in May 2024 and $1.02bn in 11MFY24.
This was obtained through Naya Pakistan Certificate.
Meanwhile, the government did not manage to secure any amount through foreign commercial banks in 11MFY24 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 $276.92m in May and $4.02bn during 11MFY24.
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 $265.89m in May and $3.13bn in 11MFY24.
The total financing through bilateral development partners stood at $11.03m in May and $888.93m in 11MFY24.
