Pakistan’s external financing stands at $10.84bn during FY23

July 31, 2023 (MLN): The country has incurred external loans of $10.84 billion in the fiscal year 2023 from multiple financing sources against the annual budget estimates of $22.82bn for FY23, the latest monthly report by the Economic Affairs Division (EAD) showed.

In the month of June, the country got foreign assistance of $2.23 million from multiple financing sources.

Out of $10.84bn, the government obtained $8.78bn loan for non-project aid that includes $7.42bn in the form of program/budgetary support assistance to restructure Pakistan’s economy, $1.34bn for short-term credit, and $16.46m for TDPs while $2.07bn has been obtained for project aid financing during FY23.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $6.68bn of foreign economic assistance during FY23. These healthy inflows also helped to improve foreign exchange reserves.

The Ministry of Economic Affairs noted the country relied on foreign commercial borrowing as it was recorded at $2.62bn that included a $1.14bn from Dubai Bank, $591.25mn loan from Emirates NBD, $61mn from Ajman Bank, $487.26mn loan from Standard Chartered Bank London while Suisse AG, UBL & ABL provided $343.50mn during July-March FY22.

The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing as it amounted to $4.16bn that included $1.17bn from the International Monetary Fund, $789m from Naya Pakistan Certificate, and $2.21bn from various commercial banks during FY23.

During FY23, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $5.22bn. Amongst the multilateral development partners, Asian Development Bank (ADB) provided $2.27bn, followed by International Development Association-World Bank (IDA) with $1.81bn, and Asian Infrastructure Investment Bank (AIIB) with $559m.

The monthly bulletin revealed that the collective disbursement from bilateral donors amounted to $1.46bn during FY23 wherein Pakistan received $1.18bn from Saudi Arabia, followed by China with $128.03m, Japan with $35.21m, France with $33.81m while Korea gave $27.42m during the period under review.

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