Pakistan’s external financing stands at $2.89bn in July 2023

August 21, 2023 (MLN): The country incurred external loans of $2.891 billion in July 2023 from multiple financing sources against the annual budget estimates of $17.62bn for FY24, the latest monthly report by the Economic Affairs Division (EAD) showed.

Out of $2.89bn, the government obtained a $2.25bn loan for non-project aid that includes $2.08bn in the form of program/budgetary support assistance to restructure Pakistan’s economy, $67.23 million for short-term credit, and $100m for SFD oil facility, while $640.11m has been obtained for project aid financing during the month.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $307.52m of foreign economic assistance during July. These healthy inflows also helped to improve foreign exchange reserves.

The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing as it amounted to $2.07bn which included $2bn time deposit, and $74.7m from Naya Pakistan Certificate during July 2023.

During the month, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $193.64m. Amongst the multilateral development partners, CATIC (PAF) provided $508.34m, followed by International Development Association-World Bank (IDA) with $82.71m, IsDB (Short-term) with $67.23m, Asian Development Bank (ADB) provided $22.59m, and Asian Infrastructure Investment Bank (AIIB) with $11.74m.

The monthly bulletin revealed that the collective disbursement from bilateral donors amounted to $113.88m during the month wherein Pakistan received $100m from Saudi Arabia, followed by the USA with $8.17m, Korea with $4.85m, France with $0.56m, Germany with $0.17m, while Japan gave $ 0.13m during the period under review.

Copyright Mettis Link News