Pakistan's external financing stands at $218.5m in March

April 23, 2024 (MLN): The country secured external financing worth $218.53 million in March 2024 from multiple financing sources, the latest monthly report by the Economic Affairs Division (EAD) showed.

The total amount of $218.5m comprises $204.7m in loans and the remaining $13.83m in grants from various sources.

The total external financing in 9MFY24 stood at $6.9 billion against the annual budget estimates of $17.62bn for FY24.

Out of the total financing amount in March, the government obtained a $96.19m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan’s economy. Cumulatively in 9MFY24, loans for non-project aid amounted to $4.72bn.

The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing as it amounted to $94.66m in March 2024 and $781.48m in 9MFY24.

This was obtained through Naya Pakistan Certificate.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $123.87m in March and $3.61bn during 9MFY24.

These healthy inflows also helped to improve foreign exchange reserves.

During the review period, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $103.82m in March and $2.74bn in 9MFY24.

Amongst the multilateral development partners, in March, the International Development Association-World Bank (IDA) led with $63.7m in funding, followed by the Asian Development (ADB) with $21.90m.

The International Bank for Reconstruction and Development (IBRD) allocated $16.89m, while the International Fund for Agricultural Development (IFAD) provided $0.69m.

On a cumulative basis, IDA has contributed significantly to multilateral lending, with disbursements totaling $1.29bn, followed by ADB with $665.52m and AIIB with $300.04m.

The total financing through Bilateral development partners stood at $20.05m in March and $870.22m in 9MFY24.

Pakistan received $7.47m from Japan, followed by Germany with $4.91m, France with $3.47m, Saudi Arabia with $2.93m, and the USA with $1.27m during the month under review. 

In 9MFY24, Saudi Arabia (Oil Facility) held the majority proportion with disbursements of $595.18m.