Pakistan’s external financing stands at $321m in September

October 17, 2023 (MLN): The country incurred external loans of $320.92 million in September 2023 from multiple financing sources, the latest monthly report by the Economic Affairs Division (EAD) showed.

This takes the total external loans in 3MFY24 to 3.53 billion against the annual budget estimates of $17.62bn for FY24.

Out of $320.92m, the government obtained a $206.96m loan for non-project aid that includes $104.06m in the form of program/budgetary support assistance to restructure Pakistan’s economy, $2.9m for short-term credit, while $100m has been obtained for SFD oil facility 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 $257.24m in September and $814.53m of foreign economic assistance during 3MFY24. 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 $63.68m, which was obtained through from Naya Pakistan Certificate in September 2023.

During the month, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $154.61m in September and $490.48m in 3MFY24.

Amongst the multilateral development partners, in September, the International Development Association-World Bank (IDA) provided $79.86m, followed by the International Bank for Reconstruction and Development (IBRD) with $41.98m, the Asian Development Bank (ADB) with $22.97m, Asian Infrastructure Investment Bank (AIIB) with $6.89m, and the IsDB (Short-term) with $2.9m.

The monthly bulletin revealed that the collective disbursement from bilateral donors amounted to $102.63m in September and $324.05m during the 3MFY24, wherein Pakistan received $100m from Saudi Arabia, followed by the USA with $2.33m, China with $0.29m, and Japan with $0.01m during the month under review.

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