Pakistan’s external financing stands at $332.6m in February

March 21, 2024 (MLN): The country secured external financing worth $332.6 million in February 2024 from multiple financing sources, the latest monthly report by the Economic Affairs Division (EAD) showed.

The total amount of $332.6m comprises $317.95m in loans and the remaining $14.65m in grants from various sources.

The total external financing in 8MFY24 stood at $6.68 billion against the annual budget estimates of $17.62bn for FY24.

Out of the total financing amount, the government obtained a $93.45m loan for non-project aid, which was in the form of program/budgetary support assistance to restructure Pakistan’s economy. Cumulatively in 8MFY24, loans for non-project aid amounted to $4.63bn.

The Ministry of Economic Affairs noted that the country continued to depend on foreign commercial borrowing as it amounted to $91.74m in February 2024 and $686.82m in 8MFY24.

Going into details made available by EAD, the disbursement from bilateral and multilateral development partners maintained a strong trend as it totaled $240.86m in February and $3.48bn during 8MFY24.

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 $226.37m in February and $2.64bn in 8MFY24.

Amongst the multilateral development partners, in February, the International Development Association-World Bank (IDA) led with $165.34m in funding, followed by the International Bank for Reconstruction and Development (IBRD) with $24.4m.

The Asian Development Bank (ADB) allocated $23.62m, while the Asian Infrastructure Investment Bank (AIIB) provided $6.51m.

The Islamic Development Bank (IsDB) contributed $3.92m in short-term financing, and the International Fund for Agricultural Development (IFAD) supported with $2.49m.

On a cumulative basis, IDA has contributed significantly to multilateral lending, with disbursements totaling $1.22bn, followed by ADB with $643.62m and AIIB with $299.47m.

The total financing through Bilateral development partners stood at $14.49m in February and $847.95m in 8MFY24.

Pakistan received $9.06m from the USA, followed by France with $2.35m, Germany with $1.96m, Japan with $1.07m, and Saudi Arabia with $0.05m during the month under review. 

In 8MFY24, Saudi Arabia (Oil Facility) held the majority proportion with disbursements of $595.18m.

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