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.
| Foreign Assistance Multilateral+Bilateral (February) | |
|---|---|
| Source | Amount (mn) |
| Multilateral | $226.37 |
| International Development Association-World Bank (IDA) | $165.34 |
| International Bank for Reconstruction and Development (IBRD) | $24.40 |
| Asian Development Bank (ADB) | $23.62 |
| Asian Infrastructure Investment Bank (AIIB) | $6.51 |
| Islamic Development Bank (IsDB) | $3.92 |
| International Fund for Agricultural Development (IFAD) | $2.49 |
| Bilateral | $14.49 |
| USA | $9.06 |
| France | $2.35 |
| Germany | $1.96 |
| Japan | $1.07 |
| Saudi Arabia | $0.05 |
| Total (Multilateral+Bilateral) | $240.86 |
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Posted on: 2024-03-21T12:32:45+05:00
