Pakistan’s external financing stands at $416m in November

December 19, 2023 (MLN): The country secured external financing worth $415.99 million in November 2023 from multiple financing sources, the latest monthly report by the Economic Affairs Division (EAD) showed.

The total amount of $415.99m comprises $400.77m in loans and the remaining $15.21m in grants from various sources.

The total external financing in 5MFY24 stood at 4.285 billion against the annual budget estimates of $17.62bn for FY24.

Out of the total financing amount, the government obtained a $208.89m loan for non-project aid that includes $108.89m in the form of program/budgetary support assistance to restructure Pakistan’s economy, while the remaining $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 $314.75m in November and $1.369bn during 5MFY24.

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 $101.24m, which was obtained through from Naya Pakistan Certificate in November 2023.

During the review period, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $185.48m in November and $786.64m in 5MFY24.

Amongst the multilateral development partners, in November, the International Development Association-World Bank (IDA) provided $99.23m, followed by the Asian Development Bank (ADB) with $32.96m, OPEC Fund with $27.8m, the International Bank for Reconstruction and Development (IBRD) with $20.91m,  and the Asian Infrastructure Investment Bank (AIIB) with $4.58m.

On a cumulative basis, IDA has contributed significantly to multilateral lending, with disbursements totaling $402.45 million, followed by ADB with $120.47m and IsDB (short term) with $100m.

The total financing through Bilateral development partners stood at $129.27m in November and $583m in 5MFY24.

Pakistan received $100m from Saudi Arabia (Oil Facility), followed by France with $12.66m, China with $7.92m, USA with $8.25m, Germany with $0.31m and Japan with 0.14m during the month under review.

In 5MFY24, Saudi Arabia (Oil Facility) held the majority proportion with disbursements of $500 million.

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