Pakistan’s external financing stands at $5.97bn in 1HFY24

January 18, 2024 (MLN): The country secured external financing worth $5.968 billion in 1HFY24  from multiple financing sources against the annual budget estimates of $17.62bn for FY24, the latest monthly report by the Economic Affairs Division (EAD) showed.

In December alone, external financing stood at $1.621bn, comprising $1.609bn in loans and the remaining $12.16m in grants from various sources.

Out of the total financing amount, the government obtained a $517.8m loan for non-project aid that includes $172.83m in the form of program/budgetary support assistance to restructure Pakistan’s economy, $249.38 by DPC, while the remaining $95.18m 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 $1.537 in December and $2.968bn during 6MFY24.

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 $83.96m, which was obtained through from Naya Pakistan Certificate in December 2023.

During the review period, the foreign assistance obtained by Pakistan through multilateral sources totaled nearly $1.398bn in December and $2.245bn in 6MFY24.

Amongst the multilateral development partners, in December, the International Development Association-World Bank (IDA) provided $638.1m, followed by the Asian Development Bank (ADB) with $468.96m, Asian Infrastructure Investment Bank (AIIB) with $254.6m, the International Bank for Reconstruction and Development (IBRD) with $29.33m and International Fund for Agricultural Development (IFAD) with $7.83m.

On a cumulative basis, IDA has contributed majorly to multilateral lending, with disbursements totaling $1.04bn, followed by ADB with $589.43m and AIIB with $287.04m.

The total financing through Bilateral development partners stood at $138.72m in December and $723.13m in 6MFY24.

Pakistan received $95.18m from Saudi Arabia (Oil Facility), followed by China with $33.92m, Germany with $7.63m, and the USA with 1.74m during the month under review.

In 6MFY24, Saudi Arabia (Oil Facility) held the majority proportion with disbursements of $595.18m.

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