July 26, 2019 (MLN): Pakistan received a sum of $10.8 billion in FY-2019 as foreign economic assistance from multiple bilateral and multilateral sources, briefed Economic Affairs Divisions (EAD) in its report on disbursement of foreign assistance. In the month of June, these external inflows amounted to 999 million.
Foreign assistance extended from multilateral sources during the year amounted to $2.1 billion, with the IDB (S-term) emerging as the main source having lent $819 million. The second highest source of multilateral financing is World Bank with an assistance of $652.7 million during the said period. Another significant source of assistance was Asian Development Bank, with a disbursement of $541 million.
Coming to Bilateral donors, China emerged as the greatest source of assistance during the year, with a loan of $2.1 billion. After accounting for all the assistance from bilateral donors, the collective disbursement during the year amounted to $2.6 billion.
“The net addition to the external public debt was only $2.29 billion which is the lowest of last three years,” says a statement issued by the Economic Division on Friday.
Economic Affairs Division further said that for the future, the government is working on a strategy whereby procurement of long term concessional financing from multilateral and bilateral sources is a priority.
With the restoration of confidence of international financial institutions and good prospects of budgetary support, the government is expecting very strong inflows from its development partners this year.
Acquiring commercial financing is not a priority; the government resorts to commercial borrowing only as contingency measure to strengthen foreign exchange reserves and to maintain stability in the market. These commercial finances are acquired after full due diligence, at the best possible rates and have the approval of competent forum which in this case is the Federal Cabinet, concluded the statement.
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