Pakistan Secures More Than $7.1 Billion in Foreign Loans During 10 Months of FY24
During the initial ten months (July-April) of the ongoing fiscal year 2023-24, Pakistan procured $7.142 billion from various financing channels, a decrease from the $8.123 billion borrowed during the same period in 2022-23, as per data from the Economic Affairs Division (EAD).
April 2024 witnessed an inflow of $237.24 million compared to $358.61 million in April 2023. Although the government budgeted $2.4 billion from the International Monetary Fund (IMF) for FY23-24 and received $3 billion under the Stand-By Arrangement (SBA), this data is not reflected in the EAD records. Additionally, the $1 billion disbursed by the UAE is not mentioned. Including these IMF and UAE inflows, the total reaches $11.142 billion for the first ten months of the fiscal year.
Of the $7.142 billion, $2 billion was received from Saudi Arabia as a time deposit in July 2023. However, no funds were received from foreign commercial banks, although the government had budgeted $4.5 billion for FY23-24. Similarly, no amount has been received yet from the issuance of bonds, despite a budget allocation of $1.5 billion.
The government’s total estimated financing for FY23-24 is $17.619 billion, comprising $17.384 billion in loans and $234.60 million in grants. During the initial ten months, the country received $889.43 million from the “Naya Pakistan Certificate.”
Multilaterally, $2.866 billion was received, while bilaterally, $877.76 million was obtained during July-April 2023-24. Non-project aid amounted to $4.842 billion, including $3.697 billion for budgetary support and $2.300 billion for project aid.
China disbursed $508.34 million for the JF-17 B project, with an additional $67.39 million allocated against the budgeted $18.54 million. The Asian Development Bank (ADB) disbursed $708.30 million against a budget of $2.086 billion.
Saudi Arabia disbursed $595.18 million under the oil facility, close to the budgeted $600 million, with an additional $62.03 million in the current fiscal year. The USA disbursed $37.02 million, surpassing the budgeted $21.60 million, while Korea disbursed $26.61 million and France $41.66 million.
The International Development Association (IDA) disbursed $1.353 million against the budgeted $1.489 billion, and the International Bank for Reconstruction and Development (IBRD) disbursed $171.67 million against the budgeted $840.36 million. The Islamic Development Bank (Short-term) disbursed $200 million against the budgeted $500 million, with the Asian Infrastructure Investment Bank (AIIB) disbursing $309.95 million and the International Fund for Agricultural Development (IFAD) disbursing $26.29 million against the budgeted $42.68 million.
