ISLAMABAD: The government received $1.4 billion loans from foreign commercial banks and $5.7 billion from the donors during the last 10 months (July-April) of the ongoing financial year 2015-16.
According to the latest data of the Economic Affairs Division (EAD), the government has received only 62 percent of the estimated foreign assistance of about $9.18 billion for 2015-16, which also includes grants and loans. The government has heavily depended on the loans from foreign commercial banks as it took $1.4 billion from them in ten months as against the budgeted amount of only $200 million. The government took these loans at massive interest rate of up to 5.25 percent in order to increase its foreign exchange reserves.
The Asian Development Bank (ADB) released $769.78 million in July-April period against the budgeted estimates of $1020.4 million. Meanwhile, China disbursed $619.4 million as against the budgeted amount of $3.05 billion for Pakistan in the current financial year.
The documents showed that government had generated $500 million from the auction of Eurobond. It is worth mentioning here that Pakistan in its last budget planned to generate one billion dollars from the auction of the Eurobond during current financial year.
International Development Association (IDA) released $750 million for Pakistan. UK disbursed $255.5 million, USA released $147.61 million, International Bank of Reconstruction and Development (IBRD) $88.38 million and IDB released $106.37 million during first ten months of the ongoing financial year.
