LAHORE: The Economic Affairs Division has released a comprehensive report on external financial assistance and loans for Pakistan, revealing a significant shortfall in expected external debt for the last financial year.
The report indicates that in the last fiscal year, only $9.81 billion in external debt was secured, falling short of the projected $17.61 billion.
During June alone, $2.257 billion was borrowed from various external sources. This included a substantial loan of $1.144 billion obtained under multilateral agreements.
Further breakdown shows that $24.6 million was borrowed according to mutual agreements, and $89.1 million was acquired through foreign commercial loans under the Naya Pakistan certificate. In total, $4.28 billion was borrowed under multilateral agreements from July 2023 to June 2024.
The Asian Development Bank (ADB) emerged as the largest source of multilateral loans, providing $1.327 billion, while the World Bank contributed $1.92 billion. The Asian Infrastructure Investment Bank (AIIB) lent $344.9 million, and the Islamic Development Bank provided $250 million.
Moreover, the external financing includes $1.1046 billion from the International Monetary Fund. Additionally, the report highlights that Saudi Arabia contributed $2 billion in external financing in the form of time deposits, with $595.1 million loan allocated for an oil facility.
The total external funding for the last fiscal year from July to June was $1.1046 billion, which included $9.61 billion in loans and $195 million in grants. This funding comprised $5.58 billion in budgetary support and $3.03 billion in project assistance.
Despite these efforts, a staggering $17.62 billion in external funding remained incomplete during the last financial year, underscoring the challenges faced in securing and managing international financial resources.
