ISLAMABAD: As Pakistan grapples with the current financial crisis, Islamabad managed to secure $3.206 billion in loans in the first two months of the current fiscal year 2023-24 compared to $439.32 million borrowed during the same period of 2022-23, revealed the Economic Affairs Division (EAD) data.
The government budgeted $2.4bn from the International Monetary Fund (IMF) for the current fiscal year and has received $1.2bn as the first tranche of the $3bn Stand-By Arrangement (SBA) in July. However, the EAD data does not reflect it.
Also, there is no mention of $1 billion disbursed by the UAE. If the IMF and UAE inflows are added, total inflows are $5.405 billion during the first two month of current fiscal year.
The $3.206bn include $2bn from Saudi Arabia under the head of time deposit in July 2023. The data further shows that the government had budgeted $4.5bn from foreign commercial banks. However, no money was borrowed under this head in July and August.
The government budgeted $1.5 billion from issuance of bonds, and here too the country is yet to issue bonds, hence no amount has been received under this account.
Pakistan had borrowed $10.844bn from multiple financing sources, including $2.206bn from foreign commercial banks, in 2022-23 against the budgeted foreign assistance of $22.817bn. However, the $10.844bn did not include the rollover of friendly countries’ deposits amounting to $6bn ($3bn each from China and Saudi Arabia), and re-financing of Chinese loans of $1.3bn.
