ISLAMABAD: Pakistan borrowed $5.4496 billion in external loans during the first three months of the current fiscal year, marking a 200% increase from the same period last year, according to Economic Affairs Division documents.
The government’s external borrowing rose by $3.63 billion between July and September, compared with $1.81 billion borrowed during the first quarter of the previous fiscal year, highlighting an increased reliance on foreign financing.
Documents show that Pakistan obtained $5.4496 billion in external loans from July to September. The amount represents a substantial increase from the $1.81 billion secured during the corresponding period of the previous fiscal year.
The borrowing surge amounted to an additional $3.63 billion year-on-year. In rupee terms, Pakistan borrowed external debt equivalent to Rs1,515 billion during the three-month period, more than Rs1,000 billion above the amount recorded in the same period last year.
International bonds account for major share
According to the Economic Affairs Division, Pakistan raised $2.94 billion through international bonds during the first quarter of the current fiscal year, making this one of the major sources of external financing.
The government also received $942.7 million through Naya Pakistan Certificates, while $300 million was obtained from foreign commercial banks.
These sources accounted for a significant portion of the country’s external borrowing between July and September.
World Bank, ADB among international lenders
Pakistan received $894.1 million from international institutions during the first three months of the fiscal year. A further $58.1 million came from various countries, according to the documents.
Among the multilateral lenders, the World Bank provided $359 million, while the Asian Development Bank (ADB) extended $153.5 million.
The figures reflect financing secured through international institutions and other countries as the government continued to rely on external sources to meet its funding requirements.
Non-project loans make up bulk
The documents further show that the external debt acquired during the first quarter included more than Rs1,260 billion in non-project loans.
An additional Rs254.8 billion was received through project loans intended for various initiatives. The figures indicate that non-project financing made up the larger share of Pakistan’s external borrowing during the July-September period.
Overall, the sharp increase in external loans points to a significant rise in the government’s reliance on foreign financing compared with the first quarter of the previous fiscal year.
