ISLAMABAD -  Foreign lenders continued their tight cash release policy for Pakistan in first couple of months of the ongoing financial year (2016-17) as it released only $358.5 million to the country during this period.

Pakistan received only 4.5 percent of the annual estimated amount of $8 billion to be disbursed by foreign lenders in ongoing fiscal year during July and August. The country received $195.1 million in July and $163.4 million in August.

The Asian Development Bank disbursed $82.19 million to Pakistan during July-August period while the bank is estimated to provide $1.05 billion to the country in entire fiscal year. Meanwhile, China gave $50.25 million to Islamabad against its annual projection of $572.3 million, according to the official figures of the Economic Affairs Division.

Pakistan also borrowed $97.84 million as IDB (S-term). The International Bank for Reconstruction and Development (IBRD) released $17.32 million to the government in the first two months of the present financial year.

United States had given $15.59 million to the government of Pakistan. UK released $76.29 million. The countries and institutions like Saudi Arabia, Oman, Norway, Korea, France, Italy, OPEC, UNDP and commercial banks did not release a single penny for Pakistan during July-August this year.

The government had taken aforesaid $395.5 million under foreign economic assistance. The amount would increase with the passage of financial year. The Economic Coordination Committee (ECC) of the Cabinet had already allowed Finance Division to issue sovereign Sukuk in the international capital markets. Generating money from Euro and Sukuk bonds is also part of the foreign economic assistance.

The government had already initiated the process to issue $750 million worth of Sukuk bonds in international market to repay the debt borrowed by Pervez Musharraf government in 2007 at 6.75 percent interest rate. The Ministry of Finance has requested the international as well as local banks to submit their expression of interest to work as financial advisors/lead managers to structure and launch the sovereign Sukuk bonds in international capital market.

The Finance Ministry, in budget documents, had estimated to raise Rs105.5 billion (around one billion dollars) from international capital markets through sovereign loans during the ongoing fiscal year. Moreover, the government had also targeted to generate Rs79.125 billion (around $750 million) through Sukuk bonds.