Inflow of foreign loans slows in fiscal year start

2018-09-05T02:00:15+05:00 Imran Ali Kundi

ISLAMABAD - Pace of taking foreign loan had remained slow during first month of the current fiscal year, as Pakistan borrowed only around 5 percent of the annual estimated foreign loan in July this year.

Pakistan had secured only $468.31 million as foreign assistance in the first month (July) of current financial year 2018-19, according to the latest data of Economic Affaires Division. The country had estimated to borrow $9.69 billion as foreign loan during current fiscal year.

"The inflow of foreign loans normally remained slow during initial months of a fiscal year," said an official of the ministry of finance. He further said that pace of foreign loans would increase in the months to come as Pakistan needs additional $9 billion to run the business including repayment of previous loans and financing the current account deficit.

According to the EAD figures, Pakistan had received $70 million worth of two commercial loans from Noor Bank PJSC and consortium-led by Suisse AG, UBL, ABL. Noor Bank disbursed $20 million in July out of the total committed amount of $130 million. The previous government had budgeted estimates of $2 billion from the commercial banks during the year 2018-19.

The Asian Development Bank (ADB) had disbursed $27.45 million in July against the budgeted estimates of $1.38 billion.

The country received $289.91 million from China in July against the budgeted estimate of $840.99 million.

US disbursed $14.20 million, International Development Association (IDA) $23.14 million, France $10.97 million, Kuwait $3.07 million, Saudi Arabia $16.5 million, UK $9.19 million and Germany $1.58 million in July.

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