ISLAMABAD   -  The Asian Development Bank (ADB) on Saturday announced to provide $2.2 billion to Pakistan in next fiscal year 2019-2020. “ADB will give $3.4 billion in budgetary support. I had a meeting with Werner Liepach, DG ADB Saturday to agree on the ADB programme. The ADB will provide $3.4 billion in budgetary support to help with reforms and stabilization of the economy,” Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh said on his social media account. He further said this support is in addition to the project portfolio with an estimated disbursement of up to $1 billion in the coming years. “$2.2 billion will be released this fiscal year, starting in the first quarter of FY 2019-20. This will help the revenue and the external account position,” he added.

According to ministry of finance, the loan would broadly cover such policy reform areas as trade competitiveness, energy sector and capital markets development. Director General Asian Development Bank (ADB), Werner Leipach and Country Director ADB, Ms Xiaohong Yang called on Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh. The meeting discussed the matters relating to ADB’s upcoming operations in Pakistan. The Director General briefed the Adviser that in addition to strong project portfolio, the Bank is also keen to provide balance of payment financing to support Government of Pakistan’s structural reform agenda. The Adviser thanked the visiting Director General for strong support and reiterated government’s commitment to undertake the much-needed reforms to achieve stability and economic turnaround.

Pakistan has planned to borrow almost $20 billion in shape of loans and grants from multilateral donors as well as foreign countries during the next fiscal year. The government has estimated foreign assistance of Rs3.032 trillion (around $20 billion) for 2019-20 as against revised Rs1.403 trillion. The government’s external loan would show an increase of 116 percent in next fiscal year. The breakup showed that government would take Rs3 trillion as loans and Rs28.496 billion under the head of grants for next fiscal year. Under the head of outside Public Sector Development Programme (PSPD) resources, Rs13.796 billion has been estimated for next fiscal year.

Pakistan would borrow Rs484.701 billion from Saudi Arabia for the next fiscal year. The government had budgeted Rs 5.483 billion for the current fiscal year from Saudi Arabia which was later revised to Rs 8.894 billion. The government has budgeted Rs357.450 billion from the IMF for the next fiscal year for budgetary support. Pakistan would generate Rs450 billion from Sukuk bonds in 2019-20. China would give loan worth of Rs60.9 billion to Pakistan in upcoming fiscal year as compared to revised Rs 502.062 billion of this year. The government has budgeted, no amount under the China Safe Deposits which were zero in the last budget but later revised to Rs 275 billion.

The government has budgeted estimates of Rs148.272 billion from the International Development Association (IDA) against Rs 68.253 billion for 2018-19, later revised to Rs 72.577 billion. According to the estimates of foreign assistance, the government has budgeted Rs 166.139 billion from Islamic Development Bank (IDB) for the next fiscal year against Rs 119.479 billion for the current fiscal year which was later revised to Rs 101.413 billion. The government has budgeted estimates of Rs 17.839 billion from International Bank for Reconstruction and Development (IBRD) for the next fiscal year against Rs 23.668 billion for the current fiscal year which was later revised to Rs 22.561 billion.