KARACHI - Despite hectic efforts by the federal government, the disbursement of foreign loans, assistance and grants remained stagnant, at 1.844 billion dollars in first seven months of the current financial year over the disbursement of foreign economic assistance during the corresponding period of last fiscal. In last fiscal the country had received 1.886 billion dollars worth foreign loans, assistance and grants from the donors during July-January period while the disbursement of external assistance in July-January FY09 was almost same. The disbursement of long-terms loans and assistance amounted to $1.243b in the current financial year while the short loans and assistance amounted to $601m. The short-term disbursement in this fiscal showed an increase of about $100m over 508 million dollars provided by the donors in the same period of last fiscal. Pakistan government had raised 1.566 billion dollars through amortization from July-January period of FY09, whereas, in the same period last fiscal the foreign exchange mopped up through amortization stood at only 726 million dollars. Thus, the foreign exchange raised through this option was higher by 115 per cent ($840 million) in this fiscal when compared with the corresponding period of the last fiscal. The current transfers of the foreign exchange in seven months of the ongoing financial year remained at 5.961 billion dollars, slightly lower than 6.562 billion dollars current transfers during the same period of last fiscal. The transfer of workers remittances dominated a major chunk of 4.277 billion dollars in the current transfers in this fiscal that showed a healthy growth of 654 million dollars when matched with 3.623 billion dollars worth inflow of remittances in last fiscal during the period under review. The latest balance of payment position also pointed out a huge decline in the gross reserves with the State Bank of Pakistan that fell to 7.63 billion dollars during July-January FY09 as against 12.917 billion dollars reserves in July-January FY08. In 2007-08 the country had received a total of 2.67 billion dollars as foreign loans and assistance while in the current financial year the federal government was in a bid to enhance the inflow of foreign economic assistance with the aim to stabilize the foreign exchange reserves and to strengthen the national economy. Currently, the economic team of Pakistan was in Dubai to discuss the economic performance with the International Monetary Fund and to seek 4.5 to 5 billion dollars more from the fund. Under the Stand-by Facility Pakistan had demanded 7 to 8 times over and above its quota from the IMF, but the fund had approved only five times quota for this country. In November last year the IMF had approved 7.60 billion dollars worth Stand-by Facility for Pakistan to bail out the country from the economic crisis. The fund had released 3.1 billion dollars from the Stand-by Facility and after the completion of performance review the IMF was expected to release more than 800 million dollars. If the fund approved further increase in the quota of Pakistan, the disbursement of economic assistance and the foreign exchange reserves of the country would improve substantially in the coming months.