ISLAMABAD - Pakistan has made foreign borrowing worth $750million during May to sustain its foreign exchange reserves that are tumbling due to repayment of loans and current account deficit.

The country has secured $10.45 billion from the external sources during eleven months (July to May) of the ongoing fiscal year. The country has surpassed the budgeted estimates of $8.09 billion for the entire fiscal year 2017-18.

Keeping in view the current trend, the government is all set to break the previous year's record of borrowing around $10.4 billion in a single year. Pakistan's external borrowing could reach to $12 billion during ongoing fiscal year.

Pakistan is continuously borrowing from external as well as local sources during last few years. The country's overall external debt and liabilities had increased to a record $91.8 billion.

The International Monetary Fund (IMF) had recently estimated Pakistan's external debt and liabilities could peak to $144 billion in the next five years.

Meanwhile, the domestic debt has enhanced to Rs16 trillion as against Rs9.5 trillion in 2013. The PML-N government increased external debt by 49 percent and domestic debt by 69 percent.

Interest payments as a component of current expenditure rose to Rs1620 billion in 2018-19 from Rs925 billion in 2013. The country's foreign exchange reserves are sharply depleting despite massive borrowing. Foreign exchange reserves which stood at $16.8 billion as of June 14 in which $10.26 billion held by the State Bank of Pakistan and $6.5 billion by commercial banks.

The reserves would remain under pressure, as the country would have to repayment $2.5 billion in next months. Similarly, the widening current account deficit is also depleting the reserves. The CAD has already widened to $14.03 billion during ten months (July to April) of the FY2018 as against the full year's target of $8.9 billion.  The documents of Economic Affairs Division showed that Pakistan borrowed $10.45 billion from external sources. Major part of the foreign borrowing $3.5 billion was through the commercial banks. The government had projected only $1 billion borrowing from the commercial banks during the entire ongoing financial year.

However, the government had gone beyond the limit in eleven months to sustain its foreign exchange reserves. The government is still in negotiations with some Chinese banks and expected to sign more agreement in coming months to get more commercial loans for budgetary support.

According to the official data, the government of Pakistan had raised $2.5 billion from the auction of Euro and Sukuk bonds in international market. Pakistan in November had successfully executed $1.0 billion five years Sukuk and $1.5 billion ten years Eurobond transactions at profit rates of 5.625 percent and 6.875 percent respectively.

The break-up of loans received showed that the Asian Development Bank provided $722.9 million during eleven months of the current fiscal year. Pakistan had projected to receive $1.22 billion during entire ongoing financial year.

The International Development Association of the World Bank has given loan of $267.62 million in eleven months as against the annual projection of $975.3 million. International Bank for Reconstruction and Development has provided loan of $177.33 million and the Islamic Development Bank gave $987.22 million (short-term loan for July-May period for crude oil import). Pakistan also took $169.85 million from the United Kingdom during the period under review.

China gave a loan of $1.64 billion to Pakistan during July to May period of the year 2017-18.

The USA released $101.65 million in the current fiscal year 2017-18 against the estimates of $117.56 million.