Country receives only $2.3 billion foreign loans

Absence of IMF programme

ISLAMABAD - Multilateral and bilateral sources had disbursed only $2.3 billion loan to Pakistan in six months of the current fiscal year in the absence of International Monetary Fund’s programme.

The $2.3 billion loan disbursements from July through December are equal to only 23 percent of the original annual estimates. Pakistan had estimated to receive $10 billion as foreign assistance from bilateral, multilateral and banking sources during FY2019. In December alone, the country had borrowed only $422.9 million from aforesaid sources. In July to December last fiscal year, Pakistan had received $5.9 billion as loan from the multilateral and bilateral sources.

However, the government had received only $2.3 billion during current financial year. The $3-billion loan that Pakistan received from Saudi Arabia and $1 billion from United Arab Emirates (UAE) is not part of the aforesaid loan. The Saudi Arabian and UAE’s assistance has been shown on books of the State Bank of Pakistan (SBP). Pakistan’s foreign exchange reserves held by central bank have increased to $8.64 billion after receiving loans from Saudi Arabia and UAE in last few days.

The government had approached friendly countries like Saudi Arabia, UAE and China to meet the financing gap during current fiscal year after multilateral sources adopted tight cash released policy. “Multilateral and bilateral sources will restore the policy lending once Pakistan enters into IMF programme,” said an official of the Economic Affairs Division. He further said that IMF programme would enable the multilateral sources like World Bank, Asian Development Bank and others to release loans to Pakistan.

According to the data of Economic Affairs Division, the country had borrowed $499.4 million from commercial banks in July-December of the current financial year. The previous government had budgeted estimates of $2 billion from foreign commercial banks for 2018-19. The Asian Development Bank (ADB) disbursed $339.06 million in first six months of the ongoing fiscal year against the budgeted estimates of $1.38 billion. Pakistan received $835.62 million from China in the current fiscal year against the budgeted estimate of $840.99 million. USA disbursed $34.20 million, International Development Association (IDA) $99.42 million, UK $70.02 million, France $41.83 million, and Germany $10.43 million in the current fiscal year so far.

The Islamic Development Bank (IDB) had given loan of (S-Term) $272.46 million during six months of the year 2018-19. Pakistan is likely to receive $279 million under oil financing facility from the IDB in next few days that would reduce the pressure on import bill of the country. The IDB had activated its three-year $4.5-billion oil financing facility for Pakistan in July last year. The International Islamic Trade Finance Corporation (ITFC), a member of the IDB Group, would roll over a loan of $4.5 billion to Pakistan in next three years, $1.5 billion in each fiscal year.

 

ePaper - Nawaiwaqt