ISLAMABAD - Pakistan's borrowing from commercial banks would go beyond $4 billion during outgoing fiscal year mainly due to a slowdown of disbursements from multilateral creditors.

Pakistan has borrowed $3.49 billion from the commercial banks during eleven months (July to May) of the ongoing fiscal year. 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.

Borrowing from commercial banks would go beyond $4 billion by the end of current fiscal year. "The pace of commercial borrowings showed that it might cross $4 billion mark in the outgoing financial year," an official of Economic Affairs Division (EAD) said.

Borrowing from commercial banks sharply increased following a slowdown of disbursements from multilateral creditors.

The Asian Development Bank (ADB) has disbursed $723 million to Pakistan in eleven months, which is around 59 percent of the annual projection of $1.22 billion.  The Islamic Development Bank gave $987.22 million (short-term loan for July-May period for crude oil import) that is 64 percent of the annual estimates of $1.55 billion.

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.

Pakistan has secured $10.45 billion from the external sources during eleven months (July to May) of the ongoing fiscal year. Major part of the foreign borrowing $3.5 billion was through the commercial banks.

The PML-N government had largely depended on borrowing from the commercial banks during its five years tenure.

In 2013-14, the government procured $322.5 million from the commercial loans followed by $150 million in 2014-15. Similarly, the government had borrowed $1.4 billion from the commercial banks in 2015-16 and procured $4.367 billion from commercial loans in 2016-17.

According to the documents of EAD, the break-up of borrowing from commercial banks showed that Pakistan had borrowed $748 million from the Credit Suisse-led consortium of banks during July to May period of the current financial year. The consortium consists of Credit Suisse AG, United Bank Limited and Allied Bank Limited.

The government procured $1 billion from China Development Bank and $200 million from Bank of China. Similarly, Pakistan had borrowed $1 billion commercial loans from Industrial and Commercial Bank of China Limited (ICBC). The government had signed an agreement to procure $200 million commercial loans from Standard Chartered Bank (SCB)-London on October 31, 2017 and procured the entire amount including $32.66 million in January.

The country procured $267 million commercial loans from Citibank for budgetary support and $55.86 million from Dubai Bank in the current fiscal year.