ISLAMABAD - Multilateral and bilateral donors disbursed $4.21 billion to Pakistan in eight months (July-February) of the ongoing financial year, 50 percent of the annual estimates.

The government had projected to receive $9.18 billion loans from both multilateral and bilateral donors during the current FY 2015-2016, according to the latest data of Economic Affairs Division (EAD). The major part of $4.21 billion constitutes government’s massive borrowing from the foreign commercial banks worth $973 million from July 2015 to February 2016.

As per the government’s budget, only $200 million were to be borrowed from the commercial banks in the entire FY (July 2015 to June 2016).

The government is now dependent on commercial banks for the loans at higher interest rates, after the other donors did not release sufficient amounts to Pakistan.

Pakistan has received $676.63 million from the Asian Development Bank (ADB) during eight months of this FY against the budgeted estimates of $1020.4 million. Meanwhile, the country received $9.9 million from China in February, bringing the total disbursement to $576 million in the current FY.

Another larger component of the assistance was the auction of Eurobond of $500 million. The government has still got a space to auction another bond of the same value before the end of June 2016, as it estimates to generate $1 billion during the current financial year.

Meanwhile, Pakistan will pay $500 million 10-year Eurobond that would mature on March 31. The repayment will not have any adverse implications on the country’s foreign currency reserves, as Pakistan would receive $502.6 million from the International Monetary Fund on account of second last loan tranche.

According to the EAD figures, International Development Association (IDA) had released $43.3 million in February, bringing the total disbursement to $656.25 million. UK disbursed $90.11 million in February, bringing the total disbursement to $251.02 million in the current financial year.

Meanwhile, USA disbursed $14.78 million, International Bank of Reconstruction and Development (IBRD) $16.14 million and IDB $25.75 million in February, bringing the total disbursement to $114.39 million, $56.49 million and $81.45 million, respectively. Kuwait has disbursed $43.52 million, Germany $31 million, IDB (S-Term) $511 million in the current fiscal year. The government has received no assistance from Australia, EU, Italy, Norway and UNDP during the period under review.