Pakistan receives only $2.3b as foreign loan from int’l community in Q1

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Amount is only 11.9 percent of annual budgeted amount of $19.39 billion

2024-10-30T06:58:55+05:00 Imran Ali Kundi

ISLAMABAD  -  Pakistan has received only $2.3 billion as foreign loan from the international community during the first quarter (July to September) of the current fiscal year, which is less than the borrowing in same period of last year.

The country has borrowed $1.308 billion from multiple financing sources during July-September of the year 2024-25 compared to $3.527 billion borrowed during the same period of 2023-24. Meanwhile, the country has received the first tranche of $1.03 billion from the International Monetary Fund (IMF), taking the total loan to $2.3 billion. The amount is only 11.9 percent of the annual budgeted amount $19.393 billion, which is estimated for the current fiscal year, according to the latest data of Ministry of Economic Affairs.

The country received $593.90 million in September 2024 from different sources. The country received $482.96 million from multilateral and $250.29 million from bilateral sources during July-September 2024. The country received $374.79 million under the head of the “Naya Pakistan Certificate” during the first quarter of the current fiscal year 2024-25  The break-up showed that the Asian Development Bank (ADB) released $114.30 million during the period under review compared to the budgeted $1.651 billion for the fiscal year 2024-25. The IDA disbursed $190.91 million in July-September against the budgeted $1.525 billion for the fiscal year 2024-25 and IBRD $86.16 million against the budgeted $550.22 million. The IsDB (Short-term) disbursed $62.17 million during the first quarter against $500 million for the fiscal year 2024-25 and AIIB disbursed $12.69 million, while IFAD disbursed $15 million against the budgeted $40.45 million for the fiscal year 2024-25.

China disbursed $96.76 million in July, however, no money was received in August and September from China. The government has budgeted $134.18 million from China for the fiscal year 2024-25. Saudi Arabia disbursed $6.35 million in the first quarter of fiscal year 2024-25 against the budgeted estimates of $76.02 million for the entire fiscal year. The USA disbursed $36.29 million in the first quarter against the budgeted $20.87 million for the fiscal year 2024-25. The International Monetary Fund (IMF) has projected Pakistan’s gross external financing needs at $18.813 billion for the current fiscal year 2024-25 which is 4.7 percent of the GDP. The Fund in its latest report “2024 Article IV Consultation and request for an Extended Arrangement under The Extended Fund Facility” noted that the country’s external financing need would be $20.088 billion in the fiscal year 2025-26. The report also noted that available financing is $18.175 billion for the current fiscal year 2024-25.

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