- Pakistan receives $259 million from bilateral creditors.
- Multilateral creditors pay $721 million to Islamabad.
- $19.39 billion in foreign loans planned for the current fiscal year.
ISLAMABAD: In its attempt to address the various challenges facing the economically cash-strapped country, the current government led by Prime Minister Shehbaz Sharif has secured $1.72 billion in foreign loans from multilateral creditors and bilateral relations during the first four months (July-October). ) of the current financial year, News reported Wednesday.
The government borrowing figures come despite no international bond issuances or deposit refinancings so far.
Islamabad, after strenuous efforts, managed to get approval from the International Monetary Fund (IMF) Executive Board for the $7 billion Extended Financing Facility (EFF) in September.
The aforementioned lending statistics are other than the IMF’s $1 billion tranche, which, if included, would bring total foreign loans for the period to $2.72 billion.
However, the Economic Affairs Division (EAD) did not show the IMF loan in its data as it supports the balance of payments (BoP) and is recorded in the balance sheet of the State Bank of Pakistan. For comparison, Pakistan received $4.25 billion in foreign loans during the same period of the previous fiscal year (2023-2024).
For the current financial year, Islamabad is planning $19.39 billion in foreign loans from multilateral and bilateral creditors.
This includes $9 billion in foreign deposits – $5 billion from Saudi Arabia and $4 billion from China – as well as $1 billion from an international bond issue.
According to EAD data, Pakistan received $259 million from bilateral creditors in the first four months of the fiscal year.
The main contributions include China ($97.58 million), France ($89.64 million), Germany ($11.29 million), Japan ($9.71 million), Korea ($7.59 million), Saudi Arabia ($6.35 million) and the United States ($37.32 million).
Multilateral creditors disbursed $721 million during the same period.
Major contributors include Asian Development Bank ($173.05 million), Asian Infrastructure Investment Bank ($17.41 million), World Bank ($266.64 million) under IDA (concessional loans) and $97.19 million under the IBRD, the $100 million from the Islamic Development Bank (short-term loans). loan) and $50.41 million, IFAD $15.56 million and the OPEC Fund $0.75 million.
Besides, the government secured $200 million in commercial loans and $547 million through Naya Pakistan certificates in the first four months of the current fiscal year.