Sunday, December 4, 2022
HomeGeneralTotal foreign loans hit $3.2 billion in July-Sept

Total foreign loans hit $3.2 billion in July-Sept

ISLAMABAD: According to the latest statistics released on Monday, Pakistan obtained total foreign loans of $3.2 billion in the first quarter (July-September) of current fiscal year, compared to $2.9 billion in the same period of fiscal year 2020-21.

The demand for foreign loans may increase further as a result of the expanding current account deficit, which reached $3.4 billion in the first quarter of the current fiscal year, in order to avert depletion of foreign exchange reserves. In the current fiscal year, Pakistan aims to raise $14 billion in foreign loans.

Despite the government’s failure to revive the IMF’s $6 billion Extended Fund Facility (EFF), Pakistani authorities were able to secure $1.6 billion ($1.595 billion) from multilateral creditors such as the World Bank‘s IDA, which provided a $531.25 million loan in the first quarter of this fiscal year.

The government had obtained $1.485 billion from multilateral creditors during the same first quarter of the last fiscal year 2020-21. In the absence of IMF’s health certificate, Islamabad availed $111.51 million from the WB’s IBRD facility in the first quarter of the current fiscal year.

Also read: Pakistan receives $397 million loan from the World Bank

The Islamic Development Bank (IDB) disbursed a short-term loan worth $446.31 million for commodity and petroleum products financing. The Asian Development Bank (ADB) disbursed $459.95 million during the first quarter of the current fiscal year.

In the last fiscal year 2020-21, Pakistan had obtained $1 billion safe deposits from China in order to pay back the same amount to Saudi Arabia. However, in the current fiscal year, the government generated major dollar inflows from multilateral creditors, issuance of international bonds, and thirdly through commercial banks respectively during the first quarter of the ongoing fiscal year.

The government fetched $1.041 billion through issuance of international bond in the first quarter of this fiscal year that helped it generate dollar inflows in shape of loans for obtaining $3.2 billion.

According to official data of Economic Affairs Division (EAD) the bilateral creditors disbursed $110.41 million in the first quarter of this fiscal year as China provided $73.35 million, France $0.53 million, Germany $2.26 million, Italy zero amount, Japan $1.02 million, Korea $1.59 million, Kuwait zero amount, Oman $0.13 million, Saudi Arabia $1.03 million, UK $3.15 million, and USA $27.27 million. The government had raised $105 million through bilateral creditors in the first quarter of the last fiscal year 2020-21.

Also read: TPL Corporation and Bank of Punjab Long Term Investment and Construction Financing Loans.

Among the multilateral creditors, the Asian Infrastructure Investment Bank (AIIB) disbursed $37.77 million, EIB and EU zero amount, WB’s IBRD $111.51 million, WB’s IDA $531.25 million, IDB $1.61 million and IDB’s short term $446.31 million, IFAD $6.08 million, Multi-Donor Trust Fund (MDTF) $0.83 million, and DFID zero amount.

The government obtained $61 million from Ajman Bank PJSC, $215 million from Dubai Bank, and $181.54 million from SCB (London) in the first quarter of the current fiscal year. In totality the government raised total foreign loans and grants to the tune of $3.2 billion in the first quarter of the current fiscal year. It had budgeted to raise foreign loans of $14.088 billion in whole fiscal year 2021-22 in order to meet all its due obligations.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments