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ISLAMABAD: Pakistan incurred foreign debt of $9.432 billion from multiple financing sources in the first half months (July-December) of 2021-22 including $2.031 billion from foreign commercial banks (21.53 percent) against the total budgeted external loans of $14.088 billion for the entire fiscal year.

The Economic Affairs Division (EAD) data exclusively available with Business Recorder shows that the government received $3 billion as time deposit in December.

The government has budgeted estimates of foreign assistance of $14.088 billion for the current financial year, including $13.871 billion loans and $217.44 million grants from multilateral and bilateral sources.

The external inflows during the corresponding period (July-December) of fiscal year 2020-21 were $5.688 billion including $2.054 billion from foreign commercial banks against the budgeted amount of $12.233 billion. The country received $4.560 billion from multiple financing sources in December 2021 including $502.05 million from foreign commercial banks.

The total receipt of $9.432 billion constitutes $2.907 billion from multilateral, $ 150.19 million from bilateral, $2.031 billion from foreign commercial banks, and $1.041 billion from issuance of bonds and three billion dollars time deposit.

The government borrowed $2.031 billion from foreign commercial banks during the first half of the current fiscal year including $1.140 billion from Dubai Bank (including $420 million in December), $487.26 million from SCB (London) including ($9.05 million in December), $61 million from Ajman Bank PJSC, and $343.50 million from Suisse AG, UBL and ABL.

Among multilateral development partners, mainly the Asian Development Bank provided $1.062 billion, the World Bank disbursed $965.73 million, the AIIB $37.77 million, and IDB (S-Term) $800.69 million. China disbursed 1.07 million dollar in December; however, the country received $74.51 million in the first half (July-December) of the current fiscal year, the USA $32.60 million, Korea $3.23 million, the UK $14.54 million, and Germany $12.07 million.

Copyright Business Recorder, 2022

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