Government borrows $4.25bn during Jul-Oct period

ISLAMABAD: The government has borrowed $4.255 billion from multiple financing sources including $1.166 billion from the International Monetary Fund (IMF) during the first four months (July-October) of 2022-23 compared to $3.898 billion borrowed during the same period of last fiscal year.

The country borrowed $200 million from foreign commercial banks during the first four months of the current fiscal year 2022-23 and that was borrowed in October 2022. However, the country had received $866.43 million from foreign commercial banks during the same period of last year, shows the Economic Affairs Division data.

However, contrary to past practices, the EAD data does not mention from which commercial bank the $200 million was borrowed in October 2022.

Further contrary to past practices, the EAD has also listed the loans taken from the IMF. If the IMF loan is excluded then the country received $3.089 billion during the first four months of the current fiscal year compared to $3.898 billion during the same period of last fiscal year, indicating a slowdown in inflows.

The government procured $2.017billion in external loans in October 2022 mainly due to the disbursement of $1.522 billion by the Asian Development Bank (ADB) compared to $692.57 million during the same month of the last fiscal year.

The government has budgeted foreign assistance of $22.8 billion for the current fiscal year including $7.5 billion foreign commercial banks, $22.655 billion loans, and $161.46 million grants.

The country received $2.322 billion from multilaterals and $497.44 million from bilateral and $1.166 billion from IMF during July-October 2022-23. The non-project aid was $3.668 billion including $3.101 billion for budgetary support and project aid was $587.42 million.

China disbursed $54.93 million in during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year; however, no money was received in October. Saudi Arabia disbursed $400 million against the budgeted $800 million. The USA disbursed $10.34 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $16.63 million and France $8.40 million during the first four months of the current fiscal year.

The Asian Development Bank (ADB) disbursed $1.635 billion during the first four months of the current fiscal year out of $3.202 billion budgeted for the current fiscal year. ADB disbursed $1.522 billion in October 2022. The IDA $459.25 million against the budgeted $1.4 billion, IBRD $41.89 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $13.40 million against the budgeted $3.38 million for the current financial year. IsDB (Short-term) disbursed $155.53 million in the current fiscal year.

Copyright Business Recorder, 2022