ISLAMABAD: The government has borrowed $5.114 billion from multiple financing sources, including $1.166 billion from the International Monetary Fund (IMF), during the first five months (July-November) of 2022-23 compared to $4.699 billion borrowed during the same period of last fiscal year.
The Economic Affairs Division (EAD) data showed that the country has not received foreign assistance from China for the second consecutive month in November, and only $54.93 million was received during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year. Further, the borrowing from commercial banks also slowed down and no money was received in November from this source.
The country borrowed $200 million from foreign commercial banks during the first five months of the current fiscal year 2022-23 and that was borrowed in October 2022. However, the country had received $1.529 billion from foreign commercial banks during the same period of last year, shows the EAD data.
However, contrary to the past practices, the EAD data does not mention from which commercial bank the $200 million was borrowed in October 2022.
Q1 govt external borrowing climbs to $2.234bn
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 $3.948 during the first five months of current fiscal year compared to $4.699 billion during the same period of last fiscal year, indicating a slowdown in inflows.
The government procured $846.76 million external loans in November 2022 mainly due to disbursement of $500 million by the Asian Infrastructure Investment Bank (AIIB) compared to $692.57 million during the same month of the last fiscal year.
The country received $139.28 million under the head of “Naya Pakistan Certificate” during the first five months of current fiscal year, including $69.75 million in November 2022.
The government has budgeted foreign assistance of $22.817 billion for the current fiscal year, including $7.5 billion foreign commercial banks.
The country received $3.006 billion from multilaterals and $602.86 million from bilateral and $1.166 billion from the IMF during July-November 2022-23. The non-project aid was $4.457 billion, including $3.785 billion for budgetary support and project aid was $656.37 million.
China disbursed $54.93 million 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 and November. Saudi Arabia disbursed $500 million against the budgeted $800 million. The USA disbursed $10.59 million during the period under review against the budgeted $32.49 million for the current fiscal year. South Korea disbursed $18.38 million and France $8.64 million during the first five months of the current fiscal year.
The Asian Development Bank (ADB) disbursed $1.676 billion during the first five months of the current fiscal year out of $3.202 billion budgeted for the current fiscal year. The ADB disbursed $41.66 million in November 2022, the IDA $548.07 million against the budgeted $1.4 billion, the IBRD $75.89 million against the budgeted $1.246 billion and the Islamic Development Bank disbursed $15.30 million against the budgeted $3.38 million for the current financial year. The IsDB (short-term) disbursed $161 million in the current fiscal year.
Copyright Business Recorder, 2022
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