Fiscal year 2022-23: Govt borrows $10.84bn from multiple sources

ISLAMABAD: The government has borrowed $10.844 billion from multiple financing sources including $2.206 billion from foreign commercial banks during the fiscal year 2022-23 compared to $16.974 billion borrowed during the same period of 2021-22, showing a decline of around 37 percent.

The government had budgeted foreign assistance of $22.817 billion for the fiscal year 2022-23 including $7.5 billion foreign commercial banks.

However, the $10.844 billion does not include the rollover of friendly countries’ deposits amounting to $6 billion (i.e. $3 billion each from China and Saudi Arabia), and the re-financing of Chinese loan of $1.3 billion.

The Economic Affairs Division data shows that the country borrowed $2.206 billion from foreign commercial banks during the fiscal year 2022-23 including $1.306 billion in June 2023. The government had budgeted $7.472 billion under the head of borrowing from foreign commercial banks, however, only $2.206 billion was materialized i.e. registered a shortfall of $5.266 billion during the fiscal year 2022-23.

July-May: Govt borrows $8.613bn from multiple sources

The country received $2.4.863 billion from foreign commercial banks during the same period of 2021-22.

The country received $1.166 billion from the International Monetary Fund (IMF) during the fiscal year 2022-23. 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 $9.678 billion during the fiscal year 2022-23 compared to $16.974 billion during the same period of 2021-22, indicating the slowdown in inflows.

The government procured $2.231 billion in external loans in June 2023. The country received $788.97 million under the head of “Naya Pakistan Certificate” during the fiscal year including $46.03 million in June 2023.

The country received $5.224 billion from multilaterals, $1.458 billion from bilateral and $1.166 billion from IMF during July-June 2022-23. The non-project aid was $8.779 billion including $7.419 billion for budgetary support and project aid was $2.064 billion. The Asian Development Bank (ADB) disbursed $2.266 billion during the period under review compared to the budgeted $3.202 billion for the fiscal year 2022-23. The ADB disbursed $229.91 million in June 2023.

China disbursed $128.03 million during the fiscal year, however, no amount was received in June against the budgeted $49.02 million for the entire fiscal year.

Saudi Arabia disbursed $1.182 billion against the budgeted $800 million under the head of oil facility during the fiscal year 2022-23. The USA disbursed $31.13 million during the period under review against the budgeted $32.49 million for the fiscal year. Korea disbursed $27.42 million and France $33.81 million during the fiscal year 2022-23.

The IDA disbursed $1.907 billion against the budgeted $1.388 billion during the fiscal year 2022-23 including $429.33 million in June, IBRD $290.06 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million for the financial year.

The IsDB (short-term) disbursed $161 million in the fiscal year 2022-23. AIIB disbursed $558.96 million, while ECO (Trade Bank) disbursed $64.59 million in 2022-23.

Copyright Business Recorder, 2023