ISLAMABAD: The government received no amount of the budgeted $9 billion time deposits during the first four months (July-October) of 2024-25 compared to $3 billion materialized during the same period of last fiscal year.
The Economic Affairs Division (EAD) data shows that government has budgeted time deposits of $9 billion including $5 billion Saudi Arabia time deposit and $4 billion SAFE China deposit for the current fiscal year, however, no money was received during the first four months (July-October) under this head.
Sources said that government had budgeted $3 billion time deposit for the last fiscal year 2023-24 including $2 billion from Saudi Arabia and one billion from UAE. The $3 billion time deposit from KSA and UAE was materialized in the first month of last fiscal year, however, during the first four months of current fiscal year no amount was materialized under this head.
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The data further shows that the government budgeted $3.779 billion from the foreign commercial banks for the fiscal year 2024-25. The country received $200 million under this head and that was in September. The country did not borrow from commercial banks in July, August and October, as per EAD data.
The government has budgeted $19.393 billion from multiple financing sources for the fiscal year 2024-25 including $19.216 billion loans and $176.29 million grants. However, this does not include any amount from International Monetary Fund (IMF).
The Fund report “2024 Article IV Consultation and request for an Extended Arrangement under the Extended Fund Facility” noted that the Pakistani authorities have stated that they have secured adequate financing from international partners to support its economic reform program and durably increase external buffers.
The current projections suggest that, after incorporating pre-existing financial commitments, rollovers and the envisaged IMF program, residual financing needs during the program period will amount to $5 billion.
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“To close this gap for the first 12 months of the arrangement, we have secured financing commitments from bilateral and multilateral partners, including China, Saudi Arabia, the Asian Development Bank and the Islamic Development Bank.
Further renewed commitments were received from bilateral partners to continue rolling over short-term claims (including loans, swaps and deposits) for the duration of the program, and will seek to lengthen the maturity of these claims as they roll over, which would reduce the burden of, and risks around, high gross financing needs”, the authorities added.
Copyright Business Recorder, 2024
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