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Total provisional external inflows from multiple financing sources were $7.381 billion during July-April of fiscal year 2019-20 against the budgeted amount of $12.958 billion for the entire fiscal year which is around 57 percent of the budgeted amount.

According to the official data of Economic Affairs Division (EAD) the external inflows during the corresponding period of 2018-19 were $8.515 billion (88 percent) against the budgeted amount of $9.692 billion.

Relatively low disbursements during fiscal year 2019-20 may be attributed to outbreak of Covid-19 as the pandemic has completely halted the development activities across the country. Accordingly, every development projects slowed down because of lockdown in the country. However, ease in the lockdown by the government may lead to jacking up project financing in the coming months, the EAD stated.

The government budgeted $2 billion foreign commercial loans. Data reveals that the government has already procured $2.073 billion from foreign commercial banks against $3.183 billion during the same period last year - around 28 percent of the total external loans procured during the first ten months (July-April) of 2019-20.

Copyright Business Recorder, 2020

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