Rupees 114 billion ($1.3 billion) were disbursed to Pakistan in 2011-12 according to the Economic Affairs Division data, however, budget documents reveal Rs 226.1 billion ($2.6 billion) as revised foreign inflows for the year. The rupee-dollar parity taken for the budget 2011-12 stood at Rs88.
The economic managers budgeted Rs 413.9 billion as foreign inflows for 2011-12 but were compelled to revise the amount downward to Rs 226.1 billion due to three major factors. First, the International Monetary Fund (IMF) did not extend a Letter of Comfort which is a prerequisite for programme lending (budgetary support) by other multilaterals (World Bank and ADB).
This resulted in the non-materialisation of Rs 118 billion budgeted for the year under programme loans. Second, Pakistan had estimated Rs 44 billion under Euro Bonds but this also did not materialise due to international financial crisis as well as Pakistan's domestic economic crunch. And finally, the tensions between Pakistan and the US post-Salala led to considerable reduction in releases under Coalition Support Fund as well as under Kerry Lugar package.
Documents available with Business Recorder reveal that the country received Rs 89 billion ($1.01 billion) from multilaterals; $497.2 million from the Asian Development Bank (ADB), $479 million from the World Bank and $35.4 million from the Islamic Development Bank (IDB) while the amount received from bilaterals stood at Rs 23.9 billion ($271 million).
The US remained the major grant provider to Pakistan during last fiscal year despite the fact that relations remained tense between the two for the latter part of the year. The US released $114 million to Pakistan with $2.7 million released by Bureau for Population, Refugees and Migration (BPRM), $0.4 million by the US government, $1.8 million from Office of US Foreign Disaster Assistance USA OFDA, $108 million from USAID, and $0.5 million released by then United States Department for Agriculture.
During the last fiscal year, Australia released $23 million to Pakistan, Belgium $8.8 million, Canada $13.3 million, China $0.5 million, Denmark $1.6 million, UN $50 million, European Union $13.5 million, Netherlands released $18 million and $86 million from other bilateral donors such as UK, Germany, Switzerland, international private donors and France, etc.