Jul-Jan FY22: Foreign debt of $12.02bn incurred

24 Feb, 2022

ISLAMABAD: Pakistan incurred foreign debt of $12.02 billion from multiple financing sources in the first seven months (July-January) of 2021-22 including $2.623 billion from foreign commercial banks (21.8 percent) against the total budgeted external loans of $14.088 billion for the entire fiscal year.

The Economic Affairs Division (EAD) on Wednesday released data, which shows that the government received $2.590 billion from multiple financing sources in January 2022.

The government has budgeted estimates of foreign assistance of $14.088 billion for the current financial year, including $13.871 billion loans and $217.44 million grants from multilateral and bilateral sources.

The external inflows during the corresponding period (July-January) of fiscal year 2020-21 were $6.661 billion including $2.730 billion from foreign commercial banks against the budgeted amount of $12.233 billion.

The total receipt of $12.02 billion constitutes $3.329 billion from multilateral, $196.17 million from bilateral, $2.623 billion from foreign commercial banks, and $2.041 billion from issuance of bonds and $3 billion dollars time deposit from Saudi Arabia.

The non-project aid was $9.511 billion and project aid was $1.679 billion.

Publically guaranteed loans were $832.53 million during the first seven months of 2021-22.

The government borrowed $2.623 billion from foreign commercial banks during the first seven months of the current fiscal year including $1.140 billion from Dubai Bank, $487.26 million from SCB (London), $61 million from Ajman Bank PJSC, $343.50 million from Suisse AG, UBL and ABL, and $591.25 million from Emirates NBD, which was borrowed in January 2022.

Among multilateral development partners, mainly the Asian Development Bank (ADB) provided $1.092 billion, the World Bank disbursed $1.001 billion, the AIIB $38.77 million, the IDB $66.24 million and IDB (S-Term) $1.086 billion.

China disbursed $100.80 million in the first seven months (July-January) of the current fiscal year, the USA $45.27 million, Korea $3.36 million, the UK $14.54 million, and Germany $12.25 million.

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