ISLAMABAD: The government has borrowed $7.407 billion from multiple financing sources, including $900 million from foreign commercial banks, during the first eight months (July-February) of 2022-23 compared to $12.178 billion borrowed during the same period of last fiscal year.

The Economic Affairs Division (EAD) data shows that the country has not received foreign assistance from China for the fifth consecutive month in February, and $54.93 million was received during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year.

The country borrowed $900 million from foreign commercial banks during the first eight months of the current fiscal year 2022-23 including $700 million in February. However, the country had received $2.623 billion from foreign commercial banks during the same period last year, shows the Economic Affairs Division data.

Jul-Jan: $6.134bn borrowed from multiple sources

Further, contrary to the past practices, the EAD data does not mention from which commercial banks the $900 million was borrowed.

The country received $1.166 billion from the International Monetary Fund (IMF) during the first eight months (July-February) of 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 $6.241 billion during the first eight months of the current fiscal year compared to $12.178 billion during the same period of the last fiscal year, indicating the slowdown in inflows.

The government procured $1.271 billion in external loans in February 2023. The country received $538.42 million under the head of the “Naya Pakistan Certificate” during the first eight months of the current fiscal year including $72.07 million in February 2023.

The government has budgeted foreign assistance of $22.817 billion for the current fiscal year including $7.5 billion foreign commercial banks.

The country received $3.852 billion from multilaterals, $949.66 million from bilateral and $1.166 billion from IMF during July-February 2022-23. The non-project aid was $6.084 billion including $5.124 billion for budgetary support and project aid was $1.322 billion.

The Asian Development Bank (ADB) disbursed $1.929 billion during the period under review compared to the budgeted $3.202 billion for the entire fiscal year. ADB disbursed $12.85 million in February 2023.

China disbursed $54.93 million in during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year, however, no money was received in October, November, December, January and February. Saudi Arabia disbursed $782.28 million against the budgeted $800 million. The USA disbursed $20.83 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $19.79 million and France $27.36 million during the first eight months of the current fiscal year.

The IDA $1.019 billion against the budgeted $1.4 billion during the first eight months including $338.63 including in February, IBRD $135.02 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million for the current financial year. The IsDB (Short-term) disbursed $161 million in the current fiscal year. The AIIB disbursed $539.02 million in the current fiscal year so far.

Copyright Business Recorder, 2023