ISLAMABAD: The country borrowed $3.847 billion from multiple financing sources during the first four months (July-October) of the current fiscal year 2023-24 compared to $4.255 billion borrowed during the same period of 2022-23, revealed the Economic Affairs Division (EAD) data.
Data further shows that the country received $318.10 million in October 2023 compared to $2.017 billion in October 2022.
The government has budgeted $2.4 billion from the International Monetary Fund (IMF) for the current fiscal year 2023-24 and received $1.2 billion as the first tranche of the $3 billion Stand-By Arrangement (SBA) in July 2023, however, the EAD data does not reflect it. Further, there is no mention of $1 billion disbursed by the UAE.
Debt piling up: Borrowing reliance surging to finance twin deficits: World Bank
If the IMF and UAE inflows are added, the total inflows would reach $6.047 billion during the first four months of the current fiscal year.
The $3.847 billion included $2 billion received from Saudi Arabia under the head of time deposit during July 2023. The data further shows that the government had budgeted estimates of $4.5 billion from the foreign commercial banks for the current fiscal year 2023-24, however, no money was received under this head during the first four months of the current fiscal year.
The government had budgeted $1.5 billion from the issuance of bonds, however, the country is yet to issue the bonds, hence no amount is received so far.
The government had budgeted $17.619 billion from multiple financing sources for the current fiscal year including $17.384 billion loans and $234.60 million grants.
The country borrowed $10.844 billion from multiple financing sources including $2.206 billion from foreign commercial banks during the fiscal year 2022-23 against the budgeted foreign assistance of $22.817 billion.
However, the $10.844 billion did not include the rollover of friendly countries’ deposits amounting to $6 billion (i.e. $3 billion each from China and Saudi Arabia), and the re-financing of Chinese loan of $1.3 billion.
The country received $306.26 million under the head of “Naya Pakistan Certificate” during the first four months of the current fiscal year 2023-24.
The country received $597.49 million from multilaterals and $435.61 million from bilateral during July-October 2023-24. The non-project aid was $2.855 billion including $2.355 billion for budgetary support and project aid was $992.55 million.
China disbursed $508.34 million under the head guaranteed for the JF-17 B project funded by China National Aero-technology Import and Export Corporation (CATIC).
China further disbursed 0.35 million in July-October against the government budgeted of $18.54 million for the current fiscal year.
The Asian Development Bank (ADB) disbursed $87.50 million during the period under review compared to the budgeted $2.086 billion for the fiscal year 2023-24.
Saudi Arabia disbursed $400 million against the budgeted $600 million under the head of oil facility during July-October 2023-24.
The USA disbursed $15.10 million in the first four months against the budgeted $21.60 million for the fiscal year. Korea disbursed $5.39 million and France $7.49 million during the current fiscal year.
The IDA disbursed $303.43 million in July-October against the budgeted $1.489 billion for the current fiscal year and IBRD $67.28 million against the budgeted $840.36 million.
IsDB (Short-term) disbursed $100 million in July-October against the budgeted $500 million for the current fiscal year and AIIB disbursed $27.86 million, while IFAD disbursed $11.41 million against the budgeted $42.68 million for the current fiscal year.
Copyright Business Recorder, 2023