Far behind $17.619bn annual target: $9.811bn borrowed from multiple financing sources in FY24

  • If IMF and UAE inflows are added, total inflows would reach $13.804 billion during fiscal year 2023-24 against target of $17.619 billion
Updated 27 Jul, 2024

ISLAMABAD: The country borrowed $9.811 billion from multiple financing sources during the fiscal year 2023-24, far behind the annual target of $17.619 billion.

If the International Monetary Fund (IMF) and the UAE inflows are added, the total inflows would reach $13.804 billion during the fiscal year 2023-24 against the target of $17.619 billion for the entire fiscal year of 2023-24. The country had borrowed $10.844 billion during the fiscal year 2022-23.

The data further shows that the country received $2.257 billion in June 2024 compared to $2.231 million in June 2023, including $999.04 million from foreign commercial banks.

Govt to borrow Rs3.97trn in Q1 FY24

The government had budgeted $2.4 billion from the IMF for the fiscal year 2023-24 and received $3 billion under the Stand-By Arrangement (SBA); however, the EAD data does not reflect it.

Further, there is no mention of $1 billion disbursed by the UAE. If the IMF and the UAE inflows are added, the total inflows would reach $13.804547 billion during the fiscal year 2023-24. The $9.811 billion included $2 billion received from Saudi Arabia under the head of time deposit.

The data further showed that the government had budgeted estimates of $4.5 billion from the foreign commercial banks for the fiscal year 2023-24; however, the country received only $999.04 million in fiscal year 2023-24 from the China Development Bank.

The government had budgeted $1.5 billion from the issuance of bonds; however, as the country did not issue the bonds, hence no amount was received during 2023-24.

The government had budgeted $17.619 billion from multiple financing sources for the fiscal year 2023-24 including $17.384 billion in loans and $234.60 million grants.

The country received $1.104 billion under the head of the “Naya Pakistan Certificate” during the fiscal year 2023-24.

The country received $4.279 billion from multilaterals and $919.43 million from bilateral during 2023-24. The non-project aid was $6.777 billion including $5.583 billion for budgetary support and project aid was $3.033 billion.

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 69.14 million against the government budgeted of $18.54 million for the fiscal year 2023-24.

The Asian Development Bank (ADB) disbursed $1.327 billion during the period under review compared to the budgeted $2.086 billion for the fiscal year 2023-24.

Saudi Arabia disbursed $595.18 million against the budgeted $600 million under the head of oil facility during 2023-24. Saudi Arabia disbursed another $66.29 million in fiscal year 2023-24.

The USA disbursed $40.18 million against the budgeted $21.60 million for the fiscal year 2023-24. Korea disbursed $35.64 million and France $49.57 million during the fiscal year 2023-24.

The IDA disbursed $1.922 million against the budgeted $1.489 billion for the fiscal year 2023-24 and IBRD $295.87 million against the budgeted $840.36 million. The IsDB (Short-term) disbursed $250 million against the budgeted $500 million for the fiscal year 2023-24 and AIIB disbursed $344.99 million, while IFAD disbursed $42.43 million against the budgeted $42.68 million for the fiscal year 2023-24.

Copyright Business Recorder, 2024

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