The country procured $1.022 billion commercial loans from foreign banks in the first four months (July-October) of the current fiscal year 2017-18, thus surpassing the budgeted estimates of $1 billion for the entire year. Total external assistance for July-October 2017 amounted to $2.452 billion (including $1.022 billion commercial loans), revealed Economic Affairs Division (EAD).
The government has signed short-term commercial loan agreements of $1.172 billion during the first four months (July-October) of the current fiscal year 2017-18 with different foreign banks of which $1.022 billion have materialized so far.
The government procured $500 million commercial loans from Industrial and Commercial Bank of China Limited (ICBC) in October. Further $50 million were procured from the Credit Suisse-led consortium of banks, bringing the total to $255 million from the consortium. The consortium consists of Credit Suisse AG, United Bank Limited and Allied Bank Limited. The country procured $267 million commercial loans from Citibank during the period under review for budgetary support.
Sources revealed that the government is in negotiations with some other foreign banks and expected to sign more agreements in coming month to procure more commercial loans for budgetary support. The government budgeted $2.05 billion for 2016-17 but by the end of the year had borrowed $4.367 billion from foreign commercial banks.
The government has budgeted foreign assistance of $8.094 billion for 2017-18 including $7.692 billion loans and $401.78 million grants. The country received a total of $853.53 million of foreign assistance in October, revealed EAD. China disbursed $417.21 million in the current fiscal year (July-October) 2017-18 against the budgeted $1.595 billion for the entire year. China released $100.1 million in October including $56.3 million for Sukkur-Multan Motorway project, $22.4 for Havelian-Thakot under the China Pakistan Economic Corridor (CPEC) framework and $21.32 million for Orange Line project Lahore.
Asian Development Bank (ADB) disbursed $160.54 million in the current fiscal year 2017-18 so far including $43.23 million in October against the budgeted estimates of $1.221 billion, International Bank for Reconstruction and Development (IBRD) $69.56 million against the estimated $60.65 million, IDB (S-Term) $455.36 million against the estimated $1.550 billion, Asian Infrastructure Investment Bank (AIIB) $7.86 million, International Development Association (IDA) $79.05 million against $975.27 million, Islamic Development Bank (IDB) $53.84 million, Japan $33.17 million, Saudi Arabia $22.50 million, UK released $81.59 million of grant, and USA released $22 million in the current fiscal year 2017-18 against the budgeted estimates of $117.56 million. The government has received no assistance from EU, Italy, Korea, Norway, and UNDP during the first four months of the current fiscal year 2017-18.