Pakistan borrowed $15.5 billion in first 10 months of FY22 – Journal

ISLAMABAD: Amid external account difficulties, Pakistan borrowed more than $15.5 billion in foreign loans in the first 10 months of the current fiscal year, about 70% more than borrowings from sources foreign countries during the same period last year.

In its monthly foreign economic aid report, the Ministry of Economic Affairs said it received approximately $13.03 billion in foreign aid during 10MFY2022.

The department’s monthly report on foreign inflows showed the government exceeded nearly 92.5% of the $14.09 billion foreign aid target set for the full fiscal year.

That does not include more than $1.5 billion in expensive foreign debt in Naya Pakistan Certificates from Overseas Pakistanis or the more than $1 billion guaranteed by the International Monetary Fund, which arrived in February. These two loans are reported separately by the State Bank of Pakistan.

As a result, the total external debt from external sources since 2018 has reached $51.03 billion. Total foreign loans jumped to $55.13 billion while just over $4.5 billion in IMF funds were also taken into account during the same period.

The data showed that the amount of foreign loans had steadily increased over the past three and a half years; from $10.59 billion in fiscal year 2018-19 to $10.662 billion in fiscal year 2019-20 and then to $14.28 billion in fiscal year 2020-21, followed of $13.03 billion in the first 10 months of the current fiscal year.

While the annual fiscal target for external debt in 2021-22 was set at $14.088 billion, the government borrowed $13.03 billion in the first 10 months alone.

There were four main sources of foreign inflows, including $4.05 billion from multilateral lenders, followed by $3 billion in time deposits from Saudi Arabia, about $2.623 billion in commercial loans from banks private sector and $2.041 billion in international bonds.

The largest among bilateral loans came from Saudi Arabia with $201 million, followed by China with $153 million and $64 million from the United States. Total loans from bilateral lenders amounted to $486 million in 10 months.

Posted in Dawn, May 24, 2022

Comments are closed.