July-August 2021-22: Pakistan incurs foreign debt of $2.376bn from multiple financing sources

ISLAMABAD: Pakistan incurred foreign debt of $2.376 billion from multiple financing sources in the first two months (July-August) of 2021-22 including $363.26 million from foreign commercial banks (15 percent) against the total budgeted external loans of $14.088 billion for the entire fiscal year.

The data of Ministry of Economic Affairs, released on Wednesday, shows that the government has budgeted estimates of foreign assistance of $14.088 billion for the current financial year including $13.871 billion loans and $217.44 million grants from multilateral and bilateral sources.

The external inflows during the corresponding period (July-August) of fiscal year 2020-21 were $2.248 billion including $149 million from foreign commercial banks against the budgeted amount of $12.233 billion.

The country received $780.88 million from multiple financing sources in August 2021 including $215 million from foreign commercial banks i.e. 27 percent.

The total receipt of $2.376 billion constitutes $879.40 million from multilateral, $91.90 million from bilateral, $363.26 million from foreign commercial banks, and $1.041 billion from issuance of bonds.

According to the official data, non-project aid remained $1.837 billion, while project aid was $539.10 million during the first two months of the current financial year.

The government borrowed $363.26 million from foreign commercial banks during the first two months of the current fiscal year including $215 million from Dubai Bank, $87.26 million from SCB (London), and $61 million from Ajman Bank PJSC.

Among the multilateral development partners, mainly the Asian Development Bank provided $280.73 million, the World Bank disbursed $142.37 million, the AIIB $37.77 million, andthe IDB (S-Term) $413.21 million.

However, from bilateral sources, China disbursed $73.35 million, the USA $14.77 million, Korea $1.59 million, and Germany $2 million.

Copyright Business Recorder, 2021