Fiscal year 2021-22: $4.7bn foreign debt incurred in first 5 months

ISLAMABAD: Pakistan incurred foreign debt of $4.7 billion from multiple financing sources in the first five months (July-November) of 2021-22 including $1.53 billion from foreign commercial banks (33 percent) against the total budgeted external loans of $14.088 billion for the entire fiscal year.

The Economic Affairs Division (EAD) data shows that the government has received $3.458 billion as non-project aid during the first five months of the current fiscal year including programme/budgetary support of $2.97 billion, short-term credit $468.53 million and TDPs $18.41 million.

Another $1.211 billion was received as project aid during the period under review. 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-November) of fiscal year 2020-21 were $4.499 billion including $1.62 billion from foreign commercial banks against the budgeted amount of $12.233 billion. The country received $802.37 million from multiple financing sources in November 2021 including $663.27 million from foreign commercial banks, i.e. 82 percent.

The total receipt of $4.7 billion constitutes $1.998 billion from multilateral, $128.74 million from bilateral, $1.53 billion from foreign commercial banks, and $1.041 billion from issuance of bonds. The government borrowed $1.53 billion from foreign commercial banks during the first five months of the current fiscal year including $720 million from Dubai Bank (including $505 million in November), $478.20 million from SCB (London) including ($158.27 million in November), $61 million from Ajman Bank PJSC, and $270.50 million from Suisse AG, UBL and ABL.

Among multilateral development partners, mainly the Asian Development Bank provided $620.29 million, the World Bank disbursed $854.70 million, the AIIB $37.77 million, and IDB (S-Term) $468.53 million. China did not disburse any amount in the third consecutive month i.e. November 2021; however, the country received $73.35 million in the first two months (July-August) of the current fiscal year, the USA $29.23 million, Korea $2.77 million, the UK $10.01 million, and Germany $3.52 million.

Copyright Business Recorder, 2021