Around $17bn foreign debt incurred in FY22

ISLAMABAD: Pakistan incurred foreign debt of around $17 billion from multiple financing sources in the fiscal year 2021-22, which includes $4.9 billion from foreign commercial banks (29%) against the total budgeted external loans of $14.088 billion for the fiscal year 2021-22.

This does not include the $1 billion received from the International Monetary Fund (IMF) during this period.

Data from the Economic Affairs Division (EAD) shows that the country received $3.434 billion from multiple financing sources in June 2022 including $2.240 billion borrowed foreign commercial banks.

The government had budgeted estimates of foreign assistance of $14.088 billion for the financial year 202122, including $13.871 billion loans and $217.44 million grants from multilateral and bilateral sources.

The external inflows during the corresponding fiscal year 2020-21 were $14.282 billion including $4.721 billion from foreign commercial banks against the budgeted amount of $12.233 billion.

The total receipt of $16.974 billion constitutes $4.828 billion from multilateral, $708.08 million from bilateral, $4.863 billion from foreign commercial banks, and $2.041 billion from issuance of bonds and $3 billion time deposit from Saudi Arabia.

Pakistan’s financing needs fully met for this year, says SBP chief

The non-project aid was $13.220 billion including $11.861 billion for budgetary support and project aid was $2.221 billion.

Guaranteed loans were $1.532 billion during the fiscal year 2021-22. The government borrowed $4.863 billion from foreign commercial banks during the fiscal year 2021-22 including $1.140 billion from Dubai Bank, $487.26 million from SCB (London), $61 million from Ajman Bank PJSC, $ 343.50 million from Suisse AG, UBL and ABL, $591.25 million from Emirates NBD, $52.32 million from ECO.T/Bank and $2.240 billion from China (received in June).

Among multilateral development partners, mainly the Asian Development Bank provided $1.625 billion against the projected $1.479 billion, the World Bank disbursed $1.579 billion against the budgeted $2.366 billion, the AIIB $41.62 million, IDB $78.98 million and IDB (S-Term) $1.327 billion.

China disbursed $162.60 million in the fiscal year 2021-22 against the budgeted $69.66 million, USA $69.82 million, Korea $5.51 million, UK $16.01 million, Germany $16.68 million, and Saudi Arabia $401.09 million including $100 million in June for imports of oil products.

Copyright Business Recorder, 2022