ISLAMABAD: The government has borrowed $6.134 billion from multiple financing sources including $1.166 billion from the International Monetary Fund (IMF) during the first seven months (July-January) of 2022-23 compared to $12.022 billion borrowed during the same period of last fiscal year.
The Economic Affairs Division (EAD) data shows that the country has not received foreign assistance from China for the fourth consecutive month in January, and $54.93 million was received during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year.
Further, the borrowing from commercial banks also slowed down and no money was received in January from this source.
Outsourcing govt borrowing on the cards
The country borrowed $200 million from foreign commercial banks during the first seven months of the current fiscal year 2022-23 and that was borrowed in October 2022. However, the country had received $2.623 billion from foreign commercial banks during the same period of last year, shows the EAD data.
Further contrary to past practices, the EAD data does not mention from which commercial bank the $200 million was borrowed in October 2022.
Further contrary to past practices, the EAD has also listed the loans taken from the IMF. If the IMF loan is excluded then the country received $4.9689 during the first seven months of the current fiscal year compared to $12.022 billion during the same period of last fiscal year, indicating the slowdown in inflows.
The government procured $294.54 million external loans in January 2023. The country received $466.35 million under the head of “Naya Pakistan Certificate” during the first seven months of the current fiscal year including $71.55 million in January 2023.
The government has budgeted foreign assistance of $22.817 billion for the current fiscal year including $7.5 billion foreign commercial banks.
The country received $3.463 billion from multilaterals and $838.67 million from bilateral and $1.166 billion from IMF during July-January 2022-23.
Jul-Dec: govt has borrowed $5.595bn
The non-project aid was $5.145 billion including $4.277 billion for budgetary support and project aid was $989.26 million.
The Asian Development Bank (ADB) disbursed $1.916 billion during the period under review compared to the budgeted $3.202 billion for the entire fiscal year. The ADB disbursed $11.41 million in January 2023.
China disbursed $54.93 million in during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year, however, no money was received in October, November, December, and January. Saudi Arabia disbursed $690.11 million against the budgeted $800 million.
The USA disbursed $18.71 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $19.79 million and France $21.82 million during the first seven months of the current fiscal year.
The IDA $684.16 million against the budgeted $1.4 billion, IBRD $96.55 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million for the current financial year. The IsDB (short-term) disbursed $161 million in the current fiscal year. The AIIB disbursed $538.46 million in the current fiscal year so far.
Copyright Business Recorder, 2023
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