Jul-Mar 2022-23: Govt borrowing declines 39.18pc to $7.76bn YoY

ISLAMABAD: The government has borrowed $7.764 billion from multiple financing sources, including $900 million from foreign commercial banks, during the first nine months (July-March) of 2022-23 compared to $12.767 billion borrowed during the same period of the previous fiscal year, showing a decline of 39.18 percent.

The Economic Affairs Division data shows the country has not received foreign assistance from China for the sixth consecutive month in March, and $54.93 million was received during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year.

The country borrowed $900 million from foreign commercial banks during the first nine months of the current fiscal year 2022-23 including $700 million in February.

External sources: Jul-Nov govt borrowing rises to $5.114bn from $4.699bn YoY

However, no loans were borrowed from foreign commercial banks during March 2023. The country had received $2.623 billion from foreign commercial banks during the same period of last year, shows the Economic Affairs Division data.

The country received $1.166 billion from the International Monetary Fund (IMF) during the first nine months (July-March) of 2022-23.

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 $6.598 during the first nine months of current fiscal year compared to $12.767 billion during the same period of last fiscal year, indicating the slowdown in inflows.

The government procured $358.71 billion external loans in March 2023. The country received $612.30 million under the head of “Naya Pakistan Certificate” during the first nine months of current fiscal year including $73.88 million in March 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 $4.021 billion from multilaterals, $1.064 million from bilateral and $1.166 billion from IMF during July-March 2022-23. The non-project aid was $6.331 billion including $5.272 billion for budgetary support and project aid was $1.432 billion.

Asian Development Bank (ADB) disbursed $1.940 billion during the period under review compared to the budgeted $3.202 billion for the entire fiscal year. ADB disbursed $12.46 million in March 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, January, February and March.

Saudi Arabia disbursed $782.28 million against the budgeted $800 million under the head of oil facility during the first eight months, however, no money was disbursed in March.

The USA disbursed $24.27 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $21.31 million and France $29.87 million during the first nine months of the current fiscal year.

The IDA $1.102 billion against the budgeted $1.4 billion during the first nine months including $83.87 including in March, IBRD $146.99 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. IsDB (Short-term) disbursed $161 million in the current fiscal year. AIIB disbursed $546.75 million in the current fiscal year so far, while ECO (Trade Bank) disbursed $54.12 million.

Copyright Business Recorder, 2023