BAFL 48.00 Increased By ▲ 1.50 (3.23%)
BIPL 21.65 Increased By ▲ 0.50 (2.36%)
BOP 5.65 Increased By ▲ 0.12 (2.17%)
CNERGY 5.11 Increased By ▲ 0.21 (4.29%)
DFML 19.53 Increased By ▲ 0.71 (3.77%)
DGKC 81.14 Increased By ▲ 1.14 (1.43%)
FABL 31.70 Increased By ▲ 0.85 (2.76%)
FCCL 20.65 Increased By ▲ 0.26 (1.28%)
FFL 9.82 Increased By ▲ 0.26 (2.72%)
GGL 14.00 Increased By ▲ 0.03 (0.21%)
HBL 122.50 Increased By ▲ 4.55 (3.86%)
HUBC 125.00 Increased By ▲ 1.20 (0.97%)
HUMNL 8.39 Increased By ▲ 0.44 (5.53%)
KEL 3.70 Increased By ▲ 0.19 (5.41%)
LOTCHEM 28.79 Increased By ▲ 0.24 (0.84%)
MLCF 42.50 Increased By ▲ 0.40 (0.95%)
OGDC 122.34 Increased By ▲ 1.33 (1.1%)
PAEL 19.52 Increased By ▲ 0.68 (3.61%)
PIBTL 5.85 Increased By ▲ 0.15 (2.63%)
PIOC 117.75 Increased By ▲ 4.04 (3.55%)
PPL 110.80 Increased By ▲ 2.45 (2.26%)
PRL 29.58 Increased By ▲ 1.76 (6.33%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
SNGP 70.50 Increased By ▲ 1.10 (1.59%)
SSGC 13.90 Increased By ▲ 0.65 (4.91%)
TELE 9.10 Increased By ▲ 0.31 (3.53%)
TPLP 14.49 Increased By ▲ 0.84 (6.15%)
TRG 95.30 Increased By ▲ 3.36 (3.65%)
UNITY 27.65 Increased By ▲ 0.99 (3.71%)
WTL 1.62 Increased By ▲ 0.05 (3.18%)
BR100 6,643 Increased By 99.6 (1.52%)
BR30 23,748 Increased By 537.7 (2.32%)
KSE100 64,617 Increased By 699.5 (1.09%)
KSE30 21,566 Increased By 214.7 (1.01%)

In budget 2023-24, Pakistan envisages over $19bn in external financing

  • To meet budgeted targets, govt says it will seek $2.4bn from IMF, another $4.5bn from commercial banks
Published June 9, 2023

Cash-strapped Pakistan has budgeted a whopping Rs5.51 trillion or approximately $19 billion in fiscal year 2023-24 through loans and enhancement of deposits from external sources including the International Monetary Fund (IMF) and commercial banks, documents by the Ministry of Finance showed on Friday.

As per the finance ministry’s ‘Explanatory Memorandum on Federal Receipts’, available with Business Recorder, the government estimated external loans at Rs5,510,580 million, which translates to roughly $19.002 billion in FY23-24 at an exchange rate of Rs290 to the US dollar.

The amount is over 180% higher than the revised estimate for the outgoing fiscal year that stood at Rs1.951 trillion, the document shows, and comes at a time of rising interest rates in the global financial markets.

Out of the $19 billion, as per the budget document, the government will look to raise Rs145 billion or $500 million in short-term loans from Islamic Development Bank (IDB).

The country will also look to enhance its time deposit from Saudi Arabia to Rs870 billion or $3 billion.

Meanwhile, the South Asian country has also budgeted Rs29.58 billion or $102 million for ECO oil facility.

Pakistan is also budgeting new deposits of $3 billion from Saudi Arabia and United Arab Emirates, i.e. $2 billion and $1 billion each, respectively. This is likely to be the deposit commitments announced earlier by Finance Minister Ishaq Dar.

As per the budget documents, the South Asian country also plans to raise a fresh $1.5 billion or Rs435 billion through Euro bonds and international Sukuk in FY23-24.

The documents showed that the government plans to seek loans worth Rs1.305 trillion or $4.5 billion from commercial banks in the coming fiscal year.

Moreover, the Pakistani authorities also expect to enhance its Safe China Deposit from Rs596 billion to Rs1.16 trillion or $4 billion in the coming year.

Lastly, the country is also envisaging Rs696 billion or $2.4 billion in IMF loan for budgetary support, showed the document.

Facing a balance of payment crisis, Pakistan is passing through its worst economic turmoil in history.

Its programme with the IMF has been stalled at the ninth review since November last year.

The country is reeling from an economic crisis with inflation running at a record 37.97% in May and foreign exchange reserves at a precarious position. The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, and its central bank has also raised policy interest rates to a record 21%.

The IMF has conducted just eight of the 11 reviews that were to take place during the EFF. The last one took place in August last year.

Author Image

Ali Ahmed

The writer is a Senior Sub Editor at Business Recorder (Digital)

Bilal Memon

Bilal Memon is the Head of Digital Content at Business Recorder. His Twitter handle is @bilalahmadmemon


Comments are closed.

Tulukan Mairandi Jun 09, 2023 10:44pm
From the table its clear that everyone is recalling their loans and deposits and not giving anything new
thumb_up Recommended (0)
KU Jun 10, 2023 12:02am
Please someone tell us it's a joke or it's a bad dream and we will wake up fine in the morning! We have less than $4 billion in coffers and a budget that requires over $10 billion to revive the country which is on death bed, and there are no agreements on loan disbursement from IMF or any other organization, yet the ministers in NA were all smiles as if they have won a battle. As one BR reader commented a few days ago, it seems every NA member has joined the ''Janaza-e-Pakistan'' party and they are oblivious to the trouble the country is faced with.
thumb_up Recommended (0)
Ex Pakistan patriot Jun 10, 2023 11:46am
This country is dead there is no hope for this country only the tax evading rich and the corrupt embezzling public funds can live in this shithole the common people are only born to live and die like insects in this filthy country. It’s so shameful that the people of this country are dying of hunger and facing horrible inflation but the already high military budget has increased even more this year and already half the budget is spend on repaying debt but the country will be put in even more debt to finance this ridiculous deluded budget with no benefit for the general population. This just shows the priorities of the people running this country they don’t give a single care about the people all they care is their expenses of living in huge palaces in gated societies with free utility bills and multi million dollar cars is full filled from the people’s taxes while the general public who paid for those taxes can go to hell and live like dogs. I feel sorry for us being born here.
thumb_up Recommended (0)
Ex Pakistan patriot Jun 10, 2023 11:49am
@KU, It’s a dead country bro just think of getting out of here the people running this country don’t give a damn about the general public all they care is to live on huge palaces in gated societies with free utility bills and multi million dollar cars on our tax money they will never spend our tax on the development of us the people. This country was made by the corrupt elite, is for the corrupt elite and will forever be by the corrupt elite so it’s better to stop identifying yourself with the identity of this filthy country and recognize urself as a global human and go live in any other country than this crap hole.
thumb_up Recommended (0)

In budget 2023-24, Pakistan envisages over $19bn in external financing

Intra-day update: rupee strengthens against US dollar

Intra-day update: KSE-100 crosses 64,500 after over 600-point gain

‘Illegal’ LCs, forex market speculation: MoF set to share list of banks with SIFC today

New FAB ED: govt initiates appointment process

FWBL sell-off: Minister briefed about status of accounts

Illegal foreigners seriously affecting Pakistan’s security, economy: COAS

Digitising budget process: Shamshad chairs IMF mission meeting

Loss-making Discos: FD opposes PD’s proposal

Power sector: Nepra backs transition from Libor to ‘SOFR’

‘Delayed’ CASA-1000 project: World Bank reluctant to arrange funds