July-May of FY 2023-24: $7.547bn borrowed from multiple financing sources

ISLAMABAD: The country borrowed $7.547 billion from multiple financing sources during the first 11 months (July-May) of the fiscal year 2023-24 compared to $8.613 billion borrowed during the same period of 2022-23, revealed the Economic Affairs Division (EAD)’s data.

If the International Monetary Fund (IMF) and the UAE inflows are added, the total inflows would reach $11.547 billion during the first eleven months of the fiscal year 2023-24 against the target of $17.619 billion for the entire fiscal year of 2023-24.

The data further shows that the country received $402.97 million in May 2024 compared to $491.69 million in May 2023.

Country borrows $7.142bn during Jul-Apr

The government had budgeted $ 2.4 billion from the IMF for the fiscal year 2023-24 and received $3 billion under the Stand-By Arrangement (SBA); however, the EAD data does not reflect it.

Further, there is no mention of $1 billion disbursed by the UAE. If the IMF and the UAE inflows are added, the total inflows would reach $11.547 billion during the first 11months of the fiscal year 2023-24. The $7.547 billion included $2 billion received from Saudi Arabia under the head of time deposit.

The data further showed that the government had budgeted estimates of $4.5 billion from the foreign commercial banks for the fiscal year 2023-24; however, no money was received under this head during the first eleven months of the fiscal year 2023-24. The government had budgeted $1.5 billion from the issuance of bonds; however, as the country did not issue the bonds, hence no amount was received during the first eleven months of 2023-24.

The government had budgeted $17.619 billion from multiple financing sources for the fiscal year 2023-24 including $17.384 billion loans and $234.60 million grants.

The country received $1.015 billion under the head of the “Naya Pakistan Certificate” during the first 11 months of the fiscal year 2023-24.

The country received $3.134 billion from multilaterals and $888.93 million from bilateral during July-May 2023-24. The non-project aid was $4.981 billion including $3.837 billion for budgetary support and project aid was $2.565 billion.

China disbursed $508.34 million under the head guaranteed for the JF-17 B project funded by China National Aero-technology Import and Export Corporation (CATIC). China further disbursed 68.23 million in July-May against the government budgeted of $18.54 million for the fiscal year 2023-24.

The Asian Development Bank (ADB) disbursed $766.42 million during the period under review compared to the budgeted $2.086 billion for the fiscal year 2023-24.

Saudi Arabia disbursed $595.18 million against the budgeted $600 million under the head of oil facility during July-May 2023-24. Saudi Arabia disbursed another $64.03 million in the first eleven months of fiscal year 2023-24. The USA disbursed $38.53 million in the first 11 months against the budgeted $21.60 million for the fiscal year 2023-24. Korea disbursed $26.61 million and France $45.17 million during the fiscal year 2023-24.

The IDA disbursed $1.518 million in July-May against the budgeted $1.489 billion for the fiscal year 2023-24 and IBRD $195.28 million against the budgeted $840.36 million. The IsDB (Short-term) disbursed $200 million in July-May against the budgeted $500 million for the fiscal year 2023-24 and AIIB disbursed $315.09 million, while IFAD disbursed $42.43 million against the budgeted $42.68 million for the fiscal year 2023-24.

Copyright Business Recorder, 2024