Seven months of Fiscal Year 2017: $1.2 billion borrowed from commercial banks: EAD data

The country provisionally received $4.565 billion ie 57 percent of budgeted estimates of foreign assistance from multilateral and bilateral donors (July-January) in the current financial year against $4.28 billion during the same period of last year. The Economic Affairs Division (EAD) data revealed the government borrowed $300 million from Industrial and Commercial Bank of China Limited in the month of January, bringing the total borrowing from commercial banks to $1.2 billion in the first seven months of the current fiscal year.
Ministry of Finance (MoF) has finalised arrangements for $600 million commercial loan from two Chinese banks to be utilised for balance of payments and budgetary support and received $300 million in January. Yasir Ishaq Lashari Deputy Secretary EAD who deals with China told Business Recorder that they deal only in project loans and have no idea whether the remaining $300 million was received or not. Finance Ministry deals with this subject, Lashari added. This correspondent repeatedly tried to contact spokesperson of Finance Ministry for his version but he did not respond to queries till filling of this report.
The country borrowed $200 million from Noor Bank PJSC for budgetary support against the budgeted $100 million and $700 million from China Development Bank as non-project aid during the month of September. In addition, the government issued Sukuk of one billion dollars at a 6.5 percent rate of return during the period under review. The government has also borrowed $19 million from Asian Infrastructure Investment Bank (AIIB) in the current financial year which was not budgeted as per the EAD documents.
The country received $440.92 million in the month of January including $422.43 million loans and $18.49 million grants. The latest figures show that the country provisionally received $4.375 billion in loans and $190.61 million grant in the current fiscal year.
The government has budgeted foreign assistance of $7.998 billion for 2016-17 including grants and loans against $9.18 billion budgeted for 2015-16. The budgeted estimates include a significant amount of $2.005 billion from commercial banks for 2016-17.
Pakistan received $857.44 million from China in the first seven months of the current fiscal year including $9.48 million in the month of January, surpassing the budgeted $572.3 million for the current financial year. The country has received $561 million during the same period of last year.
Asian Development Bank (ADB) disbursed $709.75 million in the current financial year including $35.17 million in the month of January against the budgeted estimates of $1048.2 million. International Development Association (IDA) disbursed $131.8 million, IDB (S-Term) $212 million, US $51.78 million, International Bank for Reconstruction and Development (IBRD) $144.2 million, UNHCR $0.49 million, IDB $30.15 million and Japan $42.8 million, UK $131 million in the current financial year. The government received no assistance from EU, France, Korea, Norway, Oman, Saudi Arabia, UNDP and Organisation of the Petroleum Exporting Countries (Opec) during the period under review.