The country provisionally received $2.705 billion foreign assistance in the first seven months (July-January) of current financial year 2018-19 against $6.882 billion during the same period of last year (2017-18), showing a reduction of about 60 percent. The assistance received as tabulated by the Economic Affairs Division (EAD) does not include the total 3 billion dollars loan the country received from Saudi Arabia and one billion dollars from United Arab Emirates for this year with another 2 billion dollars expected in the current fiscal year.
The EAD data exclusively available with Business Recorder shows that the Pakistan Tehreek-e-Insaf (PTI)-led government did not borrow from foreign commercial banks in January, 2018-19. However, the country borrowed a total of $$499.44 million from foreign commercial banks in the current fiscal year compared to $1.777 billion during the same period of last year.
The PML-N government had budgeted foreign assistance of $9.69 billion for 2018-19 including $394.34 million grant and $9.297 billion loans as shown in the EAD data. The country received $11.486 billion against the budgeted assistance of $8.094 billion for 2017-18 including $3.716 billion from foreign commercial banks.
According to the latest figures, the country provisionally received $381.48 million including $368.33 million loans and $13.15 million grants in January. Asian Development Bank (ADB) disbursed $17.80 million in January bringing the total disbursement to $356.86 million in the current fiscal year against the budgeted estimates of $1.38 billion for the entire year.
The country received $288.13 million from China in January, bringing the total to $1.123 billion in the current fiscal year against the budgeted estimate of $840.99 million. This amount includes $203.88 million for the Orange Line Metro Project, $604.45 million for the Sukkur-Multan section of China-Pakistan Economic Corridor, $202.88 million for Havelian-Thakot road (CPEC), $102.58 million for Pakistan Remote Sensing Satellite and $2.8 million for construction of cross border optical fiber cable system (CPEC).
USA disbursed $48.14 million, International Development Association (IDA) $128.13 million, IDB (S-Term) $297.37 million, UK 74.07 million, France $41.83 million, Japan $36.14 million and Germany $13.32 million in the current fiscal year so far. The previous government had budgeted $2 billion from foreign commercial banks for 2018-19. The country received $25 million from the consortium-led by Suisse AG, UBL and ABL in December, besides $50 million received in November from the consortium.
Pakistan borrowed $159.5 million in October from Dubai Bank. According to the EAD data the loan agreement of $160 million was signed on September 26, 2018 i.e. by the PTI government of which $159.5 million has been received so far. Noor Bank disbursed $20 million in July out of the total committed amount of $130 million. The loan agreement was signed on June 21, 2018 i.e. during the caretaker government.
The Suisse AG also disbursed $50 million out of its total commitment of $750 million in July. This loan agreement was signed during the PML-N government on May 9, 2018. However, no commercial loans were taken during August 2018. The country received $170 million in September from consortium-led by Suisse AG, UBL and ABL. According to the EAD data the loan agreement of $200 million was signed on September 24, 2018 i.e. by the PTI government, but the government has crossed the figure and received $245 million so far.