During the initial five months (July-November) of the fiscal year 2023-24, Pakistan borrowed $4.285 billion from various financing sources, marking a significant 16% decrease from the $5.114 billion borrowed in the same period of 2022-23, according to data from the Economic Affairs Division (EAD).
Notably, in November 2023, the country received $415.99 million, reflecting a substantial 51% decrease compared to the $846.76 million received in November 2022.
The government had budgeted $2.4 billion from the International Monetary Fund (IMF) for the fiscal year 2023-24 and received $1.2 billion as the first tranche of the $3 billion Stand-By Arrangement (SBA) in July 2023. However, the EAD data does not currently account for these transactions. Additionally, there is no mention of the $1 billion disbursed by the UAE. If the IMF and UAE inflows are considered, the total inflows would reach $6.485 billion during the first five months of the current fiscal year.
Of the $4.285 billion borrowed, $2 billion was received from Saudi Arabia under the category of a time deposit in July 2023. The data indicates that the government had budgeted estimates of $4.5 billion from foreign commercial banks for the fiscal year 2023-24; however, no funds were received under this category in the initial five months. Furthermore, the government had budgeted $1.5 billion for the issuance of bonds, but as of now, no bonds have been issued, and no funds have been received.
The government had set a budget of $17.619 billion from multiple financing sources for the fiscal year, including $17.384 billion in loans and $234.60 million in grants.
In the fiscal year 2022-23, the country borrowed $10.844 billion from various financing sources, including $2.206 billion from foreign commercial banks, against the budgeted foreign assistance of $22.817 billion. However, the $10.844 billion did not include the rollover of friendly countries’ deposits amounting to $6 billion, with $3 billion each from China and Saudi Arabia, and the refinancing of a Chinese loan of $1.3 billion.
During the first five months of the fiscal year 2023-24, the country received $407.49 million under the “Naya Pakistan Certificate” head.
Multilateral sources contributed $786.64 million, and bilateral sources provided $583 million during July-November 2023-24. Non-project aid amounted to $3.064 billion, including $2.464 billion for budgetary support, while project aid totaled $1.221 billion.
China disbursed $508.34 million under the head guarantee for the JF-17 B project funded by China National Aero-technology Import and Export Corporation (CATIC). China further disbursed $8.26 million in July-November against the government’s budget of $18.54 million for the fiscal year.
The Asian Development Bank (ADB) disbursed $120.47 million during the period under review, compared to the budgeted $2.086 billion for the fiscal year 2023-24.
Saudi Arabia disbursed $500 million against the budgeted $600 million under the head of oil facility during July-November 2023-24. The USA disbursed $23.35 million in the first five months against the budgeted $21.60 million for the fiscal year. Korea disbursed $10.98 million, and France disbursed $20.15 million during the current fiscal year.
The International Development Association (IDA) disbursed $402.45 million in July-November against the budgeted $1.489 billion for the current fiscal year, and the International Bank for Reconstruction and Development (IBRD) disbursed $88.19 million against the budgeted $840.36 million.
The Islamic Development Bank (Short-term) disbursed $100 million in July-November against the budgeted $500 million for the current fiscal year. The Asian Infrastructure Investment Bank (AIIB) disbursed $32.44 million, while the International Fund for Agricultural Development (IFAD) disbursed $15.29 million against the budgeted $42.68 million for the current fiscal year.
