ISLAMABAD: Pakistan obtained a total foreign loans of $ 3.2 billion during the first quarter (July-September) of this fiscal year against the disbursement of $ 2.9 billion during the same period of the 2020-21 fiscal year, the latest data revealed on Monday.
In the wake of the growing current account deficit which had already swelled to $ 3.4 billion in the first quarter of the current fiscal year, the demand for foreign loans could increase further in order to avoid the depletion of foreign exchange reserves. Pakistan planned to generate $ 14 billion in foreign loans in the current fiscal year.
Despite the government’s inability to revive the IMF’s $ 6 billion Extended Financing Facility (EFF) program, Pakistani authorities managed $ 1.6 billion (exactly $ 1.595 billion) from creditors multilateral organizations such as the World Bank’s IDA, which provided a loan worth $ 531.25 million in the first quarter of this year. fiscal year.
The government obtained $ 1.485 billion from multilateral creditors in the same first quarter of the last fiscal year 2020-2021. In the absence of the IMF health certificate, Islamabad benefited from $ 111.51 million from the World Bank IBRD facility during the first quarter of the current fiscal year.
The Islamic Development Bank (IDB) disbursed a short-term loan worth $ 446.31 million for the financing of raw materials and petroleum products. The Asian Development Bank (ADB) disbursed $ 459.95 million during the first quarter of the current fiscal year.
In the last fiscal year 2020-21, Pakistan obtained $ 1 billion in security deposits from China in order to repay the same amount to Saudi Arabia. However, during the current fiscal year, the government has generated significant inflows of dollars from multilateral creditors, international bond issuance and, third, commercial banks respectively during the first quarter of the current fiscal year.
The government recouped $ 1.041 billion from the issuance of international bonds in the first quarter of this fiscal year, which helped it generate $ 3.2 billion in loan inflows to $ 3.2 billion.
According to official data from the Economic Affairs Division (EAD), bilateral creditors disbursed $ 110.41 million in the first quarter of this fiscal year, with China providing $ 73.35 million, France 0.53 million dollars, Germany $ 2.26 million, Italy zero, Japan $ 1.02 million, Korea $ 1.59 million, Kuwait zero, Oman $ 0.13 million, Arabia Saudi $ 1.03 million, UK $ 3.15 million and US $ 27.27 million. The government raised $ 105 million from bilateral creditors in the first quarter of the last fiscal year 2020-2021.
Among the multilateral creditors, the Asian Infrastructure Investment Bank (AIIB) disbursed $ 37.77 million, the EIB and the EU for nil, the IBRD of the WB $ 111.51 million, the ‘WB IDA $ 531.25 million, IDB $ 1.61 million and short-term IDB $ 446.31 million, IFAD $ 6.08 million, multi-donor Trust Fund (MDTF ) $ 0.83 million and nil from DFID.
The government obtained $ 61 million from Ajman Bank PJSC, $ 215 million from Dubai Bank and 181.54 million from SCB (London) in the first quarter of the current fiscal year. In total, the government raised a total of foreign loans and grants to the tune of $ 3.2 billion in the first quarter of the current fiscal year. It had planned to raise foreign loans of $ 14.088 billion during the entire 2021-2022 fiscal year in order to meet all of its owed obligations.