Pakistan Secures $315.6 Million in External Loans in January 2024.
In a notable economic development, Pakistan has obtained external financing totaling $315.59 million in January 2024, as disclosed in the latest monthly report by the Economic Affairs Division (EAD).
This financing comprises $329.24 million in loans and $2.34 million in grants from various sources, contributing to a total external financing of $6.307 billion in the initial seven months of the fiscal year 2024.
Despite this significant achievement, the figure falls short of the annual budget estimates of $17.62 billion for FY24.
Delving into the loan components, the government secured a $203.63 million loan for non-project assistance. This includes $103.63 million allocated for program and budgetary support to facilitate the restructuring of Pakistan’s economy.
Furthermore, the remaining $100 million was acquired for IsDB (short-term) during the same period.
Data provided by the EAD highlights a strong trend in disbursements from bilateral and multilateral development partners, amounting to $227.95 million in January and $3.2 billion during the initial seven months of FY24.
These inflows have not only bolstered the economy but have also contributed to an enhancement in foreign exchange reserves.
The Ministry of Economic Affairs underscored the nation’s dependence on foreign commercial borrowing, particularly noting a significant $103.63 million obtained through the Naya Pakistan Certificate in January 2024.
Multilateral assistance played a pivotal role, with disbursements totaling nearly $166.95 million in January and $2.41 billion over the seven-month period.
Especially noteworthy, IsDB (short-term) led in January with $100 million, followed by contributions from the Asian Development Bank (ADB), the International Development Association-World Bank (IDA), the International Bank for Reconstruction and Development (IBRD), and the Asian Infrastructure Investment Bank (AIIB).
Cumulatively, IDA emerged as a major contributor to multilateral lending, with disbursements totaling $1.06 billion, followed by ADB with $620 million and AIIB with $292.96 million.
Bilateral development partners contributed $61 million in January and $794.61 million in FY24. Notable contributors during the month included Saudi Arabia with $58.88 million, Japan with $1.28 million, China with $7.92 million, the USA with $0.58 million, and Germany with $0.26 million.
Saudi Arabia, particularly through the Oil Facility, dominated cumulative disbursements with $595.18 million during the initial seven months of FY24.
This positive trend in external financing reflects the international community’s confidence in Pakistan’s economic trajectory, providing crucial support for ongoing developmental initiatives and fiscal stability.
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