$12.178 billion in external debt contracted in the first 8 months of FY22 – Business & Finance

ISLAMABAD: Pakistan incurred $12.178 billion in external debt from multiple funding sources in the first eight months (July-February) of 2021-22, including $2.623 billion from foreign commercial banks (21.5 %) against total budgeted external lending of $14.088 billion for the entire fiscal year.

The Economic Affairs Division (EAD) released data on Friday which shows that the government received $154.47 million from multiple funding sources in February 2022. The government has planned foreign aid of $14.088 billion for the current fiscal year, including $13.871 billion in loans and $217.44. million in grants from multilateral and bilateral sources.

External inflows during the corresponding period (July-January) of FY 2020-21 were $7.208 billion, including $3.11 billion from foreign commercial banks against the budgeted amount of $12.233 billion.

The total receipt of $12.178 billion represents $3.477 billion from multilateral, $203.68 million from bilateral, $2.623 billion from foreign commercial banks and $2.041 billion from bond issuance and $3 billion from time deposit dollars from Saudi Arabia. Non-project aid was 9.916 billion dollars including 8.411 billion dollars for budget support and project aid was 1.730 billion dollars. Loans secured amounted to $531.01 million in the first eight months of 2021-22. The government borrowed $2.623 billion from foreign commercial banks in the first eight months of the current fiscal year, including $1.140 billion from Dubai Bank, $487.26 million from SCB (London), $61 million from Ajman Bank PJSC, $343.50 million from Suisse AG, UBL and ABL. and $591.25 million from Emirates NBD.

Among the multilateral development partners, mainly Asian Development Bank provided $1.100 billion, World Bank disbursed $1.034 billion, AIIB $38.77 million, IDB $66.67 million and IDB (S-Term) $1.189 billion.

China disbursed $100.80 million in the first seven months (July-January) of the current fiscal year, but no amount was disbursed in February, US $49.67 million, Korea $4.06 million, UK $14.54 million and Germany $12.36 million.

Copyright Business Recorder, 2022

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