About $17 billion in external debt incurred in FY22

ISLAMABAD: Pakistan incurred approximately $17 billion in external debt from multiple sources of funding in FY 2021-22, including $4.9 billion from foreign commercial banks (29%) against the total external loans budgeted at $14.088 billion for fiscal year 2021-22.

This does not include the billion dollars received from the International Monetary Fund (IMF) during this period.

Data from the Economic Affairs Division (EAD) shows that the country received $3.434 billion from multiple sources of funding in June 2022, including $2.240 billion borrowed from foreign commercial banks. The government had budgeted foreign aid estimates of $14.088 billion for fiscal year 202122, including $13.871 billion in loans and $217.44 million in grants from multilateral and bilateral sources.

External inflows in the corresponding fiscal year 2020-21 were $14.282 billion, including $4.721 billion from foreign commercial banks against the budgeted amount of $12.233 billion. The total receipt of $16.974 billion represents $4.828 billion from multilateral, $708.08 million from bilateral, $4.863 billion from foreign commercial banks and $2.041 billion from bond issuance and $3 billion from Saudi Arabia term deposit dollars.

Pakistan’s funding needs fully met for this year, says SBP chief

Non-project aid was 13.220 billion dollars including 11.861 billion dollars for budget support and project aid was 2.221 billion dollars. Secured loans amounted to $1.532 billion in fiscal year 2021-22. The government borrowed $4.863 billion from foreign commercial banks in the 2021-22 financial year including $1.140 billion from Dubai Bank, $487.26 million from SCB (London), $61 million from Ajman Bank PJSC, $343.50 million to Suisse AG, UBL and ABL, $591.25 million from Emirates NBD, $52.32 million from ECO.T/Bank and $2.240 billion from China (received in June).

Among the multilateral development partners, mainly the Asian Development Bank provided 1.625 billion dollars out of the 1.479 billion dollars planned, the World Bank disbursed 1.579 billion dollars out of the 2.366 billion dollars budgeted, the AIIB 41.62 million USD, IDB USD 78.98 million and IDB (S-Term) USD 1.327 billion.

China disbursed $162.60 million in FY 2021-22 against budgeted $69.66 million, US $69.82 million, Korea $5.51 million, Kingdom United States $16.01 million, Germany $16.68 million and Saudi Arabia $401.09 million, including $100 million in June for imports of petroleum products.

Copyright Business Recorder, 2022

About Tammy N. McFarlane

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