External debt of 13.539 billion dollars contracted in 11 months – Business & Finance

ISLAMABAD: Pakistan incurred $13.539 billion in external debt from multiple funding sources in the first 11 months (July-May) of 2021-22, including $2.623 billion from foreign commercial banks (19%) against total budgeted external lending of $14.088 billion for the entire fiscal year.

The Economic Affairs Division (EAD) on Tuesday released data that shows the country received $505.65 million from multiple sources of funding in May 2022. However, no amount was borrowed from foreign commercial banks in May 2022.

The government has budgeted foreign aid estimates 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-May) of FY 2020-21 were $12.135 billion including $3.609 billion from foreign commercial banks against the budgeted amount of $12.233 billion.

The total receipt of $13.539 billion represents $4.254 billion from multilateral, $593.31 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 10.503 billion dollars including 9.181 billion dollars for budget support and project aid was 2.009 billion dollars. Secured loans amounted to $1.026 billion in the first eleven months of 2021-22.

The government borrowed $2.623 billion from foreign commercial banks in the first eleven months of the current fiscal year, including $1.140 billion from Dubai Bank, $487.26 million from SCB (London), $61 million dollars to Ajman Bank PJSC, $343.50 million to Switzerland AG, UBL and ABL and $591.25 million to Emirates NBD.

Among the multilateral development partners, mainly the Asian Development Bank provided $1.479 billion, the World Bank disbursed $1.233 billion, the AIIB $39.23 million, the IDB $68.83 million and the IDB (S-Term) $1.290 billion.

China disbursed $157.62 million in the first 11 months (July-May) of the current fiscal year, the United States $64.72 million, Korea $5.16 million, the Kingdom United States $16.01 million and Germany $14.34 million and Saudi Arabia $301.09 million, including $100 million in May for imports of petroleum products.

Copyright Business Recorder, 2022

About Tammy N. McFarlane

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