Jul-Dec: Pakistan takes on $9.432 billion in external debt – Business & Finance

ISLAMABAD: Pakistan incurred $9.432 billion in external debt from multiple funding sources in the first half (July-December) of 2021-22, including $2.031 billion from foreign commercial banks (21.53% ) against total budgeted external lending of $14.088 billion for the entire fiscal year.

Data from the Economic Affairs Department (EAD) exclusively available with company registrar shows that the government received $3 billion in term deposits in December.

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-December) of FY 2020-21 were $5.688 billion, including $2.054 billion from foreign commercial banks against the budgeted amount of $12.233 billion. The country received $4.560 billion from multiple funding sources in December 2021, including $502.05 million from foreign commercial banks.

The total receipt of $9.432 billion represents $2.907 billion from multilateral, $150.19 million from bilateral, $2.031 billion from foreign commercial banks and $1.041 billion from bond issuance and three billions of dollars in term deposits.

The government borrowed $2.031 billion from foreign commercial banks in the first half of the current fiscal year, including $1.140 billion from Dubai Bank (including $420 million in December), $487.26 million to SCB (London) including ($9.05 million in December), $61 million to Ajman Bank PJSC, and $343.50 million from Suisse AG, UBL and ABL.

Among the multilateral development partners, mainly Asian Development Bank provided $1.062 billion, World Bank disbursed $965.73 million, AIIB $37.77 million and IDB (S-Term) 800, $69 million. China disbursed $1.07 million in December; however, the country received $74.51 million in the first half (July-December) of the current fiscal year, the United States $32.60 million, Korea $3.23 million, the United Kingdom United $14.54 million and Germany $12.07 million.

Copyright Business Recorder, 2022

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