ISLAMABAD: Pak\u00adistan has received almost $12bn foreign loans in the first eight months (July-February) of 2024-25, aiming to cross the $19.2bn target by June 30.<\/p>\n
While half of this portfolio was legacy rollovers from China, Saudi Arabia, and the United Arab Emirates, fresh loans and grant inflows amounted to $5.95bn in eight months, almost 25pc lower than the comparable period of last fiscal year.<\/p>\n
In its monthly report on Foreign Economic Assis\u00adtance (FEA) released on Wednesday, the Economic Affairs Division (EAD) said that against its annual target of $19.4bn (including grants), total FEA in 8MFY25 amounted to $4.953bn when compared to $6.678bn in the same period last year with the annual target of $17.6bn.<\/p>\n
This does not include about $1bn disbursed by the IMF in October 2024 as an upfront payment under the $7bn ongoing EFF that is accounted for separately by the State Bank of Pakistan. However, $1.2 billion was received a year back under the Standby Arrangement (SBA), which had also seen similar accounting treatment.<\/p>\n
Pakistan receives $5.95bn in July-Feb FY25<\/p>\n
With three rollovers and fresh disbursements, the total external assistance in eight months amounted to $11.95bn. This included $3bn rollovers by Saudi Arabia, $2bn by UAE and $1bn by China. This does not include another $2bn China rolled over earlier this month, making its total rollovers to $3bn thus far. Pakistan has a total annual rollover portfolio of about $12.7bn in safe deposits and loans from these three countries, leaving the country\u2019s net international reserves (NIR) at a substantial deficit.<\/p>\n
The FEA recorded by the Economic Affairs Division showed inflows fell by about 26pc to about $4.95bn in July-February FY25, apparently because of delayed IMF bailout and subsequent $1bn disbursements. Last year, inflows amounted to $7.88bn in the same period, including inflows from the IMF.<\/p>\n
In February, the EAD reported inflows at $365m compared to $830m in January.<\/p>\n
The EAD said that out of $4.95bn, about $2.74bn was received for budgetary support or programme loans and the remaining $2.2bn for project financing. During the same period last year, EAD secured about $5.14bn as project aid and $1.8bn in project loans.<\/p>\n
Of the total, inflows from multilaterals stood at $2.49bn in 8MFY25 compared to $3.8bn a year ago, while bilateral disbursements stood at $334m against $949m.<\/p>\n
The EAD reported receiving about $500m from foreign commercial lenders (UAE-based) in 8MFY25, showing a minor recovery from commercial banks that had stayed away from financing Pakistan last year. It may be noted that the government has budgeted $3.8bn from foreign commercial banks for the current year, showing a poor start, again due to the delayed IMF umbrella.<\/p>\n
The government has projected $1bn from international bonds and $9bn inflows from bilateral partners \u2014 China and Saudi Arabia \u2014 for the current fiscal year. These projections include $5bn time deposit from the Kingdom of Saudi Arabia and $4bn China\u2019s SAFE deposit. These projections are critical for Pakistan to meet its external financing gap as part of the IMF programme.<\/p>\n
In addition, Pakistan also received $1.3bn from overseas Pakistanis through Naya Pakistan Certificates compared to $590m. The Asian Development Bank led the multilaterals with $1.098bn disbursement compared to its $1.93bn in 8MFY24. The World Bank provided $849m in eight months.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Pak\u00adistan has received almost $12bn foreign loans in the first eight months (July-February) of 2024-25, aiming to cross the $19.2bn target by June 30. While half of this portfolio was legacy rollovers from China, Saudi Arabia, and the United Arab Emirates, fresh loans and grant inflows amounted to $5.95bn in eight months, almost 25pc […]<\/p>\n","protected":false},"author":1,"featured_media":7079,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news"],"_links":{"self":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/7078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7078"}],"version-history":[{"count":1,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/7078\/revisions"}],"predecessor-version":[{"id":7080,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/7078\/revisions\/7080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/media\/7079"}],"wp:attachment":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}