Pakistan government borrows $4.5 billion foreign loans

Pakistan government borrows $4.5 billion foreign loans

ISLAMABAD: The federal government has borrowed $4.499 billion from multiple financing sources during the July-November period of the current fiscal year (2020-21).

According to data available with this scribe, the government’s borrowing has now reached 37pc of the FY21 budget estimates of $12.23 billion.

In the corresponding period of fiscal year 2019-20, the borrowing stood at $3.10 billion, which was around 24pc of the annual budgeted amount of $12.95 billion.

As per the documents, the total receipt of $4.499 billion constituted $1.3 billion or 29pc as programme/budgetary support assistance to restructure Pakistan’s economy; $1.62 billion (36pc) as foreign commercial borrowing to repay maturing foreign commercial loans; $518 million (12pc) as assistance to finance development projects; $60 million (1pc) as short-term credit; and $1 billion (22pc) as safe deposits.

Meanwhile, bilateral and multilateral development partners disbursed $1.87 billion of foreign economic assistance during July-November FY21, as against the budgetary allocation of $5.81 billion, on concessional terms with longer maturity.

Among the multilateral development partners, Asian Development Bank provided $712 million, while World Bank disbursed $694 million. From bilateral sources, France ,USA and China provided $33.4 million, $63.8 million and $21.8 million, respectively.

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